In the world of real estate, contracts are crucial for both the buyer and the seller. These agreements outline the terms and conditions of the transaction, provide protection for both parties, and ensure that everyone is on the same page.

One clause that is commonly found in real estate contracts is the assignment clause. This clause is particularly important for investors, who may wish to assign their contracts to another party before closing.

In Ontario, the assignment clause is often included in the standard form agreement of purchase and sale. This clause allows the buyer to assign their interest in the contract to another party, provided that certain conditions are met.

One of these conditions is that the assignment must be approved by the seller. This ensures that the seller is aware of who they will be dealing with, and that they are comfortable with the new buyer taking over the contract.

Another condition is that the buyer must provide notice to the seller of their intention to assign the contract. This notice must be given in writing, and must include the name of the proposed assignee.

It is also important to note that there may be restrictions on the assignment clause. For example, the mortgage lender may require that the buyer obtain their approval before assigning the contract.

Additionally, if the property in question is a condominium, the buyer may be required to provide a disclosure statement to the seller outlining the terms of the proposed assignment. This ensures that the seller is aware of any potential changes to the ownership structure of the condominium.

In summary, the assignment clause in a real estate contract is an important provision that provides flexibility to both buyers and sellers. However, it is crucial that all parties involved understand the conditions and restrictions associated with this clause, in order to avoid any potential legal issues down the road. As always, it is recommended that buyers and sellers seek the advice of a qualified real estate lawyer before entering into any contracts.