How Assignments Really Work in BC (and Why You Shouldn’t Touch Them)

A lot of buyers think Assignments in BC real estate are the fast track to easy money.

Buy a Pre-sale, flip the contract, pocket the profit. Simple, right? Not even close.

I’ve been in real estate since 2007, and I’ve seen too many smart people lose big because they didn’t understand how these contracts really work.

This post will give you the straight goods—no fluff, no hype—so you can avoid the mistakes that have cost others hundreds of thousands.

The Dream vs. The Reality

The dream goes like this: Buy a pre-sale, wait a few years, then sell the contract to someone else for a profit. You never touch a mortgage or pay full closing costs. Easy win.

The reality? Assignments are stacked with risks, hidden taxes, and contracts written to protect developers, not you! That’s the game you’re actually walking into.

Reality Check: An Assignment isn’t a shortcut to wealth. It’s a gamble where the house (developer) always has the edge.

Story Time: I once saw a Buyer walk away from a six-figure deposit because the unit they bought didn’t appraise when it was time to close. The bank said no, the numbers didn’t work, and the buyer couldn’t cover the gap. Years of waiting, gone in a single phone call. That’s how fast this can turn.

The Contract Trap

These contracts aren’t written for you. They’re written by the Developer’s lawyer’s. Buried in the fine print, Developers give themselves the power to:

• Shrink your square footage
• Swap out promised finishings
• Delay completion by years
• Cancel amenities
• Pass cost overruns onto you

Pro Tip: Never, ever sign an Assignment contract without a Lawyer who knows these deals inside out.

Taxes That Gut Your Profit

Think you’re walking away with a big payday? Think again. With assignments, you could be paying:

• GST on the assigned amount (not the original price)
• Property Transfer Tax
• The new BC Flipping Tax (up to 20%)
• The federal anti-flipping rule (profits under a year are fully taxed as business income)

Did You Know? The CRA actively monitors assignment sales. If you’re thinking of being “creative” with reporting, don’t.

The Financing Gamble

Here’s the kicker: You buy today, but you don’t qualify for financing until years later. No locked-in rates. No lender guarantee. If interest rates spike or your income changes, you could be out.

If the market dips, appraisals can come in lower than your purchase price, leaving you to cover the difference in cash.

Quick note: Since 2022, many B.C. pre-sale properties have dropped in value. This has left buyers facing unexpected shortfalls of tens or even hundreds of thousands of dollars at closing. In cases where Buyers cant complete on the purchase, deposits are being forfeited and legal action may be taken.

So Who Should Even Touch These?

Assignments aren’t for everyone. They can work for seasoned investors, cash buyers, or people who know how to navigate the fine print with the right team. But for first-time Buyers or anyone relying on tight financing, this is a minefield.

BC assignments look shiny from the outside, but the reality is far more complex. The rules are changing, taxes are tightening, and the risks are higher than most people realize. The ones who win are the ones who go in with eyes wide open

What if I have any questions about moving to Surrey or White Rock, BC?

Selecting an excellent real estate professional is key to a successful home purchase. The Germyn Group, with our deep understanding of South Surrey/White Rock and its real estate dynamics, is committed to guiding you every step of the way.

We invite you to book a consultation with us. During our meeting, we’ll discuss your needs, preferences, and any questions you might have about the real estate market.

As you embark on this exciting journey, remember that the right home is more than just a property; it’s a foundation for your future. With the Germyn Group by your side, let’s make your dream of homeownership a beautiful reality.