Consider This When Flipping Your New Condo in Toronto

When I am asked by a client if they can flip their new condominium/new home agreement of purchase and sale, I always respond that the first place to start is the agreement of purchase and sale itself. Unless the agreement of purchase and sale prohibits flips, then the purchaser is free to flip their agreement of purchase and sale. However, in my experience no builder’s agreement permits assignments without the builder’s consent. Sometimes the builder cannot unreasonably withhold their consent and sometimes the builder can arbitrarily withhold their consent.  Typically, builders charge a fee in order to obtain their consent to assign and it’s important to remember that even if the builder consents to your flipping of your agreement, the builder does not release you of your obligations such that if the person that you flip the agreement to fails to complete the transaction with the builder, then you are still on the hook and the builder can pursue his remedies against you.