***An assignment is when a party to a contract (i.e Agreement of Purchase of Sale), transfers the benefits, rights, and interests of the agreement to a third party, the assignee. The assignment of a contract is permitted under s. 53(1) of the Conveyancing and Law of Property Act.
What is a valid assignment?
Under section 53(1) of the Conveyancing and Law of Property Act, a valid assignment must meet the following conditions: (1) assignment must be absolute and not provided as a security (2) the assignment must be in writing, (3) must be signed by or in the writing of the assignor, and (4) written notice and consent must be provided to the developer.
What happened if the seller defaults?
If the Assignment Agreement is not completed because the seller has defaulted, then the Assignment Agreement shall become null and void. In the event of a seller’s default, the money paid by the assignee will be reimbursed without interest and the assignor will not be liable for any expenses, losses or damages incurred by the assignee.
What happens if the assignee defaults?
In the event that the assignee defaults, the vendor may pursue their claims against either the assignor or assignee. However, the assignor and assignee agreed may agree to vary their respective rights, entitlements, liabilities, and obligations in an assignment, which may impact who the seller’s claim is against.
Have any questions?
For all your Real Estate requirements, get in touch with York National Realty Inc.
Give us a call today at:
Phone: 905-503-1733
Email: [email protected]
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