Coquitlam · Presale assignment
Assigning a Coquitlam presale contract before completion is a common investor strategy in active developments like Burke Mountain and Westwood Plateau-base. The rules — and the tax consequences — are tight. Here is the straight read.
Quick Answer
What should you know about Coquitlam Presale Assignment Rules?
Assigning a Coquitlam presale contract before completion is a common investor strategy in active developments like Burke Mountain and Westwood Plateau-base. The rules — and the tax consequences — are tight. Here is the straight read. Craig Johnston, Top 1% Team Member — Greater Vancouver REALTORS® and 47+ year Tri-Cities resident, can walk you through the local context. Free Strategy Call ends with a written one-page plan in 24 hours.
Presale assignment · Coquitlam
An assignment is the sale of your contract rights to a new buyer before the home is built and registered. The original buyer (assignor) sells their position to a new buyer (assignee). Common in Coquitlam presales, but heavily regulated.
Most presale contracts require the developer's written consent before an assignment can be completed. Some developers prohibit assignments entirely until completion.
Developers commonly charge an assignment fee ($2,500-$10,000 typical) to cover their administrative costs.
CRA treats assignment profit as business income (NOT capital gains) in most cases. 100% of profit is taxable as income at your marginal tax rate. Some assignments may qualify for capital gains treatment — depends on intent and history. Talk to a tax accountant.
Assignments of new-construction contracts trigger GST. Generally the GST applies to the profit portion of the assignment, but rules are complex. Confirm with a tax accountant.
PTT applies to the assignee at completion (when the contract is finalized into title). The assignor does not pay additional PTT.
BC's Home Flipping Tax (effective January 2025) applies an additional tax on residential properties sold within 2 years of acquisition. Sliding scale: highest rate (20%) for sales within first year, declining to 0% by 2-year mark. May apply to assignments depending on circumstances. Confirm how the rules apply to assignments specifically.
Craig Johnston is a 47-year Coquitlam resident and licensed REALTOR® at The MACNABS, Royal LePage Elite West. Top 1% Team Member — Greater Vancouver REALTORS®. Talk through your specific situation — no pressure, no obligation.
Assigning a presale contract can be a useful strategy, but it comes with rules and costs that catch people out. Six things to understand first.
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An assignment is the sale of your contract to buy a presale, before completion, to a new buyer. You are transferring your rights and obligations, not selling a finished home.
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Most presale contracts require the developer’s consent to assign, and some restrict it outright. Read your contract, because whether you can assign at all is set there.
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Developers commonly charge an assignment fee, and there may be conditions attached. Factor those costs in before you assume an assignment will be profitable.
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Profit on an assignment can be taxed as income, and GST and flipping-tax rules may apply. The tax picture on an assignment is often different from a normal resale, so get advice.
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Completion dates can move, and the market can shift between contract and completion. An assignment strategy that depends on rising prices carries real risk if the market cools.
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Because assignments sit at the intersection of contract, tax and GST rules, professional guidance is genuinely worth it here. The paperwork and the tax treatment are where mistakes get expensive.
The short version is that an assignment is a contract-and-tax transaction as much as a real-estate one, and the outcomes hinge on the specific presale contract, the developer’s policies and the current tax rules. Anyone considering one should read their contract carefully and get legal and tax advice before counting on it, rather than assuming an assignment will be simple or automatically profitable.
A final word of caution: an assignment lives at the crossroads of contract law, income tax and GST, and the details in your specific presale contract govern what is actually possible. This is general information, not legal or tax advice. Anyone weighing an assignment should read their contract closely, confirm the developer’s policy and current fees, and get legal and tax guidance before relying on the strategy — the paperwork and the tax treatment are exactly where unadvised sellers get caught.
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