For most of the last decade, assigning a presale in Metro Vancouver meant selling a contract at a profit before the building was finished. In 2026 it more often means getting out of a contract signed at 2021 or 2022 prices, recovering as much of the deposit as possible, and closing the chapter before completion forces a mortgage on a unit that may appraise below the price. The calculator handles both situations, and the buyer's side too. The guide below explains the parts that trip people up: GST on the lift, the BC home flipping tax, how income tax treats the gain, and when assigning beats closing or walking away.
How an assignment actually works
An assignment is the sale of your right to buy a presale unit, not the unit itself. The unit usually doesn't exist on title yet. The person you assign to, the assignee, takes over your contract with the developer and completes the purchase when the building is ready.
The assignee pays you two things:
- Your deposits back. This is the money you've already paid into the developer's trust account.
- The lift. This is the difference between the new price and your original contract price. In 2026, the lift is often negative. In that case it comes off your deposit refund instead of being added to it.
At completion, the assignee pays the developer the rest of the original price.
A few rules frame every BC assignment:
- Developer consent. The developer has to consent, and most charge a fee for it.
- Reporting. Since 2019, developers must report every assignment of a condo or strata purchase agreement to the province's Condo and Strata Assignment Integrity Register. That report includes the lift, the deposit reimbursement and the fee paid to the developer, and the information is shared with the Canada Revenue Agency.
- Liability. Many presale contracts keep the original buyer liable if the assignee fails to close. Read that clause before you sign an assignment agreement.
Where the money goes
The calculator's default is a typical 2026 situation: a $749,900 condo bought in June 2022 with $149,980 in deposits (20%), now assignable at about $689,900.
| Assigning at $689,900 | Amount |
|---|---|
| Deposits paid to the developer's trust account | $149,980 |
| Price shortfall (the negative lift) | −$60,000 |
| Developer assignment fee, 1.5% plus GST | −$11,811 |
| Commission, 2.5% of the assignment price plus GST | −$18,110 |
| Legal fees | −$1,500 |
| Cash back to the original buyer | $58,559 |
That's 39% of the deposits recovered, and a loss of about $91,400. Painful, but it compares with losing the whole $149,980 by walking away, or needing tens of thousands more in cash to close. We cover both of those options below.
The 2026 assignment market in numbers
Presale activity in Metro Vancouver has fallen off a cliff. According to MLA Canada data reported in September 2026, developers released 1,426 presold homes in July 2021, 572 in July 2025, and just 42 in July 2026. The assignment market has thinned out with it. One local analysis counted 462 assignments listed on MLS across Greater Vancouver and the Fraser Valley in April 2024, against 90 by the end of January 2026.
Pricing depends heavily on the building and the unit:
- Some one-bedroom assignments have reportedly traded 3% to 7% below the original contract price.
- Some Burnaby and Surrey contracts signed at the 2022 peak have been discounted 15% to 25%.
- Lenders have reported completion appraisals landing well below contract prices on many units.
For context, Metro Vancouver's apartment benchmark price was $686,200 in August 2026, down 6.6% from a year earlier. If you're pricing an assignment, the most useful comparables are recent resale sales of similar completed units nearby, not the developer's original price list.
Break-even and zero-cash prices
Two prices tell you most of what you need to know about your contract.
The break-even price is the assignment price at which you get all of your deposits back after the fee, commission and legal costs. On the default contract, that's about $783,800, or roughly $33,900 above the original price. That's the lift you need just to cover the costs of assigning.
The zero-cash price is the price at which the price shortfall and costs eat the entire deposit, so you get nothing back. On the default contract that's about $629,800. Below it, you'd have to pay the assignee to take the contract, or the deal can't be made to work at all.
Between those two prices, every $10,000 of assignment price is worth about $9,740 to you after commission. The chart in the calculator draws this line for your contract. If comparable resales suggest your unit is worth less than the zero-cash price, you're already in the territory where walking away and closing need to be compared carefully.
GST on the lift
Since May 2022, assignments of new residential units are subject to GST. The tax applies to the assignment amount, meaning the lift you receive. It doesn't apply to the part of the payment that reimburses your deposit.
On a positive $80,000 lift, that's $4,000 of GST. The assignor charges it to the assignee and sends it to CRA. If the assignment agreement doesn't say the GST is added on top, the price is generally treated as including it, and the $4,000 comes out of your pocket. Have your lawyer put "plus GST" in the agreement.
With a negative lift there's no GST on the lift, because there's no assignment amount to tax.
The developer's own assignment fee also carries GST. That's included in the calculator's fee line.
The BC home flipping tax
BC's home flipping tax took effect on January 1, 2025, and it explicitly covers presale contracts and their assignments. The clock starts on the date you signed the original contract, not on completion.
The tax works like this:
- Within 365 days: 20% of your net taxable income from the assignment.
- From day 366 to day 729: the rate falls on a straight line. The formula is 20% × [1 − (days held − 365) ÷ 365].
- From day 730: no tax.
For example, a contract assigned 608 days after signing is taxed at about 6.7%.
You must file a flipping tax return within 90 days of the assignment if you're inside the window, even if you believe an exemption applies. The exemptions cover life events such as death, separation, disability, a job relocation, and a few others. The province's own example: a buyer who assigns a presale within a year for a $50,000 net gain owes $10,000.
Most contracts being assigned in 2026 were signed in 2022 or 2023, well past 730 days, so the flipping tax doesn't apply to them. It matters most for anyone who signed during 2025 or later and assigns quickly.
Income tax on the profit
CRA's general position is that profit from assigning a presale is business income. That makes it fully taxable at your marginal rate, rather than a capital gain where only half would be taxed. Since 2023, the federal residential property flipping rule has also deemed any gain on a property or an assignment held less than 365 days to be business income, with only narrow exceptions for life events.
Capital gains treatment is possible for a contract held longer, where you can show you genuinely intended to live in the home and something changed. It's a fact-specific argument, not a default.
Put the taxes together for a quick assignment:
Take a contract signed in November 2025 and assigned 349 days later with an $80,000 lift. After the developer fee, commission and legal costs, the net profit is about $44,900. The BC home flipping tax takes 20% of that, about $8,980. Income tax at a 40% marginal rate takes about $17,960. You'd keep about $17,960, less than a quarter of the headline lift.
The calculator doesn't deduct the flipping tax when it estimates income tax. Ask your accountant how the two interact for your return.
Losses are less friendly than gains:
- Investment contracts. A loss on an assignment you entered as an investment can generally be deducted as a business loss or a capital loss, depending on how the gain would have been taxed.
- Contracts for a home you meant to live in. The loss may count as a loss on personal-use property, which isn't deductible.
The difference can be worth tens of thousands of dollars in tax, so get advice before you assign, not after.
Assign, close, or walk away
Here's how the three options compare for the default contract, assuming the unit is worth about $689,900 on completion:
- Assign. You get about $58,600 back, and your deposits and your exposure are both settled.
- Close. The lender will lend on the lower of the price and the appraisal. At 80% of $689,900, the mortgage is $551,920. The original price is $749,900 and $149,980 of it is already paid, which leaves $48,000 more to find, plus about $37,500 of GST on the original price. If you don't live in the unit, you'd also pay about $11,800 of property transfer tax. After that you either hold the unit, and carry it as a rental or a home, or sell it later with resale commission.
- Walk away. You lose the $149,980. Most BC presale contracts also let the developer resell the unit and pursue you for any shortfall, plus carrying and resale costs. Developers in Metro Vancouver have been doing exactly that in 2026, so walking away doesn't cap your loss at the deposit.
Closing can be the right call if you want the home and can carry the cash, or if you're confident in the building over the long term. Assigning is usually the cleaner exit when you can't or don't want to close. Our closing cost calculator and CMHC calculator show the completion-day math, including what an appraisal shortfall does to your insurance tier.
Developer consent and fees
Read your purchase agreement and the disclosure statement before you plan an assignment. Things to look for:
- Whether assignment is allowed at all, and when. Some developers only allow it once the project is mostly sold, or near completion.
- The assignment fee. It's commonly 1% to 3% of the original price, sometimes with an administration fee, plus GST.
- Marketing restrictions. Many contracts prohibit listing the assignment on MLS or advertising it publicly, which limits how you can find a buyer.
- What the developer needs. The developer has to collect the information it reports to the province before it consents, so budget a couple of weeks for paperwork.
- Whether you stay liable if the assignee fails to complete.
Some developers waive the fee for assignments to immediate family, or offer their own resale program for unhappy buyers. Ask. In a weak market, developers would often rather see a unit assigned to a qualified buyer than end up in a lawsuit over a failed completion.
Buying an assignment: what it really costs
Switch the calculator to "I'm buying an assignment" and it adds up the cash you'll need. Discounted assignments can be good buys in 2026, but a few costs surprise people:
- GST on the original price. At completion you pay the developer the remaining balance plus 5% GST on the full original contract price, not on the lower price you paid. On the default contract, that's $37,495, even though you're paying $689,900. The new first-time home buyers' GST rebate generally depends on the date of the builder's agreement, which is often before March 20, 2025, so don't count on it for an assignment without advice.
- Transfer tax on what you paid. Property transfer tax is charged on the total consideration, the original price plus or minus the lift. If you're a citizen or permanent resident, you'll live there, and the value is $1,100,000 or less, the newly built home exemption can remove it.
- The appraisal risk becomes yours. Your lender will lend on the lower of your price and its appraisal at completion. With the default numbers at 80% financing, an appraisal of $650,000 instead of $689,900 means about $31,900 more in cash.
- You inherit the contract terms. That includes the completion window, the specs and any clauses the original buyer agreed to. Read the whole original agreement and every amendment before you sign.
On the default numbers with 20% down and an appraisal at the assignment price, you'd pay the assignor $89,980 at assignment. That's their deposits less the $60,000 discount. At completion you'd pay about $88,000 more. That includes the GST and $2,500 of legal fees, and it assumes the newly built home exemption applies to the transfer tax. The total comes to about $178,000.
Mistakes we see with assignments
Pricing from the original contract, not from resale comparables. Buyers compare your contract with finished units they can walk through today, not with the price list from 2022.
Leaving GST out of the assignment agreement. If the price doesn't say "plus GST," you may end up paying it out of your lift.
Assuming the profit is a capital gain. CRA usually treats assignment profit as business income, and the federal flipping rule makes that automatic under 365 days.
Walking away thinking the deposit is the worst case. Developers can pursue the shortfall, carrying costs and legal fees on top of it.
Waiting until the completion notice to decide. Assignments take weeks to arrange, and the developer's consent process alone can take one or two. Start when the building is topped off, not when you get the call about keys.
Buyers ignoring GST on the original price. A $60,000 discount on the assignment doesn't reduce the GST you owe the developer.
Questions people ask us
How much does it cost to assign a presale in BC?
Expect a developer assignment fee of about 1% to 3% of the original price plus GST, commission if you use an agent, and legal fees of about $1,000 to $2,000. On a $749,900 contract with a 1.5% fee and 2.5% commission on a $689,900 assignment, the costs come to about $31,400 including GST.
Do I pay the BC home flipping tax on a presale assignment?
Only if you assign within 730 days of signing the original contract and no exemption applies. The rate is 20% of net taxable income within 365 days, sliding to zero at 730 days. Most contracts being assigned in 2026 were signed in 2022 or 2023 and are outside the window.
Is GST charged on a presale assignment?
Yes, on the assignment amount (the lift), but not on the reimbursement of your deposit. The assignor collects it and remits it to CRA. Make sure the agreement says the GST is in addition to the price. A negative lift carries no GST.
Is profit from a presale assignment a capital gain?
Usually not. CRA's general position is that assignment profit is business income, fully taxable at your marginal rate. Under the federal flipping rule, anything held less than 365 days is deemed business income unless a life-event exception applies. Capital gains treatment is possible only in specific circumstances, so get tax advice.
What happens if I can't close on my presale?
Your options are to assign the contract, negotiate with the developer for an extension or resale, or default. Defaulting usually means losing the deposit, and most contracts let the developer sue for any shortfall on resale plus costs. Assigning, even at a loss, often recovers part of the deposit and ends your exposure.
Can I assign a presale for less than I paid?
Yes. A negative lift is deducted from the deposit refund the assignee pays you. On a $749,900 contract with $149,980 in deposits, assigning at $689,900 returns about $58,559 after typical fees and commission.
Who pays property transfer tax on an assignment?
The assignee, when title is registered at completion. It's based on the total consideration, the original price adjusted for the lift. The assignee may qualify for the newly built home exemption if they're a citizen or permanent resident, will live in the home, and the value is $1,100,000 or less.
Do I stay liable after I assign my presale?
Often, yes. Many BC presale contracts keep the original purchaser responsible if the assignee fails to complete. Check your contract and the assignment agreement, and ask the developer whether it will release you.
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