An assignment is a type of sales transaction. During the sales transaction the original buyer allows another buyer to overtake buyer rights and obligations of the Purchase and Sale Agreement, before closing on the original buyer’s property.
To put it simply an assignment clause enables homebuyers to sell the home before they actually take possession of it. In Ontario, these types of clauses are most common for condos and pre-built properties, as opposed to properties for re-sale.
Assignment serve as a useful tool for both buyers and sellers. When they’re done properly they are legally binding and this allows a passover of the contract to another buyer, thus avoiding breaching the original contract and any legalities associated in doing so.
If the opportunity arises for you to consolidate your first and second mortgages into one loan at a lower interest rate, resulting in lower monthly payments without the need to add mortgage insurance, you should jump on the opportunity. Why? Well, the truth is that it’s not that easy to accomplish since most homeowners don’t have enough home equity to consolidate both mortgages.
You can save money when you consolidate your mortgages into one secure mortgage because they generally carry higher interest rates. When you consolidate them, you can secure a lower fixed rate.
Spare yourself from personal liability by buying property under a corporation name. When you incorporate your business, you further protect your personal finances and personal property in the event of a legal action being filed against you. Aside from gaining further personal protection, you can also increase your business assets, credit rating and enter into other real estate investment after your first investment property is purchased.
When you begin to finance your home, you may hear many mortgage terms that you’re not all that familiar with. One of the most common is “assuming a mortgage.” This term has been around for many years and it comes with many advantages and disadvantages both homebuyers, and sellers as well.
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