If you want to flip houses with assignment clauses for a profit, take a careful look at the criteria the Canada Revenue Agency (CRA) will consider when taxing you. If possible, structure your purchase so that you’ll receive capital gains treatment, and perhaps even the principal residence exemption.
Realtors who are asked to represent an assignor (original buyer) or assignee (ultimate buyer) pursuant to a Contract of Purchase and Sale should, as a minimum, ensure that:
1. The assignor has the right to assign and the assignee has the right to receive a valid assignment by referring to the original contract.
Flipping houses with assignments clauses must be used carefully to take advantage.
Flipping Houses with Assignment Clauses – Part 1 of 4Flipping houses with assignment clauses are commonly used by Canadian professional real estate investors because it gives them an advantage to sell the property before closing. One needs to understand thoroughly the legal aspect of it. Due to the complexity of Flipping houses with assignment clauses, one must learn from real estate investment experts as well as seeking a legal opinion in writing to protect you.