In this article, we will рассмотрим one of the ways to acquire real estate—through the conclusion of an assignment agreement.
It is no secret that purchasing a condominium at the early stage of construction is beneficial both in terms of price and payment structure with the developer. The value of a property under construction increases with each completed floor. Accordingly, money invested in an apartment before construction begins can be considered an investment aimed at generating profit upon resale of the completed unit.
On the other hand, if there are buyers interested in purchasing a unit before construction is completed, nothing prevents the original buyer and the new buyer from entering into an assignment agreement—i.e., the transfer of rights under the condominium sale and purchase agreement (the primary contract) concluded with the developer. Let us consider the procedure for concluding such an agreement.
1. Review of the Primary Contract
It is necessary to carefully examine the terms of the original contract. If they do not satisfy the buyer, making amendments later will be extremely difficult. Therefore, read the contract thoroughly and ensure that all referenced appendices are included.
2. Verification of Obligations Fulfillment
By entering into an assignment agreement, you assume all rights and obligations of the original buyer. If the developer has violated the construction schedule or the original buyer has failed to make a payment, you will also bear the consequences of such breaches. Therefore, it is essential to request confirmation that both parties have fulfilled their obligations under the primary contract before signing the assignment agreement.
3. Signing the Assignment Agreement
After verifying all documents, the assignment agreement should be drafted, specifying the terms under which you become the buyer under the primary contract. The agreement must be tripartite and signed by the developer, the original buyer, the new buyer, and two witnesses.
Since the assignment agreement is based on the original sale and purchase contract, the new buyer receives the original documents, which will serve as the basis for obtaining ownership of the condominium after construction is completed and the title deed (chanote) is issued.
Assignment of rights can also be applied to agreements for completed properties—condominiums or houses—if they are purchased on an installment basis. In such cases, instead of the developer, the seller (an individual or legal entity) becomes a party to the assignment agreement. In addition to the documents mentioned above, the new buyer should also verify the title deed confirming the seller’s ownership of the property.
Author: Alexandra Agapitova.
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