Quote:
Originally Posted by superdennis
I don't know why "assignments/shadow flipping" is a problem.
It's been around forever.
Back in the day, pre-sale condos were flipped before completion
Developers (seller) of course felt cheated so now there are assignment restrictions on their purchase contracts.
So if a seller sees an assignment clause on the contract of purchase and sale,
1. He can cross it out
2. Add a stipulation if it does get flipped for profit, they get x%.
If you or your realtor can read and write English, assignments is not a problem.
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I'm thinking it is because by assigning, you can avoid property transfer tax or even capital gain. Gov't gets a big chunk of revenue from PTT so they need to make sure it is tracked.
Assignments are good in this market because if you are offering a no subject offer, at least you can safely add buyers to the contract in order to get approval / financing.
Leave it to those low % of unethical agent to fuck over the majority of honest ones.