Yes, a builder can refuse or restrict an assignment if your Agreement of Purchase and Sale allows it. Most builder agreements require written consent, and many limit timing, charge a fee or ban public advertising, including on MLS. If the agreement is silent, assignments may be permitted, but get a lawyer’s opinion before relying on that.
Key takeaways
- The assignment clause in your agreement is the rule that applies.
- Common limits: builder consent, a fee, no assignments before a certain date, no MLS or public marketing.
- Assigning without required consent can put you in default and risk your deposit.
- Check the clause before you list, not after you find a buyer.
What does a typical assignment clause say?
Clauses vary widely, but common provisions include:
- Consent required: the builder must approve in writing, sometimes “in its sole discretion.”
- Fees: a flat or percentage fee plus legal costs.
- Timing: no assignments until the builder has sold a set percentage of units, or only before occupancy.
- Marketing restrictions: no listing on MLS or public advertising of the unit.
- Family exceptions: assignments to a spouse or immediate family allowed without a fee.
- Joint liability: the original buyer may remain liable if the assignee defaults.
Why do builders restrict assignments?
Builders don’t want assignments competing with their own unsold inventory, and they want control over who ends up on title and obtains financing. Restrictions are usually loosest once the project has sold out.
What if my agreement says nothing about assignments?
A silent agreement may leave room to assign, but builders can still create practical obstacles at closing. Have a real estate lawyer review your agreement and amendments before you market the unit.
What happens if I assign without consent?
If your agreement requires consent and you proceed without it, the builder may treat it as a default. Consequences can include terminating the agreement and keeping your deposits. Always get the builder’s written consent as a condition of the assignment agreement.
How to list an assignment when public marketing is restricted
If MLS listing is banned, many sellers market privately to buyer networks and assignment-focused platforms. Check whether your clause bans all advertising or just MLS, and keep details like the unit number private if required. When posting on Assignment Connect, you choose what to show.
Frequently asked questions
Can a builder say no to an assignment?
Yes, if the purchase agreement gives them that right. Many agreements require builder consent.
Can I list my assignment on MLS?
Only if your purchase agreement allows it. Many builder agreements prohibit MLS or public advertising of assignments.
How long does builder approval take?
It varies by builder. Build time for consent into your assignment agreement’s conditions and closing timeline.
Buying or selling an assignment?
Browse live assignments or post yours for free on Assignment Connect.
Sources
- RECO: Buying or selling a pre-construction home
- OREA Form 150: Assignment of Agreement of Purchase and Sale
This guide is general information, not legal, tax or financial advice. Rules change and every agreement is different, so speak with a real estate lawyer, accountant or mortgage professional about your situation.