Here’s a nightmare scenario: You bought a presales contract for a condo in Vancouver but delays in construction made you change your mind. No problem! Just sell your contract for a profit, and then the buyer resells the contract for yet another profit! But wait – the third buyer defaults, the second buyer defaults, and the developer is suddenly coming after you for a contract you thought you got out of a long time ago.
Attention Presales Buyers: If you are unable to complete your transaction of sale, or have assigned your agreement to another party who has not completed the transaction, gather your contracts and documents and make an appointment to meet your lawyer.
Presales agreements are contractual obligations with a developer, where you, the buyer, are compelled to purchase the unit when it is complete, at the fixed conditions in the agreement.
This is not a sales agreement. It binds the rights and obligations of the potential buyer and the developer to the conditions of the contract.
If you have transferred your presales agreement to another party, you may very likely have an obligation to the developer if the assigned buyer defaults.
Full story at househunting, and a tip of the hat to Bubble Lad for the link.