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As your investment profile grows larger and larger you’ll notice that assigning a family member, wife or good friend to a home could be a definite advantage on your overall net worth. Especially in a rising real estate market where you can re-sell the property at a higher price before the completion date. Since half the property value is added onto your net worth, depending on the tax bracket your in, it might prove necessary to do a 3rd party buying. In this situation it’s important that in your contract you do not use “and or nominee”. But rather be straight forward with the name of who the purchaser is.

The general rule is that a buyer may assign their rights under the contract as long as they do not prejudice the rights of the seller. The seller must know who the buyer is. However, if the seller does not feel her rights are prejudiced then the seller may consent to the assignment identity not to be required. This is provided that you have notice in writing of the assignment. Both buyers and sellers should receive copies of this from their realtor.

If your still debating whether or not to have an assignment sale or 3rd party as ownership then you may impute a temporary clause to give you a few extra days to contact your assignee or 3rd party to ask for their permission. Your realtor will insert a “Assignment Option Clause” which should read something like the following sample clause:

“The buyer reserves the right to assign this contract in whole or in part to any third party without further notice to the Seller; said assignment not to relieve the Buyer from his/her obligation to complete the terms and conditions of this contract should the assignee default.”

Of course this is only a sample of what a realtor MAY use and should not be taken by person as a clause without first contacting their lawyer. When buying always remember the issues that affect an owners interest. You should keep your eye on the road. Rights-of-ways, passage or road widening may not have been surveyed or registered. Driveways and culverts may not have been constructed on any public roads without the permission of the Ministry of transportation. Permission could also be denied due to limited access roads.

Also, when building near to streams, rivers, oceans, lakes and cliffs; be sure to check your restrictions. You may find that the property your buying will be shrinking before your eyes in a matter of months. This applies to All Real Estate in the Fraser Valley market and all other British Columbia Real Estate. These tips may be useful in other provinces in Canada such as Calgary, Alberta. Again, this should not be relied upon as legal advice but simply as a guideline for your next real estate investment.

About the Author: Shane Toews is a Licenced Realtor who helps others to educate themselves about current real estate issues. He also provides assistance on how to find quality homes, apartments or vacation rentals in Canada's Fraser Valley area.

Visit his website RentFraserValley.com for more information on Fraser Valley Homes and Apartments for Sale or Rent