By James Park
Assignment sales are one of the most powerful strategies in the Miami pre-construction investor’s toolkit — and one of the least well understood by buyers entering the market for the first time. An assignment sale allows the original purchaser of a pre-construction unit (the “assignor”) to sell their purchase contract to a new buyer (the “assignee”) before the building reaches occupancy, without ever taking title to the actual condo unit.
Done correctly, assignments allow investors to realize pre-construction appreciation without waiting 3–5 years for the building to complete, without incurring the carrying costs of ownership, and without triggering the full suite of closing costs that a title transfer would entail.
When you purchase a pre-construction unit and an assignment clause is included in your purchase agreement, you have the right to sell your interest in the contract to a third party before closing. The assignee takes over your obligations under the agreement — including any remaining deposits and the obligation to close at the contracted purchase price — and pays you an “assignment fee” or premium that represents your profit on the appreciation that has occurred since your original purchase.
Example: You purchased a unit in 2022 at a price of $800,000, paying 30% in deposits ($240,000). By 2025, equivalent units in the building are trading for $1,100,000. You assign your contract for $1,050,000 — the assignee takes over your deposit position, pays you the difference between your original price and the assignment price ($250,000), and assumes the obligation to close at $800,000 at occupancy.
Not all Miami pre-construction purchase agreements permit assignment. Developers have become increasingly restrictive about assignment rights in recent years — some prohibit assignments entirely, others require written developer consent and a fee of 1–2% of the purchase price, and others permit assignments freely after a specified holding period. Review your agreement with a Florida real estate attorney before assuming you have assignment rights.
Assignment proceeds in the United States are generally taxed as ordinary income if the asset has been held for less than one year, or as capital gains if held longer. For foreign nationals, FIRPTA (Foreign Investment in Real Property Tax Act) withholding applies to real estate dispositions including assignments. We strongly recommend consulting a US tax attorney before executing any assignment transaction.
We maintain one of Miami’s most active pre-construction assignment networks, with over 6,500 registered buyers actively seeking units in active projects. If you are a pre-construction buyer looking to assign your unit, contact us — we can typically match assignors with qualified assignees more quickly and discreetly than any public listing process.
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