Is a presale assignment a ‘skip transfer’?
Interesting question. Yes, of course it is … you are skipping a transfer. But it is not necessarily only available on a presale assignment. You could buy a legal fourplex where the owner had titled each unit as a strata suite for say $800,000. You have a signed offer and acceptance. However, you believe that the market for each suite is $250,000 – if sold separately. So, you go out, find 4 buyers at $250,000 each, and – with fine and timely management – assign each buyer a suite at that price, collect the 4 times $250,000 ($1 million) and pay out the original owner his $800,000 on the same day … skipping transfer taxes for yourself. And yes, picking up $200,000 profit. (Same as, but not necessarily limited to a pre-sale.)