Mastering Schedule B in Real Estate Assignment Agreements

Assignment transactions in Ontario’s real estate market present lucrative opportunities, allowing buyers to transfer their rights in a pre-construction property to a new buyer (the "Assignee"). These deals can be highly profitable, but they also require meticulous attention to detail—especially when completing Schedule B of the OREA Assignment Agreement (Forms 145/150).

For many REALTORS®, Schedule B is a common stumbling block. Misunderstanding how to calculate and document the key financial components—such as the assignment price, deposit reimbursement, and profit—can lead to errors that delay or even jeopardize the transaction. One of the most frequent mistakes occurs in Line 4, where agents often fail to correctly account for the Assignor’s deposit reimbursement, leading to miscalculations and potential disputes between parties.

This guide will walk you through how to properly complete Schedule B, step by step, using a real-world example. By mastering this process, you can ensure seamless closings, satisfied clients, and a stronger professional reputation.

Let’s break it down.

‍Introduction

Assignment deals allow buyers to transfer their rights in a pre-construction property to a new buyer (the "Assignee"). While profitable, these transactions require precision—especially when completing Schedule B of the OREA Assignment Agreement (Form 145/150). 

A single error here can derail your deal. Let’s break down how to fill out Schedule B correctly, using a real-world example.

Key Terms in Schedule B

• Assignor: Original buyer (e.g., Jane).
• Assignee: New buyer (e.g., John).
• Lift/Profit: Difference between original and assignment sale prices.
• Deposit Reimbursement: Repayment of the Assignor’s deposits to the builder.

Example Scenario

• Original Purchase: Jane buys a pre-construction condo for $500,000 and pays $50,000 in deposits.
• Assignment Sale: John agrees to buy Jane’s contract for $600,000 and provides a $20,000 deposit for the assignment.

Step-by-Step Guide to Completing Schedule B

Line 1: Total Purchase Price

• What to Include: Original price + Assignment profit (or loss)
• Example:
  $600,000 (John’s total payment for the assignment).

Line 2: Original Purchase Price

• What to Include: Price from the original Agreement of Purchase and Sale (APS).
• Example:
  $500,000 (Jane’s original price).

Line 3: Deposits Paid by Assignor

• What to Include: Deposits the Assignor already paid to the builder.
• Example:
  $50,000 (Jane’s deposits to the builder).

Line 4: Payment for the Assignment Agreement

• The Common Mistake: Only including the profit ($100,000).
• The Fix: Include profit + deposit reimbursement.
  
  • Profit: $600,000 - $500,000 = $100,000.
  • Deposit Reimbursement: $50,000 (Jane’s deposits).
  • Total for Line 4: $100,000 + $50,000 = $150,000.

‍Why This Matters: The builder does not refund Jane’s deposits. John must reimburse her to assume her position in the original APS.

Line 5: Deposit Under the Assignment Agreement

• What to Include: Deposit paid by the Assignee (John) for the assignment.
• Example:
  $20,000.

Line 6: Balance Owing

• Calculation: Line 4 - Line 5.
• Example:
  $150,000 - $20,000 = $130,000.

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Sample Schedule B (Filled Correctly)

Why Agents Get Line 4 Wrong

• Assumption: The builder refunds deposits. Reality: Assignees must reimburse the Assignor.
• Consequences of Errors: Delays, disputes, or even collapsed deals if funds aren’t properly allocated.

Pro Tips for REALTORS®

1. Double-Check Math: Always verify profit + deposit reimbursement.
2. Explain to Clients: Assignees pay both the profit and deposit reimbursement.
3. Consult a Lawyer: For complex assignments or if the builder’s consent is required.
4. Use a Checklist:
   
   • Line 1: Total price (original + profit).
   • Line 4: Profit + deposit reimbursement.

Benefits of Accuracy

• Smoother Closings: Avoid last-minute disputes over missing funds.
• Happy Clients: Clear communication builds trust.
• Professional Reputation: Fewer errors mean fewer headaches.

Final Takeaway: Schedule B mistakes are preventable. By mastering this template, you’ll turn assignment deals from daunting to routine.

Pro Tip: Save this guide as a reference and share it with your team!

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Disclaimer: This article is for educational purposes. Consult a real estate lawyer for legal advice.