HST on Assignment of Pre-construction Residential Agreement of Purchase and Sale

Does the assignment of an agreement of purchase and sale for a pre-construction condo unit attract HST?

The answer depends on the intention of the Buyer/Assignor.

If at the time of acquiring the interest, Buyer’s/Assignor’s primary purpose was selling the condo or selling an interest in the condo or leasing the condo then sale is made in the course of an adventure or concern in the nature of trade and the assignment will attract HST.

If an individual acquired an interest in the condo for the primary purpose of using it as a place of residence, the Assignment won’t attract HST even if at a later point in time, the person sells the condo or an interest in the condo.