The Most Common Assignment Mistake

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The single most common mistake we see with Assignment Deals is filling out the Schedule B page incorrectly.

If you've never handled an assignment, the Assignment of Agreement of Purchase and Sale (OREA Form 145, or Form 150 for condos) includes a Schedule B that outlines the payments to be made in the Assignment Transaction.

Here’s what it looks like:

It might seem intimidating if it’s your first time, but don’t worry—I’ll walk you through how to fill it out correctly and avoid the most common mistake.

Example Scenario:

With this information, we can fill out Schedule B:

Line 1: Total Purchase Price including the original Agreement of Purchase and Sale and this Assignment Agreement

This is the total amount John is willing to pay—$600,000. It includes the original purchase price ($500,000) and Jane’s profit ($100,000).

Line 2: Purchase Price of original Agreement of Purchase and Sale as indicated in Schedule C

This is straightforward, $500,000 (as outlined in the original APS).

Line 3: Deposit(s) paid by Assignor to the seller under the original Agreement of Purchase and Sale as indicated in Schedule C, to be paid by the Assignee to the Assignor as follows

Here, you’ll input the $50,000 Jane has already paid as deposits under the original APS. Important: This refers to deposits in the original APS, not John’s deposit in the Assignment Agreement.

Line 4: Payment by Assignee to Assignor for this Assignment Agreement

This line asks for the payment specific to this Assignment Agreement.

Most people make the mistake of entering $100,000 (the profit paid to Jane).

However, the correct amount has two components:

1. Profit/Lift: $600,000 (total price) - $500,000 (original price) = $100,000.
2. Reimbursement of Jane’s Deposit: John must also reimburse Jane’s $50,000 deposit.

So, Line 4 should be $150,000 ($100,000 + $50,000).

Line 5: Deposit paid under this Assignment Agreement

From our example, this is $20,000 (the deposit John provided for the Assignment Agreement).

Line 6: Balance of the payment for this Assignment Agreement

This is the balance remaining after deducting the deposit (Line 5) from the payment (Line 4). $150,000 - $20,000 = $130,000.

When filled out correctly, Schedule B will look like this:

Why is Line 4 calculated this way?

The builder doesn’t refund the Assignor’s deposits after the APS is assigned. Instead, the Assignee gets credit for any deposits already paid on the property.

This means the Assignee must pay both the profit (or lift) and the reimbursement of deposits to the Assignor unless the agreement specifically states otherwise.

By following this example, you’ll avoid this common mistake in your future deals and ensure the Assignment Agreement is filled out properly—saving time, confusion, and potential problems.