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Assignment of Contract – Assignable Contract Basics for Real Estate Investors

What is assignment of contract? Learn about this wholesaling strategy and why assignment agreements are the preferred solution for flipping real estate contracts.

assign contract real estate

Beginners to investing in real estate and wholesaling must navigate a complex landscape littered with confusing terms and strategies. One of the first concepts to understand before wholesaling is assignment of contract, also known as assignment of agreement or “flipping real estate contracts.”  

An assignment contract is the most popular exit strategy for wholesalers, and it isn’t as complicated as it may seem. What does assignment of contract mean? How can it be used to get into wholesaling? Here’s what you need to know.

What Is Assignment of Contract?

How assignment of contract works in real estate wholesaling, what is an assignment fee in real estate, assignment of agreement pros & cons, assignable contract faqs.

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Assignment of real estate purchase and sale agreement, or simply assignment of agreement or contract, is a real estate wholesale strategy that facilitates a sale between the property owner and the end buyer.

This strategy is also known as flipping real estate contracts because that’s essentially how it works:

  • The wholesaler finds a property that’s already discounted or represents a great deal and enters into a contract with the seller,
  • The contract contains an assignment clause that allows the wholesaler to assign the contract to someone else (if they choose to!), then
  • The wholesaler can assign the contract to another party and receive an assignment fee when the transaction closes.

Assignment of contract in real estate is a popular strategy for beginners in real estate investment because it requires very little or even no capital. As long as you can find an interested buyer, you do not need to come up with a large sum of money to buy and then resell the property – you are only selling your right to buy it .

An assignment contract passes along your purchase rights as well as your contract obligations. After the contract assignment, you are no longer involved in the transaction with no right to make claims or responsibilities to get the transaction to closing.

Until you assign contract to someone else, however, you are completely on the hook for all contract responsibilities and rights.

This means that you are in control of the deal until you decide to assign the contract, but if you aren’t able to get someone to take over the contract, you are legally obligated to follow through with the sale .

Assignment of Contract vs Double Closing

Double closing and assignment of agreement are the two main real estate wholesaling exit strategies. Unlike the double closing strategy, an assignment contract does not require the wholesaler to purchase the property.

Assignment of contract is usually the preferred option because it can be completed in hours and does not require you to fund the purchase . Double closings take twice as much work and require a great deal of coordination. They are also illegal in some states.

Ready to see how an assignment contract actually works? Even though it has a low barrier to entry for beginner investors, the challenges of completing an assignment of contract shouldn’t be underestimated. Here are the general steps involved in wholesaling.

Step #1. Find a seller/property

The process begins by finding a property that you think is a good deal or a good investment and entering into a purchase agreement with the seller. Of course, not just any property is suitable for this strategy. You need to find a motivated seller willing to accept an assignment agreement and a price that works with your strategy. Direct mail marketing, online marketing, and checking the county delinquent tax list are just a few possible lead generation strategies you can employ.

Step #2: Enter into an assignable contract

The contract with the seller will be almost the same as a standard purchase agreement except it will contain an assignment clause.

An important element in an assignable purchase contract is “ and/or assigns ” next to your name as the buyer . The term “assigns” is used here as a noun to refer to a potential assignee. This is a basic assignment clause authorizing you to transfer your position and rights in the contract to an assignee if you choose.

The contract must also follow local laws regulating contract language. In some jurisdictions, assignment of contract is not allowed. It’s becoming increasingly common for wholesalers to assign agreements to an LLC instead of an individual. In this case, the LLC would be under contract with the seller. This can potentially bypass lender objections and even anti-assignment clauses for distressed properties. Rather than assigning the contract to someone else, the investor can reassign their interest in the LLC through an “assignment of membership interest.”

Note: even the presence of an assignment clause can make some sellers nervous or unwilling to make a deal . The seller may be picky about whom they want to buy the property, or they may be suspicious or concerned about the concept of assigning a contract to an unknown third party who may or may not be able to complete the sale.

The assignment clause should always be disclosed and explained to the seller. If they are nervous, they can be assured that they will still get the agreed-upon amount.

Step #3. Submit the assignment contract for a title search

Once you are under contract, you must typically submit the contract to a title company to perform the title search. This ensures there are no liens attached to the property.

Step #4. Find an end buyer to assign the contract

Next is the most challenging step: finding a buyer who can fulfill the contract’s original terms including the closing date and purchase price.

Successful wholesalers build buyers lists and employ marketing campaigns, social media, and networking to find a good match for an assignable contract.

Once you locate an end buyer, your contract should include earnest money the buyer must pay upfront. This gives you some protection if the buyer breaches the contract and, potentially, causes you to breach your contract with the seller. With a non-refundable deposit, you can be sure your earnest money to the seller will be covered in a worst-case scenario.

You can see an assignment of contract example here between an assignor and assignee.

Step #5. Receive your assignment fee

The final step is receiving your assignment fee. This fee is your profit from the transaction, and it’s usually paid when the transaction closes.

The assignment fee is how the wholesaler makes money through an assignment contract. This fee is paid by the end buyer when they purchase the right to buy the property as compensation for being connected to the original seller. Assignment contracts should clearly spell out the assignment fee and how it will be paid.

An assignment fee in real estate replaces the broker or Realtor fee in a typical transaction as the assignor or investor is bringing together the seller and end buyer.

The standard real estate assignment fee is $5,000 . However, it varies by transaction and calculating the assignment fee may be higher or lower depending on whether the buyer is buying and holding the property or rehabbing and flipping.

The assignment fee is not always a flat amount. The difference between the agreed-upon price with the seller and the end buyer is the profit you stand to earn as the assignor. If you agreed to purchase the property for $150,000 from the seller and assign the contract to a buyer for $200,000, your assignment fee or profit would be $50,000.

In most cases, an investor receives a deposit when the Assignment of Purchase and Sale Agreement is signed with the rest paid at closing.

Be aware that assignment agreements can have a bad reputation . This is usually the case when the end buyer and seller are unsatisfied, realizing they could have sold higher or bought lower and essentially paid thousands to an investor who never even wanted to buy the property.

Opting for the standard, flat assignment fee is much more readily accepted by sellers and buyers as it’s comparable to a real estate agent’s commission or even much lower and the parties can avoid working with an agent.

Real estate investors enjoy many benefits of an assignment of contract:

  • This strategy requires little or no capital which makes it a popular entry to wholesaling as investors learn the ropes.
  • Investors are not added to the title chain and never own the property which reduces costs and the amount of time the deal takes.
  • An assignment of agreement is easier and faster than double closing which requires two separate closings and two sets of fees and disclosures.
  • Wholesaling can be a great tool to expand an investor’s network for future opportunities.

As with most things, there are important drawbacks to consider. Before jumping into wholesaling and flipping real estate contracts, consider the downsides .

  • It can be difficult to work with sellers and buyers who are not familiar with wholesaling or assignment agreements.
  • Some sellers avoid or decline assignment of contract offers because they are suspicious of the arrangement, think it is too risky, or want to know who they are selling to.
  • There is a limited time to find an end buyer. Without a reliable buyer’s list, it can be very challenging to find a viable end buyer before the closing date.
  • The end buyer may back out at the last minute. This may happen if they do not have owner’s rights until the contract is assigned or they do not want to pay an assignment fee.
  • Not all properties are eligible for wholesaling like HUD and REO properties. There may be anti-assignment clauses or other hurdles. It is possible to get around this by purchasing the property with an LLC which can then be sold, but this is a level of complication that many wholesalers want to avoid.
  • Assignors do not have owner’s rights. When the property is under contract, investors cannot make repairs or improvements. This makes it harder to assign a contract for a distressed property in poor condition.
  • It can be hard to confirm an end buyer is qualified. The end buyer is responsible for paying the agreed upon price set by the seller and assignor. Many lenders do not handle assignment agreements which usually means turning to all-cash end buyers. Depending on the market, they can be hard to find.

In the worst-case scenario, if a wholesaling deal falls through because the end buyer backs out, the investor or assignor is still responsible for buying the property and must follow through with the purchase agreement. If you do not, you are in breach of contract and lose the earnest money you put down.

To avoid this worst-case scenario, be prepared with a good buyer’s list. You should only put properties under contract that you consider a good deal and you can market to other investors or homeowners. You may be able to get more time by asking for an extension to the assignment of contract while you find another buyer or even turn to other wholesalers to see if they have someone who would be a good fit.

What is the difference between assignor vs assignee?

In an assignment clause, the assignor is the buyer who then assigns the contract to an assignee. The assignee is the end buyer or final buyer who becomes the owner when the transaction closes. After the assignment, contract rights and obligations are transferred from the assignor to the assignee.

What Is an assignable contract?

An assignable contract in real estate is a purchase agreement that allows the buyer to assign their rights and obligations to another party before the contract expires. The assignee then becomes obligated to meet the terms of the contract and, at closing, get title to the property.

Is Assignment of Agreement Legal?

Assignment of contract is legal as long as state regulations are followed and it’s an assignable contract. The terms of your agreement with the seller must allow for the contract to be assumed. To be legal and enforceable, the following general requirements must be met.

  • The assignment does not violate state law or public policy. In some states and jurisdictions, contract assignments are prohibited.
  • There is no assignment clause prohibiting assignment.
  • There is written consent between all parties.
  • The property does not have restrictions prohibiting assignment. Some properties have deed restrictions or anti-assignment clauses prohibiting assignment of contract within a specific period of time. This includes HUD properties, short sales, and REO properties which usually prohibit a property from being resold for 90 days. There is potentially a way around these non-assignable contracts using an LLC.

Can a non-assignable contract still be assigned?

Even an non-assignable contract can become an assignable contract in some cases. A common approach is creating an agreement with an LLC or trust as the purchaser. The investor can then assign the entity to someone else because the contractual rights and obligations are the entity’s.

Assignment agreements are not as complicated as they may sound, and they offer an excellent entry into real estate investing without significant capital. A transaction coordinator at Transactly can be an invaluable solution, no matter your volume, to keep your wholesaling business on track and facilitate every step of the transaction to closing – and your assignment fee!

Adam Valley

Adam Valley

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Assigning Real Estate Contracts: Everything You Need to Know

Assigning real estate contracts refers to a method of earning money from buying and selling real estate. You find a seller who is eager to sell their property at a price that is far below its market value. 3 min read updated on February 01, 2023

Updated July 10, 2020:

Assigning real estate contracts refers to a method of earning money from buying and selling real estate. You find a seller who is eager to sell their property at a price that is far below its market value. Then, you find a buyer willing to pay a higher price for it.

How Contract Assignment Works

The first thing you need to do for contract assignment is to find a motivated seller. This is a person who owns a property, and for some reason, needs to sell in a hurry. This is generally because of a problem they are having, such as needing to move to a new home quickly. You'll need to be able to tell the difference between this sort of seller and someone who isn't in so much of a hurry to sell, and perhaps just wants to know what the property is worth.

You can find motivated sellers by placing ads in the newspaper, marketing on the internet, or sending direct mail. A combination of strategies works best.

The next thing you need to do is to obtain an assignment contract document. You can find templates on the web, but it's a good idea to have an attorney look it over before signing anything. That way, you will know that everything is completely legal. You will also be able to use that attorney if things don't work out as planned.

After the contract is signed, you submit it to a title company or an attorney who handles real estate closings . They will then do a title search. This ensures there are no existing liens against the property. This step is crucial because you do not want to buy a property that has a problem with the title. The title company is objective and independent and therefore makes sure everything is fair and legal.

At this point, you may search for a buyer. This will require more marketing strategies and can be a difficult process, but when you do find a buyer, you can move on to the next step - closing on the property. You'll need to collect a non-refundable deposit known as “earnest money” to make sure the buyer won't back out. If the buyer does change their mind, you get to keep the earnest money. This amount can be determined by you or the buyer.

Next, you get paid! The amount you receive will cover the amount you agreed to pay the property seller, along with an amount you get to keep in return for finding the buyer and making the transaction happen.

While this process takes place, you should make sure the seller understands how the process works , and that you will make a profit from the transaction. Otherwise, either the seller or buyer may decide they don't like the idea of your profiting from the sale and may back out. Reassure the seller that they are still getting the amount agreed upon for the sale.

Most contract assignments are done for $5,000 profit or less, but you can do it for a higher amount if you choose. If problems arise, it's possible to do a double or simultaneous closing, thereby keeping both parts of the sale separate and anonymous. Some title companies may not agree to do this, so if it becomes an issue, you should discuss it in advance.

Drawbacks of Contract Assignment

Contract assignment, or wholesaling, can be a  profitable venture , but there are a few pitfalls to watch out for, such as:

  • You cannot make any repairs or renovations to the property because you do not own it at any point.
  • You cannot offer any type of financing to the buyer.
  • You must get the sale accomplished within a short amount of time before the contract expires.
  • The process of closing on the property is detailed and can be complicated.
  • You must find a buyer who is willing to pay in cash because it's hard to find a lender who will approve a mortgage for an assigned contract.

You also need to check the laws in your state, because in some states it is not legal to market a property that you don't own.

If you need more information or help with assigning real estate contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

  • Property Contracts
  • Sample Real Estate Contracts
  • Land Sale Contracts
  • Commercial Real Estate Contract Provisions
  • Deed Contract Agreement
  • Assignment Of Contracts
  • Define Subject to Contract
  • As Is Sales Contract
  • Bill of Sale Land Contract
  • Extension Addendum to Contract

Assignment Definition

Investing Strategy

Investing Strategy , Jargon, Legal, Terminology, Title

Table of Contents

  • What Is an Assignment?
  • What is an Assignment in Real Estate?
  • What Does it Mean to Assign a Contract in Real Estate?
  • How Does a Contract Assignment Work?
  • Pros and Cons of Assigning Contracts

REtipster does not provide legal advice. The information in this article can be impacted by many unique variables. Always consult with a qualified legal professional before taking action.

An assignment or assignment of contract is a way to profit from a real estate transaction without becoming the owner of the property.

The assignment method is a standard tool in a real estate wholesaler’s kit and lowers the barrier to entry for a real estate investor because it does not require the wholesaler to use much (or any) of their own money to profit from a deal.

Contract assignment is a common wholesaling strategy where the seller and the wholesaler (acting as a middleman in this case) sign an agreement giving the wholesaler the sole right to buy a property at a specified price, within a certain period of time.

The wholesaler then finds another buyer and assigns the contract to him or her. The wholesaler isn’t selling the property to the end buyer because the wholesaler never takes title to the property during the process. The wholesaler is simply selling the contract, which gives the end buyer the right to buy the property in accordance with the original purchase agreement.

In doing this, the wholesaler can earn an assignment fee for putting the deal together.

Some states require a real estate wholesaler to be a licensed real estate agent, and the assignment strategy can’t be used for HUD homes and REOs.

The process for assigning a contract follows some common steps. In summary, it looks like this:

  • Find the right property.
  • Get a purchase agreement signed.
  • Find an end buyer.
  • Assign the contract.
  • Close the transaction and collect your assignment fee.

We describe each step in the process below.

1. Find the Right Property

This is where the heavy lifting happens—investors use many different marketing tactics to find leads and identify properties that work with their investing strategy. Typically, for wholesaling to work, a wholesaler needs a motivated seller who wants to unload the property as soon as possible. That sense of urgency works to the wholesaler’s advantage in negotiating a price that will attract buyers and cover their assignment fee.

RELATED: What is “Driving for Dollars” and How Does It Work?

2. Get a Purchase Agreement Signed

Once a motivated seller has agreed to sell their property at a discounted price, they will sign a purchase agreement with the wholesaler. The purchase agreement needs to contain specific, clear language that allows the wholesaler (for example, you) to assign their rights in the agreement to a third party.

Note that most standard purchase agreements do not include this language by default. If you plan to assign this contract, make sure this language is included. You can consult an attorney to cover the correct verbiage in a way that the seller understands it.

RELATED: Wholesaling Made Simple! A Comprehensive Guide to Assigning Contracts

This can’t be stressed enough: It’s extremely important for a wholesaler to communicate with their seller about their intent to assign the contract. Many sellers are not familiar with the assignment process, so if the role of the buyer is going to change along the way, the seller needs to be aware of this on or before they sign the original purchase agreement.

3. Find an End Buyer

This is the other half of a wholesaler’s job—marketing to find buyers. Once they find an end buyer, the wholesaler can assign the contract to the new party and work with the original seller and the end buyer to schedule a closing date.

4. Assign the Contract

Assigning the contract works through a simple assignment agreement. This agreement allows the end buyer to step into the wholesaler’s shoes as the buyer in the original contract.

In other words, this document “replaces” the wholesaler with the new end buyer.

Most assignment contracts include language for a nonrefundable deposit from the end buyer, which protects the wholesaler if the buyer backs out. While you can download assignment contract templates online, most experts recommend having an attorney review your contracts. The assignment wording has to be precise and comply with applicable local laws to protect you from issues down the road.

5. Close the Transaction and Collect the Assignment Fee

Finally, you will receive your assignment fee (or wholesale fee) when the end buyer closes the deal.

The assignment fee is often the difference between the original purchase price (the price that the seller agreed with the wholesaler) and the end buyer’s purchase price (the price the wholesaler agreed with the end buyer), but it can also be a percentage of it or even a flat amount.

According to UpCounsel, most contract assignments are done for about $5,000, although depending on the property and the market, it could be higher or lower.

IMPORTANT: the end buyer will see precisely how much the assignment fee is. This is because they must sign two documents that show the original price and the assignment fee: the closing statement and the assignment agreement, respectively, to close the transaction.

In many cases, if the assignment fee is a reasonable amount relative to the purchase price, most buyers won’t take any issue with the wholesaler taking their fee—after all, the wholesaler made the deal happen, and it’s compensation for their efforts. However, if the assignment fee is too big (such as the wholesaler taking $20,000 from an original purchase price of $10,000, while the end buyer buys it for $50,000), it may ruffle some feathers and lead to uncomfortable questions.

In these instances where the wholesaler has a substantially higher profit margin, a wholesaler can instead do a double closing . In a double closing, the wholesaler closes two separate deals (one with the seller and another with the buyer) on the same day, but the seller and buyer cannot see the numbers and overall profit margin the wholesaler makes between the two transactions. This makes a double closing a much safer way to conclude a transaction.

Assigning contracts is a way to lower the barrier to entry for many new real estate investors; because they don’t need to put up their own money to buy a property or assume any risk in financing a deal.

The wholesaler isn’t part of the title chain, which streamlines the process and avoids the hassle of closing two times. Compared to the double-close strategy, assignment contracts require less paperwork and are usually less costly (because there is only one closing occurring, rather than two separate transactions).

On the downside, the wholesaler has to sell the property as-is, because they don’t own it at any point and they cannot make repairs or renovations to make the property look more attractive to a potential buyer. Financing may be much more difficult for the end buyer because many mortgage lenders won’t work with assigned contracts. Purchase Agreements also have expiration dates, which means the wholesaler has a limited window of time to find an end buyer and get the deal done.

Being successful with assignment contracts usually comes down to excellent marketing, networking, and communication between all parties involved. It’s all about developing strategies to find the right properties and having a solid network of investors you can assign them to quickly.

It’s also critical to be aware of any applicable laws in the jurisdiction where the wholesaler is working and holding any licenses required for these kinds of real estate transactions.

Related terms

Double closing, wholesaling (real estate wholesaling), transactional funding.

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Assignment of Contract in Real Estate [And Or Assigns]

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Assignment of Contract in Real Estate

Most people think that the only way to start real estate investing is to either:

  • Pay a down payment of 10-20% from your own savings and finance the rest
  • Partner with another investor and do a joint venture

Assignment of Contract in Real Estate

The common thread between the options?

A large amount of money paid upfront, coming from your own pocket.

If you don't have a large amount of cash put away, you wonder how you'd ever get your start.

Are you just doomed to watching as investment opportunities pass you by?

Of course not!

There is a third option, a legitimate way of investing in real estate without a money down: real estate assignment contracts.

With assignment contracts, you are not purchasing the property outright; instead, what you are doing is getting the exclusive right to purchase a property within a certain timeframe, an investing strategy referred to as wholesaling.

Some wholesalers choose to put up an earnest money when securing the right to buy a property from a seller, but it is not required . All you have to do is to show up with a real estate contract and an offer to purchase the property for a specified amount by a specified closing date.

However, not all real estate contracts are written the same.

For wholesaling to be a lucrative investing strategy, you have to add a special provision to the purchase agreement before presenting it to the seller: t he assignment clause .

What Is an Assignment Clause in a Real Estate Contract?

An assignment clause in a purchase and sale agreement in real estate gives the original buyer (the assigning party) the ability to "assign" or transfer the rights to purchase a property to a new buyer (the assignee).

This is done by affixing the phrase "and/or assigns" next to your name in the real estate contract.

This means that on the buyer's name, it should say: John Smith and/or assigns .

As long as the seller agrees and signs the assignment contract, then it constitutes their written consent to sell the property to someone other than you.

However, if you forget to put the assignment clause, then you cannot assign the contract to someone else.

When you assign the contract to the new buyer, all the contractual obligations are transferred also, and the end buyer gets full ownership privilege once the transaction is completed.

As there is no free lunch in this economy, you get to collect an assignment fee for your troubles.

What Is an Assignment Clause in a Real Estate Contract?

Who Will Buy the Real Estate Assignment Contract?

In today's hot real estate market , house flippers, landlords, or simply buy-and-hold investors would not pass up investment opportunities such as the chance to buy real estate for lower than the market value.

For best results, it is recommended that you sell the assignment contract to all cash buyers for the following reasons:

  • They have the necessary liquidity to be able to close quickly, sometimes in as short as a week;
  • They are not dependent on financing from banks or traditional lenders, eliminating the uncertainty that they might not move forward with the deal;
  • They will buy the property as is, with no need to negotiate for repairs or ask concessions from the seller.

Sellers who enter in assignment contracts with a wholesaler are typically motivated sellers, which means they are stuck with a problem property that is either costing them money (major structural damage) or is in danger of being lost (foreclosure or bankruptcy).

In any case, they need to sell fast , and this is where cash buyers can be really helpful.

How Does Assignment Work?

Generally, the entire process of real estate investing via assignment agreement goes as follows:

Find a Property Which Can Be Bought for Lower Than Market Price

Distressed properties, such as those on the brink of foreclosure, can be bought for a huge discount and thus, present an attractive investment opportunity.

First identify an area you're interested in, then scout homes showing visible damage or neglect. You can then get in touch with owners for a potential purchase.

Make an Offer on the Property

To make a suitable offer on one property you have your eye on, do your due diligence by running comps.

This means looking at comparables ("comps"), or recently sold properties similar to your target purchase in order to establish a basis for your offer. Browsing online listings, or simply driving around the neighborhood and asking around are a good source of information on comparables.

Make an Offer on the Property

Present the Purchase Agreement With “And or Assigns” Verbiage Built In

Once you're confident with your offer, present a purchase and sale agreement to the owner. It should contain the buyer and seller information, property details, purchase price, closing date, and other contingencies both parties agree on.

Don't forget to include the assignment clause, as if you forget that, the contract prohibits you from assigning the contract to another investor and you'll be on the hook to buy the property.

Assign the Contract to an End Buyer

After the original contract is signed, you, as the buyer, reserves the right to purchase the property up to a time stated in the contract.

You can then find another buyer to assign the contract to if you don't intend to go ahead with the purchase yourself.

Collect Your Assignment Fee Once the Real Estate Transaction Is Completed

Once the keys and the cash change hands, you are compensated with an assignment fee at the close.

Pros And Cons Of Having Successors And Assigns Clause In Real Estate Contracts

Pro #1: you have control over the transaction.

Having the phrase "and or assigns" after your name in the assignment contract template gives you the flexibility of transferring your purchase rights to another buyer for a fee.

In case you change your mind later on and decide to purchase and flip the property yourself for a higher profit, you are also free to do so.

Pro #2: You Can Put Together Real Estate Deals And Earn Without Having To Spend A Dime

Real estate wholesaling is also known as "contract flipping".

Compared to a full blown house flipping where you have to buy the property and spend for repairs and upgrades prior to selling it for a higher price, with assignment contracts you don't have to do anything to the property before you earn.

The only investment you have to make is your time and effort in finding motivated sellers.

Sometimes, you don't even have to set foot on the property nor even see it with your own eyes before you sell your buying rights to another investor!

Such is the power of a real estate assignment contract.

Pro #2: You Can Put Together Real Estate Deals And Earn Without Having To Spend A Dime

Pro #3: The Parties Involved Can Have Huge Savings On Realtor's Fees

The buyer's and seller's agent will each get 3% commission off the purchase price. For illustrative purposes, say a house sells for $300,000, realtor fees are a whopping $18,000 (6% of the purchase price).

On the other hand, a real estate wholesaler's assignment fee typically maxes out at $7,000 , making it attractive for house flippers and other investors. They get a nice investment property at a discount without breaking sweat since it's a wholesaler who found it for them.

For the owner, this means they pocket more money since they don't have to take anything off the price they have agreed to sell for.

Pro #3: The Parties Involved Can Have Huge Savings On Realtor's Fees

Pro #4: Only One Closing Cost Needs To Be Paid

After the assignment of contract to the new buyer takes place, you immediately take yourself out of the equation, and the transaction ultimately happens between the seller and the end buyer.

This means the following:

  • only one set of paperwork is to be filed;
  • only the buyer and seller's names appear in the property chain of title; and,
  • only one transaction takes place, so the closing cost only needs to be paid once.

Pro #5: The Wholesale Deal Is Completely Transparent

Honesty and transparency are the hallmarks of a good business person.

If you're a newbie venturing out into your first deal, there's no one yet to vouch for you so you're relying on your word to build your reputation.

It is better to inform the seller beforehand that you intend to transfer the purchasing rights for a profit so that they wouldn't be shocked if another person shows up at the closing table.

Pro #6: You Develop a Network of Real Estate Sellers, Buyers, and Investors

Pro #6: You Develop a Network of Real Estate Sellers, Buyers, and Investors

There is a well-known saying that goes: "Your network is your net worth."

And it is very true in this line of business. Since wholesaling is mainly facilitating the sale of investment properties between buyers and sellers , you need to have a lot of social capital, which means you need to know a lot of people.

Wholesaling real estate allows you to rapidly expand your network, opening up plenty of opportunities for you down the line.

Con #1: If One Party Backs Out Of The Deal, It Would Reflect Poorly On You

In flipping assignment contracts, what you are selling is something intangible.

As such, it is heavily dependent on the reliability of the parties at both ends of the deal to uphold the terms of the contract. If either one defaults and the sale falls through, you're the one who is going to look bad.

That's why it is important to have a buyers list ready so that you can have some wiggle room if something unexpected happens.

Or even better, have a backup financing option so you can buy the property yourself if your buyer backs out.

Con #2: Certain Real Estate Properties Are Not Eligible For Assignment Contracts

HUD homes and real estate owned (REO) properties typically have anti assignment clauses preventing them from being bought and sold through a contract assignment.

Con #3: Sellers May Think You're Taking Advantage Of Them

The assignment fee that you are set to receive from the deal is written into the contract for the involved parties to see.

This may turn buyers and sellers off: buyers might feel like they're paying for more than the property is actually worth; and sellers might feel like they missed out on some serious money while a wholesaler gets to make money in their financial distress.

Con #4: You Don't Get Owner's Rights

Although you have the exclusive right to buy the property, ultimately, what you have is just a piece of paper. You cannot touch the property, you cannot live in it, you cannot do any upgrades--the list of restrictions go on.

For distressed properties in a state of disrepair, it can be a challenge to sell it even to the most seasoned of house flippers.

Con #5: You Have to Deal With the Time Pressure Element

The contract states the closing date by which you have to find a buyer. This is due to sellers usually rushing to offload a property that's causing them problems, so they're operating on a short timeframe.

If you are just starting out and your network is still quite small, finding a buyer within a short period of time can be difficult.

Con #5: You Have to Deal With the Time Pressure Element

Frequently Asked Questions: Real Estate Assignment Contracts

Do you need a license to be a real estate wholesaler.

The only thing you need to keep in mind to keep everything above board and avoid legal trouble is that you'll have to be the buyer or the seller in the transaction.

Never sell the property in behalf of the owner --that's akin to acting as a real estate agent, and you're going to need a license for that.

This is where having the and or assigns verbiage is useful because you can definitely make money from real estate without having to purchase the property yourself.

Once you got the exclusive right to buy the property, you can transfer said contractual rights to another buyer in exchange for a small fee who will then be the one to fulfill the terms of the original contract.

What Do I Do if the Buyer Backs Out From the Contract Assignment to Purchase the Property?

Real estate wholesaling typically goes like this: you find a buyer and everything seems to be going well and they're set to close in a few days and you're about to get that assignment fee.

Unfortunately, the buyer calls you to say that they aren't going ahead with the deal.

Are you on the hook to buy the property?

The answer is yes, unless you want to breach the contract and ruin your reputation as a wholesaler.

But, as long as you did your due diligence, crunched the numbers, and found that the property is a great buy, you shouldn't be worried about losing money.

You're guaranteed to make money eventually, maybe not as fast as if it was a straight up wholesale transaction, but there's nothing to be scared of about getting "stuck" with the property in the meantime as you look for a buyer.

What is Double Closing?

When you choose the double closing method, there is an extra step to the ones outlined above : fund the real estate purchase yourself using your own cash, or through hard money loans. Although it has a higher interest rate versus traditional options, hard money loans are favored by real estate investors due to fast approvals and interest-only payment options.

In any case, with double closing, you buy the property at the price you and the seller agreed upon beforehand, and then afterward, you sell it to your end buyer .

Sometimes, double closing can even happen on the same day if you time it right!

This means, the seller and the end buyer ultimately never have to meet. They may not even be aware of the other party, so you don't have to worry about protecting your profits from the scrutiny of either party, and no one would walk away from the transaction feeling ripped off .

That's not to say wholesaling is essentially ripping off people, not at all!

You put together the deal, you connected a motivated buyer with an all cash buyer , of course you deserve just compensation for your efforts in the form of an assignment fee. Sellers walk away with the cash to start anew, and the real estate investors gain a property they intend to make money off on.

Everybody wins!

The downside to double closing versus a real estate assignment contract is having to pay the closing costs twice . This is because ownership is transferred to you, regardless of how brief it is.

And it isn't just the cost that is doubled, you also double the paperwork !

If you figure that a double close is not for you, then you're better off doing a real estate assignment contract. That way, you're able to collect your fee without paying a cent in closing costs!

Final Thoughts: Assigning Contracts In Real Estate

Now that you have perfected your real estate contract, you feel like you're ready to embark on your first wholesale deal.

The first step that you need to take is to find the right investment property. The typical criteria are as follows:

  • must be in a good location;
  • must have a good future prospect of urban development (hello, land appreciation!); and,
  • must be selling at a discount.

While it may sound like a tall order, with Property Leads , we can help you find the property you're looking for!

We are the only pay-per-lead platform that uses SEO to generate the motivated seller leads that has the highest chances of conversion. This means you need to talk to fewer sellers but you'll end up closing more, resulting in more profits for you!

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assign contract real estate

assign contract real estate

Real Estate Contracts

What is an assignment contract.

Assignment contracts are a vehicle used by real estate investors to transfer one party’s rights and obligations under an existing real estate contract to another party. Assignment contracts don’t involve transferring or selling the property directly like a purchase agreement. Instead, the buyer under the original purchase agreement (the assignor) assigns their rights and obligations under the purchase agreement to the assignee, sometimes for a profit. The assignee then becomes the buyer under the original real estate contract.

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When Is an Assignment Contract Used?

In one scenario, a type of real estate investor called a wholesaler contracts with the current owner(s) of a distressed property that may be unsellable to average homebuyers. The wholesaler creates a purchase agreement with that owner to buy their property. The wholesaler then finds an end buyer who wants to take possession of the property. The assignment contract is then created to transfer the wholesaler’s rights and obligations under the original purchase agreement to the end buyer.  

Elements of an Assignment Contract

  • Assignor : the real estate wholesaler. This is the person who is the buyer under the original purchase agreement and who is selling or transferring their rights and obligations under that contract. 
  • Assignee : the end buyer. This is the person who is purchasing or receiving the assignor’s rights and obligations under the original purchase agreement and who would ultimately pay the purchase price (plus any assignment fee agreed to in the assignment contract) and take possession of the property. 
  • Description or identification of contract being assigned:  a description of the original purchase agreement being assigned. Oftentimes, the assignment contract will also attach the original purchase agreement or state that it has been provided to the assignee.   
  • Subject property information: the property address, legal description, or property identification number/parcel number for the property that is the subject of the original purchase agreement.  
  • Assignment earnest money amount:  like with other types of real estate contracts, earnest money shows the assignee is a serious buyer. The money helps ensure that the assignee won’t back out of the deal for frivolous reasons. 
  • Assignee’s purchase amount: the amount the end buyer agrees to pay that fulfills or exceeds the original purchase agreement amount. 
  • Assignment fee: the amount of money the assignor will make for finding an end buyer. The assignment fee should be clearly set forth in the assignment contract.
  • Name of the company holding escrow : the assignment contract will designate what company is holding escrow.  This escrow company should match the escrow company listed in the original purchase agreement or you will need an amendment to the original purchase agreement or, in states where it is permissible, a split escrow.  
  • Closing date: the date by which the transaction should be finalized. This should correspond to the original purchase agreement’s closing date. If a different date is used, an amendment to the original purchase agreement may be required.  
  • How assignment earnest money is handled : should one party cancel the contract or fail to meet the contractual obligations, the earnest money may either be forfeited by the assignee or returned. In instances of a dispute between the parties, the third party holding escrow may release the assignment earnest money pursuant to the terms and conditions of the assignment contract.

Writing a comprehensive assignment contract is a vital part of several real estate investing strategies. If you’re new to creating these kinds of contracts, be sure to get some legal advice before moving forward. Once you have a solid assignment contract template in place,  transactions using this contracting tool will run more smoothly. 

* The information provided on this site does not, and is not intended to, constitute legal, financial, tax, or real estate advice. Please consult your expert for advice in those areas. All content is for general informational purposes only and is not intended to provide a complete description of the subject matter. Although Blueprint provides information it believes to be accurate, Blueprint makes no representations or warranties about the accuracy or completeness of the information contained on this site. Specific processes will vary based on applicable law. The title and closing process will be handled by a third-party attorney to the extent required by law. Product offerings vary by jurisdiction and are not available or solicited in any state where we are not licensed.

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An assignment clause (AC) is an important part of many contracts, especially for real estate. In this article we discuss:

  • What is an Assignment Clause? (with Example)
  • Anti-Assignment Clauses (with Example)
  • Non-Assignment Clauses
  • Important Considerations
  • How Assets America ® Can Help

Frequently Asked Questions

What is an assignment clause.

An AC is part of a contract governing the sale of a property and other transactions. It deals with questions regarding the assignment of the property in the purchase agreement. The thrust of the assignment clause is that the buyer can rent, lease, repair, sell, or assign the property.

To “assign” simply means to hand off the benefits and obligations of a contract from one party to another. In short, it’s the transfer of contractual rights.

In-Depth Definition

Explicitly, an AC expresses the liabilities surrounding the assignment from the assignor to the assignee. The real estate contract assignment clause can take on two different forms, depending on the contract author:

  • The AC states that the assignor makes no representations or warranties about the property or the agreement. This makes the assignment “AS IS.”
  • The assignee won’t hold the assignor at fault. It protects the assignor from damages, liabilities, costs, claims, or other expenses stemming from the agreement.

The contract’s assignment clause states the “buyer and/or assigns.” In this clause, “assigns” is a noun that means assignees. It refers to anyone you choose to receive your property rights.

The assignment provision establishes the fact that the buyer (who is the assignor) can assign the property to an assignee. Upon assignment, the assignee becomes the new buyer.

The AC conveys to the assignee both the AC’s property rights and the AC’s contract obligations. After an assignment, the assignor is out of the picture.

What is a Lease Assignment?

Assignment Clause Example

This is an example of a real estate contract assignment clause :

“The Buyer reserves the right to assign this contract in whole or in part to any third party without further notice to the Seller; said assignment not to relieve the Buyer from his or her obligation to complete the terms and conditions of this contract should be assigning default.”

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Assignment provision.

An assignment provision is a separate clause that states the assignee’s acceptance of the contract assignment.

Assignment Provision Example

Here is an example of an assignment provision :

“Investor, as Assignee, hereby accepts the above and foregoing Assignment of Contract dated XXXX, XX, 20XX by and between Assignor and ____________________ (seller) and agrees to assume all of the obligations and perform all of the duties of Assignor under the Contract.”

Anti-Assignment Clauses & Non-Assignment Clauses

An anti-assignment clause prevents either party from assigning a contract without the permission of the other party. It typically does so by prohibiting payment for the assignment. A non-assignment clause is another name for an anti-assignment clause.

Anti-Assignment Clause Example

This is an anti-assignment clause example from the AIA Standard Form of Agreement:

” The Party 1 and Party 2, respectively, bind themselves, their partners, successors, assigns, and legal representatives to the other party to this Agreement and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of this Agreement. Neither Party 1 nor Party 2 shall assign this Agreement without the written consent of the other.”

Important Considerations for Assignment Contracts

The presence of an AC triggers several important considerations.

Assignment Fee

In essence, the assignor is a broker that brings together a buyer and seller. As such, the assignor collects a fee for this service. Naturally, the assignor doesn’t incur the normal expenses of a buyer.

Rather, the new buyer assumes those expenses. In reality, the assignment fee replaces the fee the realtor or broker would charge in a normal transaction. Frequently, the assignment fee is less than a regular brokerage fee.

For example, compare a 2% assignment fee compared to a 6% brokerage fee. That’s a savings of $200,000 on a $5 million purchase price. Wholesalers are professionals who earn a living through assignments.

Frequently, the assignor will require that the assignee deposit the fee into escrow. Typically, the fee is not refundable, even if the assignee backs out of the deal after signing the assignment provision. In some cases, the assignee will fork over the fee directly to the assignor.

Assignor Intent

Just because the contract contains an AC does not obligate the buyer to assign the contract. The buyer remains the buyer unless it chooses to exercise the AC, at which point it becomes the assignor. It is up to the buyer to decide whether to go through with the purchase or assign the contract.

Nonetheless, the AC signals the seller of your possible intent to assign the purchase contract to someone else. For one thing, the seller might object if you try to assign the property without an AC.

You can have serious problems at closing if you show up with a surprise assignee. In fact, you could jeopardize the entire deal.

Another thing to consider is whether the buyer’s desire for an AC in the contract will frighten the seller. Perhaps the seller is very picky about the type of buyer to whom it will sell.

Or perhaps the seller has heard horror stories, real or fake, about assignments. Whatever the reason, the real estate contract assignment clause might put a possible deal in jeopardy.

Chain of Title

If you assign a property before the closing, you will not be in the chain of title. Obviously, this differs from the case in which you sell the property five minutes after buying it.

In the latter case, your name will appear in the chain of title twice, once as the buyer and again as the seller. In addition, the latter case would involve two sets of closing costs, whereas there would only one be for the assignment case. This includes back-to-back (or double) closings.

Enforceability

Assignment might not be enforceable in all situations, such as when:

  • State law or public policy prohibits it.
  • The contract prohibits it.
  • The assignment significantly changes the expectations of the seller. Those expectations can include decreasing the value of the property or increasing the risk of default.

Also note that REO (real estate owned) properties, HUD properties, and listed properties usually don’t permit assignment contracts. An REO property is real estate owned by a bank after foreclosure. Typically, these require a 90-day period before a property can be resold.

How Assets America Can Help

The AC is a portion of a purchase agreement. When a purchase involves a commercial property requiring a loan of $10 million or greater, Assets America ® can arrange your financing.

We can finance wholesalers who decide to go through with a purchase. Alternatively, we can finance assignees as well. In either case, we offer expedient, professional financing and many supporting services. Contact us today for a confidential consultation.

What rights can you assign despite a contract clause expressly prohibiting assignment?

Normally, a prohibition against assignment does not curb the right to receive payments due. However, circumstances may cause the opposite outcome. Additionally, prohibition doesn’t prevent the right to money that the contract specifies is due.

What is the purpose of an assignment of rents clause in a deed of trust and who benefits?

The assignment of rents clause is a provision in a mortgage or deed of trust. It gives the lender the right to collect rents from mortgaged properties if the borrower defaults. All incomes and rents from a secured property flow to the lender and offset the outstanding debt. Clearly, this benefits the lender.

What is in assignment clause in a health insurance contract?

Commonly, health insurance policies contain assignment of benefits (AOB) clauses. These clauses allow the insurer to pay benefits directly to health care providers instead of the patient. In some cases, the provider has the patient sign an assignment agreement that accomplishes the same outcome. The provider submits the AOB agreement along with the insurance claim.

What does “assignment clause” mean for liability insurance?

The clause would allow the assignment of proceeds from a liability award payable to a third party. However, the insured must consent to the clause or else it isn’t binding. This restriction applies only before a loss. After a first party loss, the insurer’s consent no longer matters.

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Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

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  • Dec 13, 2023

Understanding Assignment of Contract in Real Estate Wholesaling

Real estate wholesaling is a popular strategy for new investors who want to get their feet wet. The term "wholesaling" refers to the process of buying homes and reselling them quickly without making any significant repairs. One crucial aspect of this strategy is the assignment of contract, which allows the wholesaler to profit from the transaction without ever owning the property.

What is Assignment of Contract?

In simple terms, an assignment of contract in real estate is a legal agreement that allows the investor (or 'assignor') to transfer their rights and obligations of the property purchase contract to another party (or 'assignee'). This means that the assignee steps into the shoes of the assignor and completes the transaction with the original seller.

The assignor's primary role is to find a motivated seller, negotiate a purchase price, and then find a buyer willing to pay a higher price for the property. The difference between the contract price with the seller and the amount paid by the end buyer is the wholesaler's profit.

How Does it Work?

Here are the basic steps involved in an assignment of contract:

1. Find a Motivated Seller: The first step is to find a homeowner who wants to sell their property quickly. This could be due to various reasons such as financial distress, job relocation, divorce, or a need to liquidate assets.

2. Negotiate a Purchase Price: Once a motivated seller is identified, the wholesaler negotiates a purchase price and signs a purchase agreement with the seller. This agreement includes an "assignment clause" which gives the wholesaler the right to assign the contract to another buyer.

3. Find an End Buyer: The wholesaler then finds an end buyer who is willing to buy the property at a higher price. This could be a rehabber looking for a fix-and-flip opportunity, or a landlord seeking rental properties.

4. Assign the Contract: The wholesaler then executes an assignment agreement with the end buyer, transferring all rights and obligations of the original contract to them. The assignee pays an assignment fee to the wholesaler, which is typically the difference between the original purchase price and the price the end buyer agrees to pay.

5. Close the Deal: Finally, the deal is closed with the help of a title company or attorney. The original seller receives the agreed-upon price from the original contract, the end buyer gets the property, and the wholesaler walks away with the assignment fee.

How to Fill Out an Assignment of Contract

Download the Assignment of Contract for Free

REIPro is a comprehensive tool for real estate investors that not only provides essential contracts like the Assignment of Contract but also includes detailed training videos. With REIPro's Contract Writer, users can easily fill in the blanks to customize their documents and then download, print, or email them as needed. This platform makes it simpler for investors to understand and implement complex strategies such as contract assignments in real estate wholesaling. Click here to access the Assignment of Contract.

Legalities and Ethics

While the assignment of contract is a legitimate real estate strategy, it's not without controversy. Some people view wholesalers as middlemen who profit without adding value. However, ethical wholesalers can provide a valuable service by connecting motivated sellers with investors.

It's also important to note that the legality of contract assignment can vary by state. In some jurisdictions, you may need a real estate license to wholesale properties. Therefore, it's crucial to understand your local laws and regulations before getting started.

In conclusion, assignment of contract is a powerful tool in real estate wholesaling. It allows investors to profit from real estate transactions without needing to buy, own, or repair properties. As with any investment strategy, education and due diligence are vital to success.

Remember, the goal is to create win-win situations for all parties involved: a quick sale for the distressed seller, a good deal for the end buyer, and a fair profit for the wholesaler. 

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Assignment Of Purchase And Sale Agreement

Jump to section, what is an assignment of purchase and sale agreement.

An assignment of purchase and sale agreement is a real estate transaction contract that defines the parties and terms of a real estate purchase. This agreement allows the original purchaser of a property to transfer or assign their rights in the deal to a third party. This agreement is often used in flipping houses.

Assignment of purchase and sale agreements allows the purchaser to take their rights and obligations under a purchase agreement and reassign them to a third party who will take on those responsibilities. Some contracts may have clauses that prohibit assignment or allow it under specific circumstances usually laid out in the agreement.

Common Sections in Assignment Of Purchase And Sale Agreements

Below is a list of common sections included in Assignment Of Purchase And Sale Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Purchase And Sale Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.1.1 2 d245573dex1011.htm ASSIGNMENT OF PURCHASE AND SALE AGREEMENT , Viewed October 18, 2021, View Source on SEC .

Who Helps With Assignment Of Purchase And Sale Agreements?

Lawyers with backgrounds working on assignment of purchase and sale agreements work with clients to help. Do you need help with an assignment of purchase and sale agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignment of purchase and sale agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

Meet some of our Assignment Of Purchase And Sale Agreement Lawyers

Craig M. on ContractsCounsel

I have been practicing law for more than 7 years in Maine and have owned my law practice, Dirigo Law LLC, since 2020. My practice focuses mostly on Real Estate / Corporate transactions, Wills, Trusts, and Probate matters.

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How to Control the Contract with And Or Assigns in Real Estate Deals

There are three dynamic words that you can use in your real estate transactions that will give you many more options than you ever thought possible. These three words are “ and or assigns ”. Another way to write it out more fully is “ its successors and or assigns ” but either way gives you all the control over the contract.

It is very amazing what these few little words can do for you when you are investing in real estate.

Here is what you can write next to your name in a contract to allow you to control the contract:

  • John Doe and its successors and or assigns
  • John Doe and its successors and/or assigns
  • John Doe and or assigns
  • John Doe and/or assigns

When you enter into a contract to buy real estate as a buyer, the contract usually has your name as the buyer and the seller’s name as the seller.

This is to be able to assignment of contract in real estate transactions.

This contract enters you and the seller into an agreement that you will be buying the property from the seller at a given price. Your only option is for you to go through with the purchase of the property yourself.

Listen to the Its Successors And Or Assigns Podcast here:

Now if you add ” its successors and or assigns ” after your name as the buyer, your options have just increased greatly in what you can do with the contract and property.

A contract with “ its successors and or assigns ” after your name as the buyer.With the phrase “ and or assigns ” added to your name as the buyer, you are basically saying:

The buyer reserves the right to lease, rent, repair, assign to someone else, or sell the property for a profit.

Specific language to use in the assignment of contract in real estate for or against “ its successors and or assigns ”.

If you wanted to be much more specific, you could add this as a clause to your contract:

“The Buyer reserves the right to assign this contract in whole or in part to any third party without further notice to the Seller; said assignment not to relieve the Buyer from his or her obligation to complete the terms and conditions of this contract should be assigning default.”

Watch the And/Or Assigns Lesson Here: 

If you are the seller and you do NOT want the buyer to be able to assign the contract by using “its successors and or assigns “, you can put this in the language of the contract:

“The Buyer agrees not to assign this contract in whole or in part to any third party.”

Current Deal With Its Successors And Or Assigns

The most recent property that I entered into a contract for purchase came with a contract just like this.

I am currently in the escrow process for this property in I will hopefully close very soon.

Because I am a buy-and-hold investor , I usually am in the receiving end of an assignment contract. The person I am receiving the assignment from will make $2000 from the assignment of the contract to me.

So basically I am paying the whole seller who found the property $2000 for finding the property and assignment of contract in real estate to me.

Some people may be concerned that they are paying $2000 to someone for assigning a contract but I don’t personally care. Obviously I like to spend as little money as possible on a property but without this wholesaler assigning the contract to me, I would not have found this terrific property.

This one property will make me $500 in passive income each month after expenses so I am totally fine with paying someone $2000 for the contract of the property.

Now that I explained how I have used it in the past, let me give you the pros and cons for using “ and or assigns ” in your contracts.

Pro's and Con's for Its Successors And or assigns

Gives you control over the contract and property.

When you enter into a assignment of contract in real estate without “ its successors and or assigns ” your only option is for you to purchase the property as the contract states.

You cannot get a third party involved in the deal with you. You also are not able to assign the contract to a third-party for a fee as in the case stated above.

By adding “ its successors and or assigns ” after your name as the buyer, you now have the rights to lease , rent , repair, assign, or sell the property for profit.

You can even go through with the purchase as originally intended with you is the buyer and not do any assigning.

You Get Paid An Assignment Fee as the Broker of the Deal

If you are the assigning party, you add a fee into the transaction so you get paid as the dealmaker between the seller and buyer.

There are no added expenses on your end because you are getting paid a fee that is specified in the contract, and agreed to by the seller and buyer.

If you find a property that a sellers willing to sell the property for $100,000, you turn around and market it for sale to an investor for $110,000, the difference is yours as an assignment fee.

Depending on what the buyer and seller agree with you is an adequate assignment the, you could make a lot of money.

Informs the Seller of Your Intent to Purchase the Property Yourself

The contract itself is stating to the seller your intent to purchase the property. Just because you put “ its successors and or assigns ” does not mean that you will not follow through with the purchase of the property yourself.

It does not lock you into assigning to a third party.

You can still go through with the purchase yourself.

Informs the Seller of Your Intent to Possibly Assign the Contract to Somebody Else for a Profit

Honesty and transparency is always the best policy in all business dealings.

If it is even a possibility that you may assign a contract to someone else, it would be wise to let the seller know ahead of time by putting in the phrase “ its successors and or assigns ” into your contract.

The last thing you want is for you to go to the closing of escrow on a property you are purchasing and have problems.

Not informing the seller ahead of time your intent to assign the contract to someone else may cause major problems with the seller if feel they were misled or deceived.

This will greatly hinder the assignment of contract in real estate.

You Can Make Money as the Broker of the Deal with Another Buyer

As in the case stated above with my most recent property, the person assigning me the contract is making $2000 on this one transaction.

It is not uncommon for wholesalers to make anywhere from $1500-$5000 on an assignment of a contract to an investor.

I personally don’t mind paying an assignment fee as long as the numbers work out well for the property. I make sure that the numbers work in my favor even with the assignment fee.

So if I see a property I want to buy as a rental, I run all my numbers first to make sure it will be a good investment and subtract the assignment fee.

This is basically making the seller pay for the assignment fee and not myself.

Even if it were myself paying the assignment fee, as long as the numbers add up in my favor, I will still pay the assignment fee without hesitation.

If you think about it, you would already pay a realtor 3% for representing you as your agent.

Either way you are still paying for someone to help facilitate the transaction unless you find the seller yourself.

You Will not be in the Chain of Title

When any change of ownership is done on a property, the recorder’s office of your local county records the name of who held ownership.

If you buy a property and then sell it five minutes later, there will be two recorded documents for the assignment of contract in real estate.

The first document will be your purchase from the seller and the second would be your sale to a buyer.

Here is what it would look like:

Transaction 1 : Seller John Doe  to  Buyer Joe Smith Transaction   2 : Seller Joe Smith  to  Buyer Matt Jones

The chain of title now holds Joe Smith as a previous owner.  This is not necessarily a bad thing; it is just something else to take note of.

Less Money for Buyer and Seller Since No Realtors are Involved

Depending on how much the assignment fee is and the purchase price of the property, an investor can save lots of money going through a wholesaler within assignment fee.

If you purchase a property for $300,000 and use a realtor, more than likely you will be charged 3% for the realtor representing you as the buyer’s agent.

There also be another 3% the seller has to pay to his realtor as the seller’s agent. That would be a total of 6% being paid as realtor fees.

$300,000 X 6% = $18,000

If you used a realtor for this deal, $18,000 would go to them. A wholesaler’s transaction fee of $5000 does not sound all that bad. You are actually saving lots of money by paying a transaction fee instead of using realtor.

One Set of Closing Costs Instead of Two

If you bought whenever you purchase a property, there are a lot of expenses that are incurred which are called closing costs.

When you look at the HUD statement of a property are purchasing, you will see many expenses that the title company charges as well as the county government charges for the transaction.

Here are some charges you will most likely see in your transaction:

  • Settlement or closing fee
  • Abstract or title search
  • Title examination
  • Title insurance binder
  • Outside closing fee
  • Title insurance
  • Attorney’s fees
  • Lender’s coverage
  • Owner’s coverage
  • Shipping or overnight fee
  • Wire transfer fee
  • Recording fees
  • Government taxes

By assigning a contract there is only one transaction and all of these fees are only paid one time. If you go through with two transactions you are basically doubling the costs involved because you are having two closings back to back.

Down sides to Its Successors And/Or Assigns

Most people don’t know what its successors and or assigns means and can get scared off.

Most people you encounter are not real estate investors. They do not understand what you do about real estate. They do not know real estate is really all about the numbers .

If the property value, expenses, price, rents, etc. all line up to be a good investment property, it is a good investment for you to buy.

Home owners are not investors. They do not understand that a house is just an investment to you. They get emotionally tied to “Their” house and become “emotionally invested” in the house.

Since you are an objective third party who is looking to profit off “their” house, they may get upset and view you as an enemy who is taking advantage of them.

The best way around this is to address their “Need” for selling the property. Maybe they “need” to sell the property because they are moving to another state and need the money to purchase a new home.

Focus your conversation on how “ its successors and or assigns ” will allow you to help them accomplish their move in the assignment of contract in real estate.

You are going to be working for them finding the best person to help them out of their situation. Being there for them and you are going to take care of their problem.

You May Have to Educate the Buyer and Seller what assignment of contract in real estate Is and Is Not

Since most home owners are not investors, you may have to educated the seller on what “its successors and/or assigns ” means for you as the buyer AND them as the seller.

This may take some time to “convince” the seller that by using “ its successors and or assigns ” in your contract will allow you to accomplish the goal of helping them to sell their house.

Explain that “its successors and or assigns ” will:

  • Take care of their need to sell the property
  • Save them money
  • Allow you to go to work for them
  • Give you the ability to structure a deal that will best suit their need of selling the property
  • Already have an agreed upon price that is going to the seller
  • Not change the contract you already have signed with them

Explain that “its successors and or assigns ” will not:

  • Take money from them out of the deal
  • Make them “lose” their property
  • Is not going to take advantage of them
  • Not destroy the property that they love
  • Have hidden costs, fees, etc. because everything is disclosed in the beginning

Bank Owned Properties Usually Will Not Accept an Offer with “ And/Or Assigns ”

Banks seem to always put in their contracts the “not assignable” verbiage to prevent assignments of the contracts. I have yet to purchase a house from a bank that allows a buyer to assign the contract, whole or in part, to a third party.

If Your Buyer Who you are Signing the Property You Backs Out, It Looks Bad on YOU As An Investor

Usually investors know other investors who are interested in buying real estate. If you are a wholesaler, you should have a “Buyers” list. This is a list of investors that are ready to purchase property that fit their criteria.

I am on many wholesalers “Buyers” list all across the country. Because I purchase so many properties, I look for deals everywhere I can.

A problem may arise if you as the wholesaler sets up an assignment deal with a home owner and an investor and the deal has problems. It is your name on the line as the broker of the transaction between the two parties.

For example: A seller needs the home sold by July 15 th so they can move onto purchase their next home.

The closing date you set up with the seller and the investor is the 15 th of July and everything is moving along just fine.

On the 15 th , the investor has trouble wiring the money to the escrow company and the deal is delayed.

The seller is now having problems with purchasing their new house and are not able to proceed because the sale does not go through on their old one.

This looks bad on you as the broker of the deal.

Also, if the problem is with the seller, the investor that you are working with may not buy through you again because you caused problems with this deal and they don’t want to use you anymore.

Real estate is a people business. If your name in the business is a bad one, you will not be able to last long because people will not trust you.

You are Still on the Hook for the Contract

In the example above, if your investor does not follow through with the purchase, you are now liable for the purchase of the property.

The contract with you and your seller are still in force and they can come after you for breach of contract.

At least, your earnest money you put down for the property will go to the seller.

The Buyer and Seller May Question How Much Money You Are Making in the Deal

This will most likely come up. Not usually from the investor because as long as the numbers line up it will still be a good deal to move forward with.

The seller on the other hand may be upset that you are making money that “Should” be theirs. In reality, this is not the case. You are basically acting as the agent brokering a sale.

Much like a realtor, you are helping them find a buyer for their property.

The best way to show them they are benefiting from this transaction, show them how much it would cost if they were to go through a realtor.

Show them realtors will take 6% from the deal and you are only taking a small portion of that in the assignment of contract in real estate.

**What Happens When You Get Stuck With A Contract?**

Also, if you do use the “ its successors and/or assigns ” in your assignment of contract in real estate, you are not stuck with a contract. There are many options for a good property with a good contract that you can assign.

I get asked this question all the time. “What can you do if you can't assign a contract”?

This does sound scary, that you are forced to buy a house…

But this is totally not the case. I wrote an extensive article on what to do with the contract you already have. You can check it out here :

How have you seen “ its successors and/or assigns ” in your real estate dealings?

Leave me a comment below to share how you have used its successors and/or assigns to make money in real estate.

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An Investor’s Guide To Real Estate Contract Flipping

assign contract real estate

What is real estate contract flipping?

How to flip real estate contracts

Pros & cons of contract flipping

How much can you make contract flipping?

A great way for new investors to get started in the industry is by learning how to flip real estate contracts . With a relatively low level of risk, the barrier to entry, and cost, flipping real estate contracts awards new investors with the path of least resistance. Nonetheless, despite the relative ease of execution associated with contract assignment, there is still an evident margin of error one must consider before one can partake in the strategy themselves. Therefore, it’s important for investors who want to flip contracts to educate themselves on the subject matter; only then will they realize success on a higher level.

What Does Flipping Real Estate Contracts Mean?

Flipping real estate contracts is just another way of assigning contracts—or wholesaling real estate using the assignment contract—the two are entirely interchangeable.

As a wholesale strategy, real estate contract flipping serves as a way for investors to act as intermediaries between sellers and end buyers. However, instead of acquiring the subject property, the investor flipping the contract (the wholesaler) will enter into an agreement with the original owner, giving them the right to buy the property later.

That’s an important distinction to make: the original owner isn’t selling the home but rather awarding the investor the rights to buy the home. Today’s wholesalers sign a contract that says they have the right to purchase the property in return for what is typically referred to as “equitable interest” in the home.

Next, I’ll discuss the 7 steps to flipping a real estate contract.

how to flip real estate contracts

How To Flip Real Estate Contracts In 7 Steps

Flipping real estate contracts has become synonymous with perhaps the simplest investment strategy in the entire housing industry: wholesaling. However, make no mistake about it: the “simple” moniker is applied loosely. Not unlike every form of real estate investing, even simple real estate contracts come with an inherent degree of risk. Therefore, to increase your odds of realizing success, one must exercise due diligence and follow the steps outlined below:

Find A Property

Contact The Owner

Determine The Property Value

Write Up The Contract

Get It Approved

Find An End Buyer

Close On The Property

Step 1: Find A Property

Flipping real estate contracts starts with finding the right property. Not only will investors need to find a desirable home, but they will also need to work with those willing to go through the assignment contract process, specifically, motivated sellers. At the very least, motivated sellers are just that: motivated. Whether they face foreclosure or need to move for work, people who are motivated to sell represent a great opportunity. Investors should prioritize homes owned by those who need to sell—not those who want to sell. Doing so will increase the likelihood of a deal being brought to the closing table or (in this case) entering into an agreement on a basic real estate contract.

In searching for a viable candidate, there are several strategies for investors to consider. Investors should look in two places if they want to find distressed homeowners: their local courthouse and list providers.

Take a trip to the local courthouse and browse recent lis pendens or notice of default filings. As it turns out, delinquent mortgages are public knowledge and can be viewed by anyone who knows how to find them. With a little due diligence and patience, investors may be able to compile a list of nearby homes whose owners are motivated to sell for one reason or another.

Investors who would rather pay for someone else to do the legwork can purchase a list of delinquent homeowners. These lists (which can be bought online) are often created using the same documents at the courthouse.

Step 2: Contact The Owner

During your property search, you will hopefully come into contact with information on the owner. Typically, court records, property deeds or titles, and tax records will be public information. These documents can lead you to the person’s name. From there, you can either attempt to search for their phone number or you can come up with a plan to knock on the door during the day.

When you get in touch with the property, be polite and introduce yourself and your real estate business. Inquire about the property and whether they are interested in selling the home at this time. It is not uncommon for property owners to be hesitant or nervous to speak about selling the property, just think about how you would react in their position. Attempt to find common ground and leave them with your contact information to reach back out with additional questions or when they are ready to move forward.

Step 3: Determine Property Value

The key to flipping real estate contracts is securing homes under market value. After all, the sale price is what will make the property most attractive to the end buyer. Determine the market value of the home before securing the property by analyzing comparable homes in the area. Review properties with a similar square footage, number of bedrooms and bathrooms, and with similar amenities. Get an idea for the average selling price and time on market.

Each of these characteristics will help you determine the viability of the property as an investment. When you are trying to assign the final contract to house flippers, these details are especially critical. Without the right sale price you, and your end buyer, will not be able to maximize your profits from the deal. Utilize online research, local real estate agents, and more as you determine the property value of your potential investment.

Step 4: Write Up The Contract

Once investors find a home that exhibits all of a good wholesale deal’s characteristics, the next step is to negotiate contract terms with the homeowner. Provided they are ready and willing to sell; the idea is to negotiate an assignment of contract. That said, there’s no universal contract that will work for every negotiation. Instead, investors will need to tailor the impending contract to meet both the homeowner’s intentions and their own.

The verbiage of the contract between each party is of critical importance. There should be no room for interpretation or ambiguity. The act of assigning a contract needs to be purposeful and deliberate. All purchase and sale agreements, by default, can be sold to another party unless specifically stated otherwise. It is essential to make sure the contract states the investor’s exact intentions. Hire an attorney versed in these types of real estate transactions to ensure ensuing discussions go smoothly.

Step 5: Get It Approved

Once drafted, the contract must receive approval from both parties. After all, even the most basic real estate contracts represent an agreement on behalf of each individual. Of course, that means investors will need to draft a contract that appeases sellers—that’s where the motivation comes into play. If an investor can identify the seller’s motivation, they may be able to write a contract that is simultaneously attractive to the seller and beneficial for the impending wholesale deal.

Provided each person involved in the deal agrees to the terms, it’s time to sign the contract. According to the doctrine of equitable conversion, once a real estate purchase agreement is signed by all parties and becomes effective, the buyer becomes the equitable owner, and the seller retains bare legal title to the property under the previously agreed-upon terms.

Step 6: Find A Buyer

Today’s best contract flipping investors begin with the end in mind. More specifically, they’ll have a buyer lined up before they even sign a contract with a seller. That way, they’ll already know how the deal is expected to unfold. Most wholesalers, for that matter, compile what’s known in the industry as a buyers list. As its name suggests, a buyers list is a list of potential buyers. Wholesalers may consult such a list to identify anyone interested in buying a home and assign them the contract from the impending deal. A properly curated buyers list could facilitate an assignment of contact in as little as a few hours.

Step 7: Close On The Property

Once you have identified an end buyer, it’s time to close the deal officially. Connect the buyer with a title company experienced in wholesale deals, and wait for the title search to be completed. The title search with pull information on any potential ownership disputes or tax liens. Within a week, you should know whether the final sale can go through. The title company will then draft the final contract with the buyer and official seller, marking the end of your role as a wholesaler in the transaction. At that point, you can accept payment for your work via wire transfer or check.

sell real estate contract

Pros & Cons Of Real Estate Contract Flipping

Before you decide to get started in real estate contract flipping, you should take time to weigh the pros and cons to figure out if this investment strategy is right for you and your goals.

Benefits Of Real Estate Contract Flipping

Real estate contract flipping presents many attractive investing benefits. One real estate contract flipping benefit is that it does not require much money to get started. That means that there is little risk associated with this opportunity as well. Flipping contracts is a great way to get money in your pocket fast.

Disadvantages Of Real Estate Contract Flipping

Although there is a potential to make money flipping real estate contracts, there are also some drawbacks. One drawback is that creating a large amount of income from flipping real estate contracts will require many deals. This will require investors to spend more time and effort evaluating potential deals. Investors will also be required to spend a significant amount of time compiling their wholesalers list for each deal to be matched with a buyer who is ready to assign the contract. Developing an efficient system for doing so will not happen overnight. Many investors find a drawback in the amount of time it may take to find success with this investing strategy.

How Much Can You Make From Flipping Real Estate Contracts

There is no limit to the amount of money you can make from flipping real estate contracts. However, your income will depend on the amount of work and effort you put into the practice. Wholesaling requires you to sift through numerous deals to find the right contracts to represent — this can take up a significant amount of time, especially while you hone in on your search criteria.

The exact amount of money you make will depend on how well you negotiate contracts with your end buyer. Wholesaler fees are generally the difference between how much the contract costs to buy and how much you can sell it for in the end. This difference can vary from deal to deal. Generally speaking, you can expect each real estate contract sale to generate a few thousand dollars in profit.

Over time, you may succeed in building relationships with other real estate investors in your market. Wholesalers are often invaluable for investors who flip houses, as they don’t always have the time to search for deals. If you play your cards right, you could negotiate minimum fees or per-deal agreements with these investors. This could create a more predictable flow of income, as long as you can find new deals consistently.

If you are interested in an entry-level investing strategy, learning how to flip real estate contracts might be for you. The barrier to entry, in particular, is relatively low. Additionally, assigning a contract is viewed as a relatively risk-averse real estate investment strategy. That said, investors can’t underestimate the process. While easier to grasp than rehabbing, wholesaling must be approached with cautious optimism. Do not let its simplicity get the best of you. Instead, learn how to flip real estate contracts with a proven system. Understanding the contract assignment process is the best way to mitigate risk and realize success.

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Posted 2024-02-25 14:19

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$1 Subject-to assignment contract for Seattle triplex (Seattle)

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Subject-to assignment contract for Seattle triplex - real estate -...

Assigning a subject-to contract for a Seattle triplex that will cash flow ~$2975 per month if all units are rented (two of three currently rented). With 30% expense ratio cap rate is ~6%. Cash...

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  1. What Is An Assignment of Contract?

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  2. Purchase Assignment Agreement. FREE 10+ Assignment Agreement Forms in

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  3. FREE 17+ Real Estate Contract Templates in PDF

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  4. Assignment of Contract for Purchase of Real Estate

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  5. Free Sample Real Estate Assignment Contract Template

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  6. Wholesale Agreement to Assign

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  1. How to read a Real Estate Buy and Sale Contract

  2. How to Configure and Assign Contract Price Levels within DecoNetwork

  3. How to do a Real Estate Assignment

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COMMENTS

  1. Assignment of Contract In Real Estate Made Simple

    A real estate assignment contract is a wholesale strategy used by real estate investors to facilitate the sale of a property between an owner and an end buyer. As its name suggests, contract assignment strategies will witness a subject property owner sign a contract with an investor that gives them the rights to buy the home.

  2. A Guide to Assignment of Contract in Real Estate

    Business A Guide to Assignment of Contract in Real Estate Written by MasterClass Last updated: Jul 13, 2021 • 4 min read Assignment of contract involves one party transferring the rights of a real estate purchase agreement to another party.

  3. What Is An Assignment Of Contract In Real Estate?

    An assignment of contract in real estate is when the original party who has a piece of real estate transfers their contractual obligations to that of a new party. Assigning real estate contracts is a common way to "flip" real estate without having to come out of your pocket with any capital.

  4. Assignment of Contract

    Assignment of real estate purchase and sale agreement, or simply assignment of agreement or contract, is a real estate wholesale strategy that facilitates a sale between the property owner and the end buyer. This strategy is also known as flipping real estate contracts because that's essentially how it works:

  5. Assigning Real Estate Contracts: Everything You Need to Know

    Updated July 10, 2020: Assigning real estate contracts refers to a method of earning money from buying and selling real estate. You find a seller who is eager to sell their property at a price that is far below its market value. Then, you find a buyer willing to pay a higher price for it. How Contract Assignment Works

  6. Real Estate Assignment Contract: What Investors Need to Know

    Real Estate Assignment Contract: What Investors Need to Know Learn what a real estate assignment contract is, how to use it, and what the benefits are. Discover how you can leverage assignment contracts to make a profit.

  7. Real Estate Assignment of Contract Explained

    Assignment of contract in real estate takes place when the original party (assignor) transfers the contractual rights and obligations to a new party (assignee). The assignee, who is the recipient of the assignment, assumes the rights and duties outlined in the contract.

  8. Real Estate Assignment Of Contract Explained: Basics ...

    9 2.8K views 7 months ago #benefits #realestateinvesting #risks Learn the essentials of real estate contract assignment, its benefits, risks, and legal implications, to help you navigate...

  9. What Is an Assignment in Real Estate?

    What Does it Mean to Assign a Contract in Real Estate? Contract assignment is a common wholesaling strategy where the seller and the wholesaler (acting as a middleman in this case) sign an agreement giving the wholesaler the sole right to buy a property at a specified price, within a certain period of time.

  10. Real Estate Contract Assignment and What You Need to Know

    There are three types of real estate contract assignment. In this case the investor "B" would be the Assignor and the "C" buyer would be the Assignee. 1. Buyer may assign the contract but not be held liable for what the Assignee does or doesn't do with regard to the terms of the contract. 2.

  11. Assignment of Contract in Real Estate [And Or Assigns]

    An assignment clause in a purchase and sale agreement in real estate gives the original buyer (the assigning party) the ability to "assign" or transfer the rights to purchase a property to a new buyer (the assignee). This is done by affixing the phrase "and/or assigns" next to your name in the real estate contract.

  12. Assignment of Contract Real Estate (What it is and What it's Not

    Assignment of Contract Real Estate (What it is and What it's Not!) Investor Life Inc. - Real Estate Investing 2.57K subscribers Subscribe 110 Share 4.6K views 2 years ago ALBERTA...

  13. What is an Assignment Contract?

    Writing a comprehensive assignment contract is a vital part of several real estate investing strategies. If you're new to creating these kinds of contracts, be sure to get some legal advice before moving forward. Once you have a solid assignment contract template in place, transactions using this contracting tool will run more smoothly.

  14. Free Real Estate Assignment Contract

    A real estate assignment contract allows a real estate buyer to transfer their purchasing rights and responsibilities to someone else before the closing date. Typically, the new buyer pays a fee to the original buyer for the assignment.

  15. Assignment Clause

    The real estate contract assignment clause can take on two different forms, depending on the contract author: The AC states that the assignor makes no representations or warranties about the property or the agreement. This makes the assignment "AS IS." The assignee won't hold the assignor at fault.

  16. Assignment of Contract: What Is It? How It Works

    Assignment of Contract in Real Estate Who Handles Assignment of Contract? What is an Assignment of Contract? An assignment of contract is a legal term that describes the process that occurs when the original party (assignor) transfers their rights and obligations under their contract to a third party (assignee).

  17. Understanding Assignment of Contract in Real Estate Wholesaling

    In simple terms, an assignment of contract in real estate is a legal agreement that allows the investor (or 'assignor') to transfer their rights and obligations of the property purchase contract to another party (or 'assignee'). This means that the assignee steps into the shoes of the assignor and completes the transaction with the original seller.

  18. What is an Assignment Contract in Wholesale Real Estate?

    An assignment of contract is a transfer of contractual obligations from one party to another. In real estate, an investor makes a deal with a property owner, and then sells the contract to a third party before the home closes. The investor collects an assignment fee for finding the deal. You may have dealt with situations that are similar to an ...

  19. Assignment Of Purchase And Sale Agreement

    An assignment of purchase and sale agreement is a real estate transaction contract that defines the parties and terms of a real estate purchase. This agreement allows the original purchaser of a property to transfer or assign their rights in the deal to a third party. This agreement is often used in flipping houses.

  20. And Or Assigns In A Contract Gives You Control in Real Estate

    Because I am a buy-and-hold investor, I usually am in the receiving end of an assignment contract. The person I am receiving the assignment from will make $2000 from the assignment of the contract to me. So basically I am paying the whole seller who found the property $2000 for finding the property and assignment of contract in real estate to me.

  21. An Investor's Guide To Real Estate Contract Flipping

    Flipping real estate contracts is just another way of assigning contracts—or wholesaling real estate using the assignment contract—the two are entirely interchangeable. As a wholesale strategy, real estate contract flipping serves as a way for investors to act as intermediaries between sellers and end buyers. However, instead of acquiring ...

  22. Assignment of Contracts

    Assignment to a new party of the purchase agreement rights of a buyer is common in both residential and commercial real estate contracts. As previously noted in broker corner articles, the LLC form of ownership offers a number of advantages to owners of investment properties, including limiting the liability of the members.

  23. Assignment of Contract In Real Estate Made Simple

    Want to teaching how to navigate the real-time estate assignment of contract process? Read FortuneBuilders' extensive guide.

  24. Subject-to assignment contract for Seattle triplex

    Assigning a subject-to contract for a Seattle triplex that will cash flow ~$2975 per month if all units are rented (two of three currently rented). ... Perfect opportunity for those looking to invest in true Seattle real estate with an affordable monthly payment!! Please email. Property is zoned for townhomes. I can send pictures and and more ...

  25. Real Estate Investor/ Coach on Instagram: "Life is too short to spend

    100 likes, 7 comments - daryl.nickerson.jr on February 18, 2024: "Life is too short to spend it working a job that doesn't fulfill you. Take a leap of faith and qu..."