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How To Navigate The Real Estate Assignment Contract

assigns definition real estate

What is assignment of contract?

Assignment of contract vs double close

How to assign a contract

Assignment of contract pros and cons

Even the most left-brained, technical real estate practitioners may find themselves overwhelmed by the legal forms that have become synonymous with the investing industry. The assignment of contract strategy, in particular, has developed a confusing reputation for those unfamiliar with the concept of wholesaling. At the very least, there’s a good chance the “assignment of contract real estate” exit strategy sounds more like a foreign language to new investors than a viable means to an end.

A real estate assignment contract isn’t as complicated as many make it out to be, nor is it something to shy away from because of a lack of understanding. Instead, new investors need to learn how to assign a real estate contract as this particular exit strategy represents one of the best ways to break into the industry.

In this article, we will break down the elements of a real estate assignment contract, or a real estate wholesale contract, and provide strategies for how it can help investors further their careers. [ Thinking about investing in real estate? Register to attend a FREE online real estate class and learn how to get started investing in real estate. ]

What Is A Real Estate Assignment Contract?

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. That’s an important distinction to make, as the contract only gives the investor the right to buy the home; they don’t actually follow through on a purchase. Once under contract, however, the investor retains the sole right to buy the home. That means they may then sell their rights to buy the house to another buyer. Therefore, when a wholesaler executes a contact assignment, they aren’t selling a house but rather their rights to buy a house. The end buyer will pay the wholesale a small assignment fee and buy the house from the original buyer.

The real estate assignment contract strategy is only as strong as the contracts used in the agreement. The language used in the respective contract is of the utmost importance and should clearly define what the investors and sellers expect out of the deal.

There are a couple of caveats to keep in mind when considering using sales contracts for real estate:

Contract prohibitions: Make sure the contract you have with the property seller does not have prohibitions for future assignments. This can create serious issues down the road. Make sure the contract is drafted by a lawyer that specializes in real estate assignment contract law.

Property-specific prohibitions: HUD homes (property obtained by the Department of Housing and Urban Development), real estate owned or REOs (foreclosed-upon property), and listed properties are not open to assignment contracts. REO properties, for example, have a 90-day period before being allowed to be resold.

assignment fee

What Is An Assignment Fee In Real Estate?

An assignment fee in real estate is the money a wholesaler can expect to receive from an end buyer when they sell them their rights to buy the subject property. In other words, the assignment fee serves as the monetary compensation awarded to the wholesaler for connecting the original seller with the end buyer.

Again, any contract used to disclose a wholesale deal should be completely transparent, and including the assignment fee is no exception. The terms of how an investor will be paid upon assigning a contract should, nonetheless, be spelled out in the contract itself.

The standard assignment fee is $5,000. However, every deal is different. Buyers differ on their needs and criteria for spending their money (e.g., rehabbing vs. buy-and-hold buyers). As with any negotiations , proper information is vital. Take the time to find out how much the property would realistically cost before and after repairs. Then, add your preferred assignment fee on top of it.

Traditionally, investors will receive a deposit when they sign the Assignment of Real Estate Purchase and Sale Agreement . The rest of the assignment fee will be paid out upon the deal closing.

Assignment Contract Vs Double Close

The real estate assignment contract strategy is just one of the two methods investors may use to wholesale a deal. In addition to assigning contracts, investors may also choose to double close. While both strategies are essentially variations of a wholesale deal, several differences must be noted.

A double closing, otherwise known as a back-to-back closing, will have investors actually purchase the home. However, instead of holding onto it, they will immediately sell the asset without rehabbing it. Double closings aren’t as traditional as fast as contract assignment, but they can be in the right situation. Double closings can also take as long as a few weeks. In the end, double closings aren’t all that different from a traditional buy and sell; they transpire over a meeter of weeks instead of months.

Assignment real estate strategies are usually the first option investors will want to consider, as they are slightly easier and less involved. That said, real estate assignment contract methods aren’t necessarily better; they are just different. The wholesale strategy an investor chooses is entirely dependent on their situation. For example, if a buyer cannot line up funding fast enough, they may need to initiate a double closing because they don’t have the capital to pay the acquisition costs and assignment fee. Meanwhile, select institutional lenders incorporate language against lending money in an assignment of contract scenario. Therefore, any subsequent wholesale will need to be an assignment of contract.

Double closings and contract assignments are simply two means of obtaining the same end. Neither is better than the other; they are meant to be used in different scenarios.

Flipping Real Estate Contracts

Those unfamiliar with the real estate contract assignment concept may know it as something else: flipping real estate contracts; if for nothing else, the two are one-in-the-same. Flipping real estate contracts is simply another way to refer to assigning a contract.

Is An Assignment Of Contract Legal?

Yes, an assignment of contract is legal when executed correctly. Wholesalers must follow local laws regulating the language of contracts, as some jurisdictions have more regulations than others. It is also becoming increasingly common to assign contracts to a legal entity or LLC rather than an individual, to prevent objections from the bank. Note that you will need written consent from all parties listed on the contract, and there cannot be any clauses present that violate the law. If you have any questions about the specific language to include in a contract, it’s always a good idea to consult a qualified real estate attorney.

When Will Assignments Not Be Enforced?

In certain cases, an assignment of contract will not be enforced. Most notably, if the contract violates the law or any local regulations it cannot be enforced. This is why it is always encouraged to understand real estate laws and policy as soon as you enter the industry. Further, working with a qualified attorney when crafting contracts can be beneficial.

It may seem obvious, but assignment contracts will not be enforced if the language is used incorrectly. If the language in a contract contradicts itself, or if the contract is not legally binding it cannot be enforced. Essentially if there is any anti-assignment language, this can void the contract. Finally, if the assignment violates what is included under the contract, for example by devaluing the item, the contract will likely not be enforced.

How To Assign A Real Estate Contract

A wholesaling investment strategy that utilizes assignment contracts has many advantages, one of them being a low barrier-to-entry for investors. However, despite its inherent profitability, there are a lot of investors that underestimate the process. While probably the easiest exit strategy in all of real estate investing, there are a number of steps that must be taken to ensure a timely and profitable contract assignment, not the least of which include:

Find the right property

Acquire a real estate contract template

Submit the contract

Assign the contract

Collect the fee

1. Find The Right Property

You need to prune your leads, whether from newspaper ads, online marketing, or direct mail marketing. Remember, you aren’t just looking for any seller: you need a motivated seller who will sell their property at a price that works with your investing strategy.

The difference between a regular seller and a motivated seller is the latter’s sense of urgency. A motivated seller wants their property sold now. Pick a seller who wants to be rid of their property in the quickest time possible. It could be because they’re moving out of state, or they want to buy another house in a different area ASAP. Or, they don’t want to live in that house anymore for personal reasons. The key is to know their motivation for selling and determine if that intent is enough to sell immediately.

With a better idea of who to buy from, wholesalers will have an easier time exercising one of several marketing strategies:

Direct Mail

Real Estate Meetings

Local Marketing

2. Acquire A Real Estate Contract Template

Real estate assignment contract templates are readily available online. Although it’s tempting to go the DIY route, it’s generally advisable to let a lawyer see it first. This way, you will have the comfort of knowing you are doing it right, and that you have counsel in case of any legal problems along the way.

One of the things proper wholesale real estate contracts add is the phrase “and/or assigns” next to your name. This clause will give you the authority to sell the property or assign the property to another buyer.

You do need to disclose this to the seller and explain the clause if needed. Assure them that they will still get the amount you both agreed upon, but it gives you deal flexibility down the road.

3. Submit The Contract

Depending on your state’s laws, you need to submit your real estate assignment contract to a title company, or a closing attorney, for a title search. These are independent parties that look into the history of a property, seeing that there are no liens attached to the title. They then sign off on the validity of the contract.

4. Assign The Contract

Finding your buyer, similar to finding a seller, requires proper segmentation. When searching for buyers, investors should exercise several avenues, including online marketing, listing websites, or networking groups. In the real estate industry, this process is called building a buyer’s list, and it is a crucial step to finding success in assigning contracts.

Once you have found a buyer (hopefully from your ever-growing buyer’s list), ensure your contract includes language that covers earnest money to be paid upfront. This grants you protection against a possible breach of contract. This also assures you that you will profit, whether the transaction closes or not, as earnest money is non-refundable. How much it is depends on you, as long as it is properly justified.

5. Collect The Fee

Your profit from a deal of this kind comes from both your assignment fee, as well as the difference between the agreed-upon value and how much you sell it to the buyer. If you and the seller decide you will buy the property for $75,000 and sell it for $80,000 to the buyer, you profit $5,000. The deal is closed once the buyer pays the full $80,000.

real estate assignment contract

Assignment of Contract Pros

For many investors, the most attractive benefit of an assignment of contract is the ability to profit without ever purchasing a property. This is often what attracts people to start wholesaling, as it allows many to learn the ropes of real estate with relatively low stakes. An assignment fee can either be determined as a percentage of the purchase price or as a set amount determined by the wholesaler. A standard fee is around $5,000 per contract.

The profit potential is not the only positive associated with an assignment of contract. Investors also benefit from not being added to the title chain, which can greatly reduce the costs and timeline associated with a deal. This benefit can even transfer to the seller and end buyer, as they get to avoid paying a real estate agent fee by opting for an assignment of contract. Compared to a double close (another popular wholesaling strategy), investors can avoid two sets of closing costs. All of these pros can positively impact an investor’s bottom line, making this a highly desirable exit strategy.

Assignment of Contract Cons

Although there are numerous perks to an assignment of contract, there are a few downsides to be aware of before searching for your first wholesale deal. Namely, working with buyers and sellers who may not be familiar with wholesaling can be challenging. Investors need to be prepared to familiarize newcomers with the process and be ready to answer any questions. Occasionally, sellers will purposely not accept an assignment of contract situation. Investors should occasionally expect this, as to not get discouraged.

Another obstacle wholesalers may face when working with an assignment of contract is in cases where the end buyer wants to back out. This can happen if the buyer is not comfortable paying the assignment fee, or if they don’t have owner’s rights until the contract is fully assigned. The best way to protect yourself from situations like this is to form a reliable buyer’s list and be upfront with all of the information. It is always recommended to develop a solid contract as well.

Know that not all properties can be wholesaled, for example HUD houses. In these cases, there are often anti-assigned clauses preventing wholesalers from getting involved. Make sure you know how to identify these properties so you don’t waste your time. Keep in mind that while there are cons to this real estate exit strategy, the right preparation can help investors avoid any big challenges.

Assignment of Contract Template

If you decide to pursue a career wholesaling real estate, then you’ll want the tools that will make your life as easy as possible. The good news is that there are plenty of real estate tools and templates at your disposal so that you don’t have to reinvent the wheel! For instance, here is an assignment of contract template that you can use when you strike your first deal.

As with any part of the real estate investing trade, no single aspect will lead to success. However, understanding how a real estate assignment of contract works is vital for this business. When you comprehend the many layers of how contracts are assigned—and how wholesaling works from beginning to end—you’ll be a more informed, educated, and successful investor.

Click the banner below to take a 90-minute online training class and get started learning how to invest in today’s real estate market!

assigns definition real estate

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assigns definition real estate

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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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 is a legal term whereby an individual, the “assignor,” transfers rights, property, or other benefits to another known as the “ assignee .”   This concept is used in both contract and property law.  The term can refer to either the act of transfer or the rights /property/benefits being transferred.

Contract Law   

Under contract law, assignment of a contract is both: (1) an assignment of rights; and (2) a delegation of duties , in the absence of evidence otherwise.  For example, if A contracts with B to teach B guitar for $50, A can assign this contract to C.  That is, this assignment is both: (1) an assignment of A’s rights under the contract to the $50; and (2) a delegation of A’s duty to teach guitar to C.  In this example, A is both the “assignor” and the “delegee” who d elegates the duties to another (C), C is known as the “ obligor ” who must perform the obligations to the assignee , and B is the “ assignee ” who is owed duties and is liable to the “ obligor ”.

(1) Assignment of Rights/Duties Under Contract Law

There are a few notable rules regarding assignments under contract law.  First, if an individual has not yet secured the contract to perform duties to another, he/she cannot assign his/her future right to an assignee .  That is, if A has not yet contracted with B to teach B guitar, A cannot assign his/her rights to C.  Second, rights cannot be assigned when they materially change the obligor ’s duty and rights.  Third, the obligor can sue the assignee directly if the assignee does not pay him/her.  Following the previous example, this means that C ( obligor ) can sue B ( assignee ) if C teaches guitar to B, but B does not pay C $50 in return.

            (2) Delegation of Duties

If the promised performance requires a rare genius or skill, then the delegee cannot delegate it to the obligor.  It can only be delegated if the promised performance is more commonplace.  Further, an obligee can sue if the assignee does not perform.  However, the delegee is secondarily liable unless there has been an express release of the delegee.  That is, if B does want C to teach guitar but C refuses to, then B can sue C.  If C still refuses to perform, then B can compel A to fulfill the duties under secondary liability.

Lastly, a related concept is novation , which is when a new obligor substitutes and releases an old obligor.  If novation occurs, then the original obligor’s duties are wiped out. However, novation requires an original obligee’s consent .  

Property Law

Under property law, assignment typically arises in landlord-tenant situations.  For example, A might be renting from landlord B but wants to another party (C) to take over the property.   In this scenario, A might be able to choose between assigning and subleasing the property to C.  If assigning , A would be giving C the entire balance of the term, with no reversion to anyone whereas if subleasing , A would be giving C for a limited period of the remaining term.  Significantly, under assignment C would have privity of estate with the landlord while under a sublease, C would not. 

[Last updated in May of 2020 by the Wex Definitions Team ]

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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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What Is an Assignor?

Assignor Explained

assigns definition real estate

Definition and Examples of an Assignor

How does an assignor work, assignor vs. delegator.

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An assignor is a party who transfers rights, property, or benefits to another party called “the assignee.”

An assignor is an original party to a contract who can give the rights, property, or benefits of that contract to another person (the assignee). An assignor can be an individual, group, business, or other entity. Once the assignment of contract is valid, the assignor’s rights to the contract are transferred to the assignee.

Here are a few examples of the role an assignor plays in some common scenarios.

The contract between a consumer with a car lease and a dealership is frequently assigned to a third party. The initial contract is signed between the car buyer and the car dealership when a vehicle is bought or leased. The buyer and the dealership are the two original party members of the contract. The car dealership (the assignor) will sell the loan on the car to a bank (the assignee) in an assignment. The bank now holds the rights to collect money from the car owner in exchange for ownership of the vehicle. The bank notifies the car owner (the “obligor”), and payments are made to the bank instead of the dealership.

In an auto loan scenario, the car dealership is the assignor, the bank is the assignee, and the car owner is the obligor.

Apartment Lease

It’s not uncommon for a tenant to move before the end of their lease. If the original contract allows for an assignment of the lease to another person, tenants can transfer that lease to another person in an assignment. It is more commonly called a lease takeover or lease transfer. Here, the tenant (assignor) transfers the rights of living in the property to the new tenant (assignee). The apartment community is the obligor, the original tenant is the assignor, and the new tenant is the assignee.

Real Estate

It’s also common to see assignments in real estate. One tool real estate investors may use is a real estate assignment contract. This is more commonly known as wholesaling , selling contracts, flipping contracts, or assignment of real estate.

In this type of transaction, a real estate investor finds a property to buy from an owner. They sign a contract for the property at a sales price they both agree to.

The contract language must allow for the contract to be assigned to a third party. If there is no language providing for the assignment of the contract, no assignment can be made.

Next, instead of closing the sale, the real estate investor will find a new buyer for the property at the agreed-upon contract price. What the real estate investor is selling is the right to buy the property from the original owner for the terms agreed on in the contract. In exchange, the real estate investor earns an assignment fee, usually around $5,000.

In this example, the original owner of the property is the obligor, the real estate investor is the assignor, and the end buyer is the assignee.

Generally speaking, all contract rights may be assigned by the assignor. There are a few exceptions, including where:

  • Prohibited by statute
  • The contract bans an assignment of contract
  • Assignment would materially change the risk or alter the duties of the obligor
  • The contract assigned is for personal services

An assignment takes place when the assignor is interested in finding a replacement to fulfill or receive the benefits of the original contract. It may be out of necessity, convenience, generosity, or another reason.

A failed business, for example, may need to find a replacement for the lease agreement on its place of business. Rather than continue to make payments to a landlord, the business (assignor) may be able to find a new tenant (assignee) to take the right of occupying the property in exchange for paying rent to the landlord (obligor). This is only possible if the contract allows for an assignment.

Another reason an assignor may want to transfer rights is for convenience. In a previous example, a car dealership (assignor) sold car loans to a bank (assignee). This frees up the dealership to sell cars instead of service loans. It makes more sense for the bank to service a car loan instead of a dealership doing so.

Each of the parties in the assignment has a role, as shown in the examples given.

The assignor’s role : The assignor is the party that transfers its contractual rights to another party. These contractual rights include both the contractual obligations and the benefits. The assignee steps into the assignor’s role to fulfill the contract with the obligor. The assignor no longer has a role in the contract after the assignment of the contract is complete.

An assignor only acts as an assignor when transferring rights and obligations of a contract to an assignee. In other words, the assignor would continue in its role as promisee (as opposed to assignor) if no assignment was made.

The assignee’s role : The assignee is the party that accepts the contractual rights from the assignor. The assignee can be an individual, group, business, or other entity. The assignee is not an original party to the contract, but steps in to fill the role specified in the contract by the assignor.

Once a valid assignment of rights has been made, the assignee should notify the obligor of the assignment. The assignor no longer has any role in the contract.

The obligor’s role : The obligor is the original party member with a contract with the assignor. When the contract is assigned from the assignor to the assignee, the obligor now owes the benefit (like rent or car payment) to the assignee.

An assignor is similar to a delegator. A delegator frees themselves of the responsibilities of the assignment by delegating them to a third party. However, unlike an assignor, a delegator is not completely free of the obligations (or benefits). If the delegatee fails to perform the duties of the assignment, the delegator is still responsible to perform the duties of the original contract.

Key Takeaways

  • An assignor is the person transferring rights and obligations to an assignee.
  • Assignors relinquish their rights and obligations to an assignee.
  • The original contract must allow for assignments in order for an assignor to transfer rights to an assignee.
  • Alternatively, contracts may be delegated instead of assigned.

Consumer Financial Protection Bureau. " What Is an Assignee of an Auto Loan? " Accessed Sept. 7, 2021.

Texas Land Title Institute. " Insuring Investor Transactions in Texas ." Page 24. Accessed Sept. 7, 2021.

Sam Houston State University. " 3rd Party Rights 4322-4324 ." Accessed Sept. 7, 2021.

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  • Government & Policy

Assignee: What it is, How it Works, Types

assigns definition real estate

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

assigns definition real estate

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

assigns definition real estate

What Is an Assignee?

An assignee is a person, company, or entity who receives the transfer of property, title, or rights from another according to the terms of a contract. The assignee receives the transfer from the assignor. For example, an assignee may receive the title to a piece of real estate from an assignor.

Key Takeaways

  • An assignee is a person, company, or entity who receives the transfer of property, title, or rights from a contract.
  • The assignee receives the transfer from the assignor.
  • An assignee may be the recipient of an assignment, a liability, or appointed to act in the stead of another person or entity.
  • The assignee typically will hold the rights of power of attorney only for a specified time or for particular circumstances.
  • Once the time has expired or the circumstances have been resolved, the assignee would automatically relinquish those rights.
  • Not all assignment contracts are required to be made in writing, but they often are.

How an Assignee Works

An assignee may be the recipient of an assignment, a liability, or appointed to act in the stead of another person or entity. For example, an executor of an estate may be appointed through a will left by a decedent.

Types of Assignees

Assignee in real estate.

An assignee is the recipient of a title when a deed is signed to confer ownership of property in a transaction. A tenant might choose to transfer their property rights to an assignee who would assume duties for paying rent and tending to the property. There may be limits to the rights and liabilities that are granted to an assignee based on the nature of the transfer or assignment of rights.

For example, an assignee might take on the property rights from a tenant who vacated a rental property, but the tenant may still be liable if the assignee does not make rent payments on time. An assignee who takes title and ownership of real estate might not have certain rights to use the property any way they wish. There may be rights of ingress and egress that must be negotiated with adjacent property owners who hold surrounding land parcels. The assignee could receive certain rights that run with the land when they are granted the title.

Assignment by Power of Attorney

Power of attorney may be assigned to a person to tend to certain affairs for a person while they are out of the country or not capable of taking action for themselves. The assignment of power of attorney can grant broad rights or be limited in scope by the terms set by the assignor. The rights could be for the specific handling of a contract or business deal that the assignor cannot be present for.

The assignee typically will hold the rights of power of attorney only for a specified time or particular circumstances. Once the time has expired or the circumstances have been resolved, the assignee would automatically relinquish those rights. It is possible that the terms of power of attorney might allow an assignee to act in their self-interest rather than for the interests of the assignor.

Assignee in an Insurance Policy

In the context of a life insurance policy, interest in a policy can be transferred from the policyholder to a lender or relative by assignment of the policy. In this case, the policyholder is the assignor and the person in whose favor the policy has been assigned is called the assignee.

Assignee in a Contract

When one party to a contract—the assignor—hands off the contract's obligations and benefits to a different party—the assignee—this is known as an assignment of contract. In this situation, the assignee assumes all the rights and responsibilities of the contract from the assignor. All, or a portion, of a letter of credit can be assigned to a third party to pay vendors and suppliers.

Assignee in a Loan

An assignee is a person or a company that buys your loan. For example, an auto dealer that extends credit to individuals may sell their loans to a bank. In this case, the bank is the assignee and the auto dealer is the assignor. If your loan has been sold, you owe money to whoever owns your loan. In the event that responsible parties fail to meet their loan obligations, the assignee has a lien on the vehicle and can repossess it.

Not all assignment contracts are required to be made in writing, but they often are. Assignment contracts may also need to be notarized and witnessed in order to be valid. The assignment of property and collateral for loans must be in writing. Note that not all rights, contracts, or other property are assignable; many contracts, particularly real estate leases and personal service agreements, explicitly prohibit assignment. 

assigns definition real estate

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Matthew Srnka's profile image

  • from Appleton, Wisconsin
  • Member since Jan 29, 2016
  • Appleton, WI

Using "And / or Assigns" vs. just "or assigns"

I'm located in Appleton, WI, which for those unfamiliar with Wisconsin is in the Fox Cities, about 30 minutes south of Green Bay, WI.

I am looking for clarity on several things, for I've been wanting to get my ducks in a row before taking any risks wholesaling in Wisconsin (if you're interested where - mostly in the Fox Cities to start). I'm mainly interested in selling to fix & flippers, but I'm also learning how to run numbers for the cash flow / long term real estate investor.

First, the difference between using "and/or assigns" vs "or assigns" in the offer to purchase. What are the technical reasons for using one or the other? When should either be used, and why?

Second, using an option to purchase in a wholesale deal. Why not just get an offer to purchase notarized instead? Plus, can options be assignable?

Third, does anyone ever have a title company open what's known as a "Hold Open Title" instead of actually going through a double close to avoid showing up on title (and avoid paying capital gains tax) and then also only paying one set of escrow fees?

Fourth, if we are assigning an offer to an end buyer, should a wholesaler be using a second offer to purchase, but signed by the buyer? I'm hung up on using an assignability contract, because as far as I'm aware, there isn't one used by real estate agents in Wisconsin. 

Fifth, how do we get paid out at the title company? How do we show up? Using a single escrow, does the title company make the two contracts (two offers, or an offer and assignability contract) into one contract, and then do we show up as a loan being paid off on the seller's side of the HUD ?

I just want to know what I should expect to happen, and what should happen.

Please help. Thanks!

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What is the Difference Between Nominee and Assignee?

by Mark Stiles | Nov 25, 2019 | For The Real Estate Investor , For The Real Estate Professional , For The Seller | 0 comments

A question came up during our Real Estate class asking, “What is the difference between a nominee and an assignee?” A buyer usually has the right to nominate a nominee to purchase the property. This has no impact on the seller. Common nominees include estate planning revocable trusts, real estate investment trusts, LLCs or corporations. A nominee is ordinarily a related entity to the buyer named in the purchase and sale agreement.

An assignment occurs when the buyer assigns their interest in the purchase and sale agreement to someone else. An assignee is an entirely different person or entity. As a seller, with an assignee, be aware that it may be someone else at the closing. What does that mean? The assignee will “step into the shoes” of the buyer, attend the closing and be bound by the terms of the purchase and sale agreement. The purchase and sale agreement may not permit an assignment without permission of the seller.

Using a nominee can be helpful with estate planning. Buyers who may want to name a nominee should include “or my nominee.” Without this language, a buyer may be forced (depending on the circumstance) to close in your name.

If you have any questions about selling your home or buying a home, contact Stiles Law by calling (781) 319-1900.

Copyright © 2019 Stiles Law, All rights reserved. Stiles Law is a Massachusetts licensed law firm and all content is based on Massachusetts law. The information presented above is meant to be used for general informational purposes and it should not be construed as legal advice or legal opinion on any specific facts.

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Legal question in real estate law in florida, definition of and/or assigns when the following phrase is used in a contract, what does ''and/or assigns'' mean is it a ''catch all phrase'' to include anyone they did not list the phrase may also contain the words company, director, employee, agent, etc., but the sentence always ends with ''and/or assigns.'' ----- ''this agreement and the covenants hereof shall bind and inure to the benefit of parties hereto, and their respective successors, heirs, executors, administrators, personal representatives, legatees and/or assigns.'' thanks for clearing this up for me., 2 answers from attorneys.

assigns definition real estate

Re: Definition of and/or assigns

Assigns and assignees are the same. An assignee receives what his assignor transfers to him. There will usually be a written document which spells out the assignment. The assignment creates legal responsibilities on both parties.

assigns definition real estate

The phrase refers to any person or entity that may step into the shoes of the grantor/assignor which is typically the original party to the agreement. The assignee steps into the shoes of the assignor through an "assignment" which is generally a written document that set forth exactly what is being assigned from the assignor to the assignee and the legal responsibilities created by such assignment.

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Individuals to whom property is, will, or may be transferred by conveyance, will , Descent and Distribution , or statute; assignees.

The term assigns is often found in deeds; for example, "heirs, administrators, and assigns to denote the assignable nature of the interest or right created."

ASSIGNS, contracts. Those to whom rights have been transmitted by particular title, such as sale, gift, legacy, transfer, or cession. Vide Ham. Paities, 230; Lofft. 316. These words, and also the word forever, are commonly added to the word heirs in deeds conveying a fee simple, heirs and assigns forever "but they are in such cases inoperative. 2 Barton's Elem. Convey. 7, (n.) But see Fleta, lib. 3, cap. 14, Sec. 6. The use of naming them, is explained in Spencer's Case, 5 Rep. 16; and Ham. Parties, 128. The word heirs, however, does not include or imply assigns. 1 Anderson's Rep. 299.

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  • Association of Chief Police Officers in Scotland
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  • Assignment Selection Data/Date
  • Assignment Selection Date
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  • Assignment statement
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  • Assignment/Correspondence Tracking System
  • assignments
  • Assignments of Lease
  • Assignments of Letter of Credit
  • Assignments of Life Policies
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Four Seasons near the Kremlin 742

128 sqm apartment near the Kremlin with a view of Theatre Square

  • 3 Bathrooms
  • Contact for price

Apartment 530 Knightsbridge Private Park

Apartment 76 sqm on the 34th floor in NEVA TOWER

Penthouse 284 Zvenigorodskoe highway 11

Penthouse 284 sqm on Zvenigorodskoe highway

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Apartment 66 sqm on Leningradsky prospect 36s36

2-room apartment 66 sqm on the 11th floor

assigns definition real estate

3-room apartment 72 sqm in the elite Filevsky district

Apartment 880 in the Headliner residential complex on the 8th floor

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Apartment 68 sqm in a building near the metro station Dynamo

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3-room apartment 105 sqm near VDNKh metro station

Novodmitrovskaya street 2k5

Penthouse 140 sqm on the 46th floor

  • $4,700/one square meter

Residential complex Sky Garden in Moscow

New residential complex Sky Garden in Moscow

  • $15,000/one square meter

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New residential skyscraper Capital Tower in Moscow City for investors

Apartment on Nikolskaya street 10/2s2B

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Apartment overlooking the Kremlin and Red Square

Apartment 207 sqm in the residential complex Triumph Palace

Apartment on the 35th floor in the Triumph Palace

Apartment 177 sqm at Leningradsky prospect 36c31

3-room apartment 177 sqm in Hyatt Regency

Apartment on the 6th floor on Bolshaya Sadovaya street 5k1

3-room apartment 123 sqm in Tverskoy district

Apartment in Filevsky district on Beregovoy proezd 5k1

Cheap apartment 42 sqm on the 28th floor

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3-room apartment in the residential complex City Park on Mantulinskaya street 9k1

3-room apartment in City Park residential complex

Apartment 101 sqm in the Mercury Tower Moscow City

Apartment in the Mercury Tower / on the 43rd floor

Looking for apartments for buying in russia.

Choosing the neighborhood of your future residence is a task to be treated with diligence. Poor transport accessibility, a lacking infrastructure and unsatisfactory ecological parameters may noticeably dampen the joy a new property owner is sure to feel from their purchase. To help you avoid such a scenario, we have put together a short overview of the areas in Moscow where you may be considering the purchase of a home , complete with the pros and cons of each of the different locations:

Arbat District – the cultural and business center of Moscow. One of the most prestigious locations in the capital. It boasts a very good infrastructure and high transport accessibility. Unsurprisingly, the property costs here are the highest in Moscow. Despite its small size, the district contains around 10% of all of the capital’s new elite residential buildings, and apartments for sale make up 96% of the properties on the market in this neighborhood. The price of a square meter (3.28 sqft) for an apartment in a new building with penthouses is, on average, 12 000 USD, while the cost of the same in an old building is 9 000 USD. One can even find luxury condos with open terraces for sale in the area.

Kuntsevo District – a beautiful locality surrounded by vast areas of woodland and river beaches on the banks of Moskva River. A strong point of this neighborhood is its good environmental conditions. Brand new and modern residential compounds have been erected here. One square meter (3.28 sqft) of an apartment in a new housing complex in Kuntsevo District currently costs 3 000 USD.

Cozy russian apartment for sale in Moscow

Yakimanka District – one of the most interesting and prestigious areas of Moscow by popular opinion. It is packed full of well-known historic monuments, museums and large parks. The Yakimanka District changed drastically during the Soviet era: most of the centuries-old low-rise houses and mansions were completely demolished or restructured. By the beginning of the 1990’s, new residential and public complexes had already taken their place. Today, one can find condos for sale in Yakimanka’s new residential complexes for the average price of 11 000 USD per square meter (3.28 sqft). The price of a square meter in a Soviet era panel building is 4 000 USD.

Here in Russia’s capital we have our own skyscrapers – grouped together in the compound famously dubbed Moscow-City (the Moscow International Business Center). Many large corporations have their headquarters here. For 1 million US dollars you can purchase a 3-room apartment with a floor area of 607 sqft (185 m²) in one of the towers. This particular listing is located on the 25 th floor.

Where Can I Find Cheap Flats?

If you happen to be a student or if your budget is capped at 300 000 USD and you are looking for cheap condos for sale in Moscow, then the Mitino, Nekrasovka, Cheryomushki, Butovo and Novogireyevo Districts will best suit your needs. These neighborhoods each contain a great number of residential complexes inhabited by Moscow’s middle class. They also have everything one might need for a comfortable life: many schools, kindergartens, big supermarkets, public pools, hospitals, etc. One of Moscow’s Metro stations is also usually just a short walk away. The minimum price of a furnished studio flat in a location within the Moscow Ring Road (a.k.a. MKAD) is currently 100 000 USD.

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Business Insider

Commercial real estate is in big trouble — and the problems may have major financial fallout

  • Problems for the US commercial real estate sector seem to be getting worse — and spreading.
  • Steeper interest payments, tighter bank lending, and declining asset values have slammed the sector.
  • Some bold buyers plan to capitalize on the chaos by scooping up bargains.

The tremors rattling US commercial real estate are spreading to other countries and sectors, and threaten to escalate into a financial earthquake as refinancing deadlines loom.

Some investors aren't worried about falling through the cracks, though. They think the climate of fear and confusion is serving up prime properties at bargain prices.

What's going on?

There are growing signs that commercial real estate is in serious trouble.

Barry Sternlicht, a billionaire real estate investor and Starwood Capital's CEO , recently predicted $1 trillion of losses on office properties alone.

More than $900 billion, or 20%-plus of the total debt owed on US commercial and multi-family real estate, will mature this year, Bloomberg reported this week. Borrowers may have no choice but to refinance at much higher interest rates, or sell their properties at a big discount.

Property jitters are being felt in Europe too. The value of bonds for Germany's Pfandbriefbank tumbled this month as investors fretted about its exposure to the embattled industry.

Moreover, the European Central Bank has threatened to impose steeper capital requirements on lenders unless they take commercial real estate risks seriously, sources told Bloomberg .

At the same time, some Chinese investors are rushing to sell foreign real estate at discounts of 45% or more, in an effort to free up cash as they weather a worsening property crisis at home.

Prospective losses, refinancing woes, international contagion, and panic selling combine to create a bleak outlook for the commercial property sector.

Why's everyone so worried?

Fears were reignited this month after New York Community Bancorp abruptly cut its dividend, set aside some $500 million to cover bad debts, and revealed a surprise quarterly loss that it blamed on just two troubled loans.

Investors promptly sent NYCB stock down 60% in five days, and it's still trading at two-decade lows. The lender's scramble to clean up its finances triggered bad memories of last spring's regional-banking fiasco that saw Silicon Valley Bank and two other lenders hit by tidal waves of deposit withdrawals, then seized by the federal government before they collapsed entirely.

The catalyst for both the banking and commercial real estate drama is deceptively dry: rising interest rates.

But the simple act of making borrowing more expensive can discourage spending, hiring, and investing; drag down the prices of risky assets like stocks by boosting yields from bonds and savings accounts; turn the screw on debt-reliant industries; and slow the economy into recession .

In response to surging inflation, the Federal Reserve hiked its benchmark interest rate from virtually zero in early 2022 to more than 5% by the following summer. It hasn't lowered it since, and other countries' central banks have followed its lead.

The combination of higher borrowing costs and the shift to remote working has sapped demand for offices and other commercial property, driving down asset values.

Some regional lenders such as Silicon Valley Bank weren't sufficiently hedged against rate hikes last year, and saw their portfolios of bonds and mortgages slump in value as a result.

Stung by those paper losses, fearful of a surge in late payments and loan defaults, and wary of further bank runs, lenders have pulled back from lending for commercial property.

The upshot is the sector not only much higher interest payments on its massive debts, but also a credit crunch and declining asset values. Small businesses are also feeling the squeeze from steeper borrowing costs and stricter lending standards.

On the bright side, inflation has dropped from a 40-year high of 9.1% in the summer of 2022 to below 4% in recent months, leading the Fed to pencil in a number of rate cuts this year.

But many property loans are falling due in the next year or two, raising the question of whether rates will come down fast enough to prevent a disaster.

Indeed, some $2.2 trillion in commercial mortgages are set to mature by the end of 2027, data firm Trepp estimates.

"At some point, that avalanche is going to hit," the firm's chief product officer told The Wall Street Journal.

Wait, some buyers are wading into this market?

Yes they are. Warren Buffett famously preaches "be greedy when others are fearful" — and some brave souls are taking that advice to heart.

Ian Jacobs, a former assistant to the Berkshire Hathaway CEO, plans to buy 3 million square feet of office space in San Francisco and pay about 70% below building costs, The Journal reported this week.

He's already lined up $750 million from investors, despite warning them it could take a decade for prices to bounce back, the report said.

Jacobs is a member of the Reichmann family, meaning bargain hunting is pretty much a family business. His relatives built a real estate empire by scooping up cheap properties in New York City when it nearly went bankrupt in the 1970s.

Other examples include Ares Management and RXR, two investment firms that are purchasing interests in 3 million square feet of office space, sources told The Journal.

In December the Aon Center in downtown Los Angeles sold for about $148 million — considerably less than the $268 million it fetched in 2014, Bloomberg reported .

Moreover, "Undercover Billionaire" star and real estate tycoon Grant Cardone has hailed the ongoing correction as a rare chance for everyday people to buy "trophy real estate" from institutional owners.

Of course, commercial property players have a vested interest in trumpeting the industry's troubles as a buying opportunity, given that could revive investor interest and reverse the plunge in their property values.

Yet it's likely that some high-quality assets will be caught up in the selloff. Those who buy them when fear is spreading far and wide and indebted developers are in a race against time will ultimately be rewarded for their courage.

Commercial real estate is in big trouble — and the problems may have major financial fallout

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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

    An assignment of contract involves transferring a real estate contract from an original party (also known as the real estate wholesaler or assignor) to a new party (also known as the assignee). It is also referred to as an "Assignment of Real Estate Purchase and Sale" agreement.

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

    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. FREE Making Money with Real Estate Investing Course

  5. What Is an Assignment in Real Estate?

    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. What Does it Mean to Assign a Contract in Real Estate?

  6. assign

    Assign is the act of transferring rights, property, or other benefits to another party (the assignee) from the party who holds such benefits under contract (the assignor). This concept is used in both contract and property law . Contract Law

  7. PDF Successors and assigns:Does it mean what it says?

    Shepherd. Real Property Article of the Annotated Code of Maryland ("RP Article"), that received no attention by Maryland appel-late courts in two recent cases where it could have played a decisive role. This situ-ation has left Maryland real property prac-titioners at a loss to understand how best to draft real estate documents in light of ...

  8. assignment

    assignment. Assignment is a legal term whereby an individual, the "assignor," transfers rights, property, or other benefits to another known as the " assignee .". This concept is used in both contract and property law. The term can refer to either the act of transfer or the rights /property/benefits being transferred.

  9. Assignment Clause

    Overview 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.

  10. What Is an Assignor?

    An assignor is an original party to a contract who can give the rights, property, or benefits of that contract to another person (the assignee). An assignor can be an individual, group, business, or other entity. Once the assignment of contract is valid, the assignor's rights to the contract are transferred to the assignee.

  11. Assignee: What it is, How it Works, Types

    Assignee: A person, company or entity who receives the transfer of property, title or rights from a contract. The assignee receives the transfer from the assignor. For example, an assignee may ...

  12. Definition Of Assign In Real Estate

    Broadly speaking, a commission is a remuneration a person receives after acting on someone else's behalf.In the real estate world, you'll usually hear the term "sales ... Rural Property When we think of rural property or rural real estate, most of us think of farms, properties with large areas designated to agricultural land.

  13. Using "And / or Assigns" vs. just "or assigns"

    First, the difference between using "and/or assigns" vs "or assigns" in the offer to purchase. What are the technical reasons for using one or the other? When should either be used, and why? Second, using an option to purchase in a wholesale deal. Why not just get an offer to purchase notarized instead?

  14. What is the Difference Between Nominee and Assignee?

    Common nominees include estate planning revocable trusts, real estate investment trusts, LLCs or corporations. A nominee is ordinarily a related entity to the buyer named in the purchase and sale agreement. An assignment occurs when the buyer assigns their interest in the purchase and sale agreement to someone else. An assignee is an entirely ...

  15. 136 Real Estate Terms and Definitions You Need to Know

    A purchase agreement outlines the terms and conditions of a sales contract. It affirms the buyer's intent to purchase the property and the seller's intent to convey it to the buyer. It also outlines the general agreed-upon terms, such as the purchase price, contingencies, closing date, and earnest money details.

  16. Definition of and/or assigns

    Definition of and/or assigns When the following phrase is used in a contract, what does ''and/or assigns'' mean? Is it a ''catch all phrase'' to include anyone they did not list? The phrase may also contain the words company, director, employee, agent, etc., but the sentence always ends with ''and/or assigns.'' -----

  17. Deed included "heirs, successors, and assigns" of the grantee. What

    The deed included the LLC's "heirs, successors, and assigns forever" as grantee along with the LLC itself. What is the legal effect of the "heirs, successors, and assigns" language? This looks like a boilerplate deed, so I think this language must have evolved to address from some real world contingency. Asked in Coral Springs, FL | Feb 22 ...

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    Definition of "Heirs and assigns" Written by LaRenda Mosley CENTRY 21 Realty Partners Language commonly used in a fee simple title conveyance. The significance is whether the title is clear and can be passed on to the purchaser's estate including all heirs and those who may have any interest in the estate, the assigns. Have a question or comment?

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    1 room apartment. Moscow, Russia. 1. 1. 30 m². 5/13. Studio apartment for sale, with an area of 30.4 square meters on the 5th floor of a business…. €94,040. Leave a request.

  21. Assigns legal definition of Assigns

    TheFreeDictionary Assigns Also found in: Dictionary, Thesaurus, Financial, Idioms, Encyclopedia. Related to Assigns: assignor Assigns Individuals to whom property is, will, or may be transferred by conveyance, will, Descent and Distribution, or statute; assignees.

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