Assignment Contract

I am looking for a contract that I use to assign purchase rights to a different buyer. I am in Chicago and I flip property through my LLc. I am looking for a contract that I can use once I get a property under a contract, I can then assign the purchase rights to a third party.

Assignments

I’m a retired RE investor in the NYC area, and this is the local custom.

Local attorneys use a standard P&S contract with their own addendums. The standard contract says nothing about assignments, and as such, is assignable by default. But standard addendums most attorneys devise contains a clause that says “This contact is not assignable”. Usually is the first item in the addendum.

So what they do is if the seller is OK with a flip, they simply modify the addendum to say “This contract is assignable”, or “This contract is assignable once”, or however many number of times you and the seller agreed to.

Then, when you find a buyer, another P&S contract is prepared, you the flipper is identified as the seller, with “… as Contract Vendor” added after the name. The buyer under the flip is referred to in this second contract as the “Contract Vendee”

Around here, it’s useful for you to engage an attorney in the matter, preferably the same guy that represents the seller if he has one. Realtors normally check the public records and go crazy if you’re the flipper and asks “who are you?, the records show so and so as the owner”. They think you’re pulling a scam.

So if you use an attorney, your buyers can be assured you’re on the up and up. Pay the attorney something to review the contract and answer questions for you for a few bucks.

Make sure your assignment contract has really good “as is” disclaimers and disclosures. I have represented two investors in the last 6 months who were sued by the assignee for problems they didn’t know about.

When in doubt, disclose, and of course, a hold-harmless clause is key.

My assignment form is 2-3 pages.