Re: Assigning a Contract? - Posted by LeonNC
Posted by LeonNC on December 27, 2000 at 24:33:57:
Well, the way it works for me is this. You find a great deal on a property. You and the seller sign a purchase agreement. Your agreement with the seller must give you the right to assign the contract.
You then locate someone who would like to be in your position under your agreement with the seller. For a fee you can sell your contract or “assign” the agreement to this person. I like to get the sellers approval and a release of liablity.
You tell the seller you would like to assign the contract to a friend of yours or a partner who also buys houses. The seller agrees and signs the agreement and release. You then take the assignment agreement to your buyer who after doing his due diligence agrees to purchase the contract. He/She signs the assignment agreement. He cuts you a check, you give him the purchase agreement and a copy of the assignment agreement.
There’s not a whole lot more to it. You’ll want to check the title when you get it under contract. And you want to make sure you charge your buyer enough to cover your profit plus any earnest money you gave the seller.