Posted by Stacy (AZ) on March 14, 2000 at 24:00:34:
Help me to understand. You say if the buyer is offered a better deal, he could go for it, even though it’s unethical. Then you said the assignment contract is between you and the assignee. But, the buyer IS the assignee, and before he signs the assignment agreement, he will read the sales contract and know what the original purchase price is anyway. No one is going to agree to have a contract assigned to them without knowing what they are agreeing to. Some time before closing, the buyer is going to have to know what’s in the contract, including the original price. Are you suggesting a way around letting him know the your sales price when doing an assignment?
Or is it the realtor you are concerned with? A realtor would risk his license to get his buyer a lesser selling price and himself a smaller commission?
Maybe I’m not reading your post correctly. How were you burned by realtors in the past?
I am dealing with a buyer who would like to purchase a home I have under contract. I have the home under contract for 30,500 and would like to sell the house for $42,000. The house is in good condition with just cosmetic work need which both floors will rent for $500-$550 a month in average neighborhood with tenants paying own heat.
My issue is that I have spoken with my buyers broker who ask me how much do I have the house under contract for and I told him I rather not disclose that information to him because I don’t see what my sellers contract has to do with my buyers contract, especially if I want to assign the contract to my buyer. But anyway I did speak with my buyer this morning and he state that the broker would like to know if I can do a separate contract for the assignment and get my money at closing. Mind you, I had already spoken with both buyer and broker regarding my plans of assigning the contract. I stated to my buyer that I, as stated before, am willing to do an assignment due to the banks concern of the title and that I do have my own assignment contract that I will be submitting for the deal. I would like to know if I am handling this correctly and since I will not be at the closing, how do I know that I am going to get my money. Yes I am using a lawyer who is familiar with investment property deals.
Posted by Stacy (AZ) on March 13, 2000 at 12:27:41:
Yes, you can use an assignment contract, and get your money at closing. If you are not present at the closing, the money will either be sent to you, or held for you to pick it up. Your option. How do you know you will get your money? You have to believe the closing attorney or agent won’t commit fraud. Keep copies of everything.
By the way, I think it’s OK to let the buyer know how much your contracted buy-price is when you are assigning the contract. He’ll find-out anyway.
Glad to see this is moving forward for you. This is a tremendous payday for a first deal! Good going!
Im not sure I would tell the realtor the price, the only done deal is the day of closing,if the buyers are offered a better deal although unethicial, its been done. and the assignment contract is between you and the assignee,to be submitted to closing company for title work,the only concern of the realtor is the purchase contract, I’d request to be present with realtor when she presents the contract and have the buyers sign the assignment contract, and submit to closing myself, the profit is irrelavent to the realtor. I’ve had realtors burn me before like this, unless this one is very trustworthy, I’d be causious.