Posted by JoeB(Atlanta) on February 21, 2000 at 16:04:23:
Hi Shenesa, congrats on your potential flip! Here are some answers.
“What are the steps that I need to take to assign the property?” You would fill out an Assignment of Contract (check www.legalwiz.com for Bronchick’s sample) between you and your investor–this assigns the contract you signed with the homeowner and ALL its terms/conditions to your investor.
“Do I need to let my seller know that I am assigning the contract?” You don’t have to if it’s a cash contract, but if it’s anything else (seller financing, subject-to, etc.) I explain to my seller that we’re not able to complete the transaction but have another investor that can and here are his/her credentials…
“Would I use the same contract that my seller and I signed and have the investor(assignee) sign his name on the contract and fax it to my lawyer?” No, see first answer above.
“Would I receive my assignment money at the signing of the assignment?” Some wholesalers try to collect their fee at the signing. I don’t feel that’s fair, since property hasn’t yet changed hands at the closing table. I collect earnest money from my investor (and credit him/her for the earnest money I gave to the seller in the underlying contract, since he’s ‘inheriting’ this earnest money). I collect remainder of fee at the closing.
Hope this helps,