Posted by Stacy (AZ) on January 16, 1999 at 22:37:43:
Jim, I agree with you. Until I researched it myself, I didn’t realize how open a flipper leaves themselves without the proper protection. I’ve been lucky so far. I’m glad I found out before I got an invitation to see Judge Judy.
Stacy
Assignment Form - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 15, 1999 at 20:13:05:
I’ve probably sent out 150 of these Asssignment Forms individually - I think it’s about time to post it where any one that’s interested can have a copy.
I know it’s acceptable in Dallas - but you should probably have your title company or attorney take a look at it to see if any modifications are needed for your neck of the woods.
The deal is, you can have a copy if you will USE it to do some flips! Good Luck…Jackie
Assignment of Contract of Sale
In consideration of the sum of $, and other good and
valuable consideration, and the mutual benefits to be derived by all parties to this assignment, the undersigned,________ does hereby assign unto _____________________________________, all rights, interest, suites, claims and titles in and to a contract of sale dated _________, by and between __________________ as purchaser, and ___________________, as seller, concerning such property known as ______________________________________ and further known as Lot _____, Block _____, ___________________________addition to the city of _________________, ___________________County, Texas. This assignment does not transfer any earnest monies the assignor may have on deposit.
Executed this _________day of __________1999.
(assignor)
This assignment of contract of sale accepted this ____day of ________.
(assignee)
(phone)
(address)
A Voice from the School of Hard Knocks… - Posted by JPiper
Posted by JPiper on January 15, 1999 at 21:41:48:
Just thought I would inject a cautionary note.
This assignment form is a ?bare-bones? assignment. It does effectively assign a contract?.probably not just in Texas but anywhere in the U.S.
What bothers me about this assignment form is that it contains no protective language for the Assignor?.language that I would absolutely insist upon in my own assignment agreement. Part of this business is making sure you are protected by your contracts. This agreement does not do that.
I would suggest looking at Bronchick?s course called ?How To Be Your Own Real Estate Lawyer?. This course contains many fine forms designed by Bill who is an expert real estate attorney and investor. One of these forms is an assignment form, which does contain protective language. Cost of this course is dirt cheap compared to the cost of hiring an attorney to produce these forms for you. And certainly, the cost is nominal compared to the cost of losing a lawsuit.
I?m sure you?re all aware of the term ?penny-wise and pound foolish.? Spending a little money in this business to have the right documents is prudent.
Anyway, I?d like to compliment Jackie for all the fine advice and knowledge she has given so freely on the NG?especially concerning assignment. We?re all very fortunate to have Jackie as a contributor.
JPiper
Hey Jackie When is your Article going up? - Posted by Meg
Posted by Meg on January 15, 1999 at 20:50:33:
We’re Patiently waiting.
Re: Assignment Form - Posted by johnman
Posted by johnman on January 15, 1999 at 20:48:14:
Jackie,
Good idea! Ever since you’ve sent me the forms I have been consistently sending the forms out too!
Thanks for the forms. You are very kind.
Johnman
Re: A Voice from the School of Hard Knocks… - Posted by Jackie in Dallas
Posted by Jackie in Dallas on January 16, 1999 at 10:37:29:
Jim,
The protectionary clauses are in my purchase contract - ie. assigning all rights …release of liability, etc. so it’s something the seller acknowledges and agrees to as well as the buyer.
Thanks for the great advice - I know Bill Bronchick’s materials are first class and it’s very important to have all your legal documents working in conjunction with each other.
At the same time - many people just don’t have $200 for this course and $200 for that course plus another $200 for a contract and assignment form.
For some of the people I’ve talked to the only thing holding them back from getting out there and doing a deal so they’ll have enough money to buy the courses is having a simple contract (with protection clauses)and a way to assign it.
If you wait until you buy all the courses, get your corporations formed, order the business cards, run the ads, have the signs made, set up your bookeeping system, etc, etc - you may NEVER get started.
Some of these things need to be done - but they can be done gradually as the money comes in.
Re: A Voice from the School of Hard Knocks… - Posted by J.P. Vaughan
Posted by J.P. Vaughan on January 15, 1999 at 23:13:36:
The new name for “How to be Your Own Real Estate Lawyer”
is now "Nut & Bolts of Creative Real Estate Transactions.
JP
Re: A Voice from the School of Hard Knocks… - Posted by JPiper
Posted by JPiper on January 16, 1999 at 12:17:43:
Jackie:
Evidently you misunderstood my post.
The assignment agreement is an agreement between the assignor and the assignee. This agreement has nothing to do with the original seller.
I understand that your purchase contract contains protective/release language. What your purchase contract does NOT contain is language indemnifying and holding you (the Assignor) harmless, signed and agreed to by the Assignee. As you know, it would be impossible for the Assignee to indemnify or hold you harmless via the purchase contract since the Assignee does not sign it. That?s the whole point, and why your assignment agreement should contain such language, in my opinion. Anyone not understanding the purpose of this indemnification and hold harmless language in an assignment agreement should contact their attorney.
As to the concept that the newbies here don?t have the money to buy suitable contracts I have a somewhat different theory. My theory is that if you don?t have a couple of hundred dollars to get some basic tools of the trade its too early for you to be in this business. Maybe a part time job to save a little money would be better. It?s kind of like a newbie carpenter wanting a job but doesn?t own a hammer, with the idea that he?ll get a hammer with his first paycheck. If you?re saying that this assignment agreement may not be the best, but that when the newbie has a little more money he can get something better, I would at least point out the deficiencies of the agreement so that the newbie can correct the deficiencies if they choose to, or in the alternative, at least know the possible consequences should they not correct the deficencies. I would say that the person most in need of an assignment agreement WITH hold harmless language and release language is the newbie.
Here?s my personal guarantee to anyone reading this post. When lawsuits come down, and everyone is now sitting in the conference room at that prestigious law firm of Dewey, Cheatum, and Howe, they aren?t going to ask whether you?re a newbie, or whether you had enough money to get a lawyer or buy an effective contract. All they are going to do is look at your paperwork. That?s it. How do I know?? I?ve been there. If I seem a little conservative or overly cautious, there?s a reason. Read the title of this post.
Back in the old days I used to assign contracts, notes etc by simply signing them on the back. We didn?t use separate agreements in those days. That works too, although I would not dream of using that technique today. But one thing we ALWAYS included with our handwriting on the back was the words ?WITHOUT RECOURSE?. If nothing else I would add these to your assignment agreement.
One additional comment. An attorney can write up an assignment form for under $100. I just think that in the end it is cheaper to get Bronchick?s course. Then you don?t just get the assignment form?.you get many, many forms. You?re in business.
Just my opinion.
JPiper