Assignment of Contract or Commission? - Posted by Amckin1

Posted by Pro on October 24, 2003 at 13:56:59:

As long as you put it under contract yourself, using your name as buyer, and then assign the contract to a buyer, you are in the clear. It isn’t commission, it’s an assignment fee.

This is a little gray; finding the buyer first before getting it under contract, but who is going to complain to the authorities?

Assignment of Contract or Commission? - Posted by Amckin1

Posted by Amckin1 on October 24, 2003 at 13:21:53:

I need some help figuring out the legallity of this transaction.

I was contacted by a motivated couple who is ready to move NOW. Because the deal is not worth the risk for reward (to skinny to L/0 or carry back financing), I was wondering…

Is it legal for an investor to find buyers for a property, put the property under contract and then sell that contract to the owners/sellers (not another investor)?

Is this considered commission if you sell to the sellers?

I’m not a liscensed real estate agent.

Any feedback would help me out …

Thanks,
Andrew

Re: Assignment of Contract or Commission? - Posted by David G.

Posted by David G. on October 24, 2003 at 15:20:05:

If you have a contract that gives you the right to buy a home, then you have the right to assign that contract to whoever you want for a fee.

Its like options in the stock market. You can sell your right that you have to a home for a fee.

If you didnt have a contract that gives you that right to buy… then you would be acting as an agent if you got someone to buy that home.

David G.