Posted by John Behle on November 13, 1998 at 12:40:51:
I’m not an attorney, so all I have to give you is my opinion.
When you sign a contract, you are liable. Assigning it doesn’t change that unless the other party specifically agreed to it in the original contract (doesn’t sound like it). If you assign it at this point, you are liable even if the party you assign it to agreed to hold you “harmless”.
If you have a tight contract, clouding the title would be needless. My process I mentioned of clouding the title specifically relates to the purchase of notes which is a little bit of a different ball game. Note sellers are sometimes very anxious and it is a market that can be very competitive as far as the bidding. Recourse and damages if a note seller sold to someone else are not as clear cut as in real estate. Your need to cloud the title with a notice of interest is much less in this scenario, but it can’t necessarily hurt.
A lot depends on your contract and the wording. If you are very concerned about these issues, read the contract carefully and consult a local attorney.