Posted by Brent_IL on September 11, 2003 at 23:25:28:
If you are assigning the contract you cannot collect an earnest money deposit because only the owner can collect earnest money on a contract to purchase. You can collect a partial assignment fee with the rest to be paid out of escrow. You?d need a liquidated damages clause, so you can keep the cash if they don’t settle. (not legal advice) Most assignment fees are paid out of escrow unless the buyer writes you a check for the whole amount, e.g., a wholesale rehab flip.