Posted by Mark (SDCA) on January 27, 2000 at 15:09:02:
I can tell you one thing that “or nominee” does… It allows someone else to sign all those follow up docs.
For example, if you write your contract:
John and Jane Doe (buyers)…
Then John AND Jane Doe have to sign every doc…
However, if you write John Doe and nominee… Then only John has to sign…
Mark
Does anyone know if the CS RE sales contract assignable? - Posted by Cristy
Posted by Cristy on January 27, 2000 at 12:17:43:
I’m working on flipping a great deal. I have the investor lined up and the seller is willing to sell me the property for $30K below the assessed value. I’m going to take the seller the contract today, but I’m not sure that the Carelton Sheets Real Estate Sales Contract is assignable. If it’s not, what should I do to be able to assign it?
Thanks so much for your responses, they are such a great help.
Re: Does anyone know if the CS RE sales contract assignable? - Posted by Jim IL
Posted by Jim IL on January 27, 2000 at 13:41:33:
Cristy,
I am not familiar with your state laws, but I did talk to my attorney about this as well as many people here.
My attorney told me that any contract is assignable as long as the contract does not have a clause prohibiting assignment.
However, just because it is assignable does not remove you from liability.
The words, “And/or assigns” are not going to be enough totally.
I have a clause in my contracts that states if I assign the agreement, I am released from further liability.
Some people say that this is not even enough, and go the “Extra mile” and have the seller sign a release of liability upon assigning the agreement.
For me however, as long as the seller has signed something (the contract in my case) indicating that I am released from liability, then I am fine with that.
You should also make sure there is a “liquidated damages” clause in the contract, so should you or your assignee not perform, the only thing lost is the earnest money.
The clause should state that the forfieture of earnest money is the “sole” remedy.
Hope this helps,
Jim IL
Re: Does anyone know if the CS RE sales contract assignable? - Posted by Chris
Posted by Chris on January 27, 2000 at 12:57:51:
Look next to the blank where the buyer’s name is inserted. You should see “and/or assigns” next to that blank.
-Chris
Re: Does anyone know if the CS RE sales contract assignable? - Posted by Cristy
Posted by Cristy on January 27, 2000 at 13:00:58:
My contract says “or Buyer’s nominee” is that the same?
Re:What is legal difference between nominee and assignee? - Posted by Chris
Posted by Chris on January 27, 2000 at 13:26:57:
Christy-
“and/or assigns” is what I feel comfortable with. I remember reading some legal fine point that I can’t recite about nominee being different than assignee from an attorney’s point of view.
If this is your first deal you should have an attorney review your contract after you have described your deal in detail to him.
-Good luck, Chris
Re: Yes, they are different…but - Posted by Stacy (AZ)
Posted by Stacy (AZ) on January 27, 2000 at 13:35:17:
I can’t remember exactly how they are different. And I’m the one that posted that article from the attorney. If I can find the article again, I’ll post it. But, keep in mind, it was just one attorney’s opinion based on court cases specific to one state.
The conclusion was, however, that “and/or assigns” was the better of the two. Regardless of this, remember that without an assignment agreement signed by the seller, releasing you from all further liability, you are still on the hook to perform should your assignee fail to do so.
Stacy