Posted by Stacy (AZ) on January 14, 1999 at 12:49:33:
Jim, I received a fourth opinion from a lawyer, which (I think) addresses your concern. If I interpret correctly, the assignment of a contract that contains seller-financing provisions is perfectly acceptable, legally. It is a fine point, I agree. I also think I would have done what you did if someone tried to assign one of my contracts, although I don’t think if taken through court there would have been a basis. The threat of legal action, especially regarding something as vague as assignments, would probably be enough to stop the assignment. What do you think?
Reply from lawyer #4:
You haven’t altered the seller’s risk one iota by assigning your rights under that contract to any buyer you wish. Nor have you lessened YOUR risk in the slightest, as upon default the property is the primary
security, you are secondarily-liable and the person to whom you “assign” the contract has tertiary liability.
Your contract with your Buyer does not affect your relationship to the person to whom you obligated yourself to pay the purchase price.