Re: I need a assignment contracts - Posted by Kristin
Posted by Kristin on January 14, 1999 at 11:24:17:
Your question is definitely NOT dumb. If you don’t ask, you won’t learn.
First of all, let me say that you will want to use a more sophisticated assignment page if you plan to assign prior to closing, so that your interest is completely protected under your state law. But if you use it the way I did, that simple form is all you’ll need.
Disclosure out of the way, now on to your question.
When doing a double closing, in Texas and several other states I work in, a binder or passthrough policy is the name of the title policy used for double closings. Basically, it’s a title policy which notes that the title will “pass through” a third party between the seller and the final purchaser. The middleman only takes title for about 5 minutes in most cases, but that info has to be disclosed to all parties. Using this type of closing keeps your fee under wraps so that neither side develops a sudden problem with the amount you are taking out of the middle.
Jackie in Dallas has commented recently that she uses this type of closing whenever her fee is in excess of $5K, and considering her expertise in flipping contracts, I would suggest you use this formula as well.
Check with the title companies in your area to verify that they will offer this type of policy. A title company in Houston recently changed their policy, and now require a full title policy to the middleman, substantially raising the title fees. Needless to say, I’ve stopped using that title company.
Hope this helps, and let me know if you need anything else.