Posted by Jay on January 14, 1999 at 14:52:58:
I also need a contract and I looked at the one on the page you referenced, and was a little confused by it.
I’m also lost on the fee and when does it apply before
or after closing? If I was to use that form referenced where would I put the protection clause like Jackie said about approval of partner?
I need a assignment contracts? - Posted by d.newton
Posted by d.newton on January 14, 1999 at 08:29:37:
Could anyone tell me where to get assignment contracts. Does Carlton Sheets have them?
Re: I need a assignment contracts? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on January 14, 1999 at 09:56:00:
Here’s one…
http://www.insiderreports.com/legalfrm/b10182.htm
Stacy
Re: I need a assignment contracts? - Posted by Kristin
Posted by Kristin on January 14, 1999 at 08:57:31:
The simplest method of contract assignment is simply to use your state real estate contract, and add an assignment page. As long as your state’s approved contract does not specifically state that it is not assignable, it’s legal.
You can do an assignment page on your computer.
I, ____________ hereby assign the real estate purchase contract dated_______ referring to real property commonly known as___________, and legally described as______________ to ______________ for the sum of _______________ and other good and valuable consideration, due and payable at closing, on or before _____________.
Check to see if your state requires the page to be notarized. If so, the title closer can do it.
I don’t sign these until the closing, and I make sure the title closer has prior knowledge of the situation. That way, it will be included on the settlement statement and you are protected. However, if you don’t want either of the other parties to know what your assignment fee is, you’re better off doing a double closing with a passthrough or binder policy,and adding a few hundred to your fee (if necessary)for your closing expenses.
Hope this helps!
Good Luck,
KRistin
Re: I need a assignment contracts? - Posted by JPiper
Posted by JPiper on January 14, 1999 at 13:48:47:
In any contract that I assign, I have the assignee sign immediately, and pay the assignment fee at the time of signing. Waiting until closing is a good way to not have the assignee close, and thereby not earn your fee.
If this is unacceptable to any prospective assignee, I keep marketing the property.
Further, I use a much more extensive assignment form than this. I guess it depends on how much protection you want. I would suggest that people seek out a lawyer for the designing of this form. It will cost under $100.
JPiper
Re: I need a assignment contracts - Posted by Doris - Va.
Posted by Doris - Va. on January 14, 1999 at 10:38:15:
Hi Kristin –
Thanks for your great post. It was just the kind
of information that I (and many others I am sure)
needed. Of course I am still a newbie trying to my first flip. This question will probably sound
dumb but here goes.
You said " you’re better off doing a double closing with a passthrough or binder policy etc. etc. "
What is a PASSTHROUGH or BINDER POLICY and HOW and
WHY is it used??
Thanks again for your help. Doris - Va.
Re: I need a assignment contracts - Posted by Kristin
Posted by Kristin on January 14, 1999 at 11:24:17:
Doris,
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.
Kristin