Posted by Kristine-CA on March 04, 2002 at 19:59:13:
I found the property through some online research on vacant and tax defaulted properties. The deceased owner had the same last name as the owners of other property I was researching. I was able to see that the owner had died and that someone had opened a new probate filing. I called the attorney listed, left a message and she gave my name and email address to the executor-to-be. We did the entire thing by email and FedX. The executor and I have never spoken.
From my limited experience thus far, assigning deals is not a problem. First I had to find a property that I felt I could re-sell for more. Closing on the deal is just paperwork. And money!
Please help with my ASSIGNMENT deal - Posted by Kristine-CA
Posted by Kristine-CA on March 04, 2002 at 15:52:30:
Hello everyone. I have a house under contract (for 11.5K, but that’s another story) and am in escrow (with $100.00 deposit) that won’t close until a 21-day waiting period because of requirements having do with title insurance and probate. After explaining the choices to my buyers, they would prefer to buy my contract rather than wait for me to close on it. Me too, as I would have to borrow the money to close. And they want the title insurance and all of us want the closing and other miscs. costs to be paid only once. This escrow company won’t do a double close. (This was the seller’s choice of company as she lived out of the area and I let her pick. Oh well.) I’ve agreed to assign my interest to my buyers for $4700.00 and they’ve accepted.
The escrow company has no problem with the assignment, but my question is do I have to get the seller to agree to this assignment. I’m not worried about being held liable for anything, but I am wondering if she has to agree to my choice of assignee. As long as my buyers do everything I agreed to do, does she have any say in the matter?
Also, is there a customary courtesy or way of dealing with this?
If all else fails, I will close on it myself, but I am trying to learn the not-my-money way and I think I am in the home stretch on this one. I’ve learned 90% of what I know about REI on this board and wouldn’t have gotten this far without you. It’s been a totally amazing and empowering experience.
Any thoughts, criticisms, caveats? Thanks. Sincerely, Kristine
Re: Please help with my ASSIGNMENT deal - Posted by Stacy (AZ)
Posted by Stacy (AZ) on March 04, 2002 at 16:20:43:
This depends on how trustworthy you are. Your contract is between you and the seller. You can assign the contract to the new buyers, and have them sign an assignment agreement that indicates they accept all liability and hold you harmless. Then you’re covered between you and the assignees. However, you are still legally bound to the agreement between you and the seller.
Suppose the worst happens. The seller expects $11.5K on the closing date, and is depending on getting the money on that date. After all, you’ve committed to it. Then suppose the assignees for some reason cannot come up with the $11.5K. Who does the seller come after? You.
The safest thing to do in your case is to get a release of liability signed by the seller. Or, if you’re absolutely sure your buyers will close, you may choose to risk it this time, and forego the release.
All of my purchase contracts have a clause the states the contract may be assigned, and the seller will release me from liability and hold me harmless upon assignment. That way, I don’t have to come back and explain it if I assign a contract.
There is no reason to ask the seller, it is nothing to do with her.
Your lawyer or escrow company should be able to handle this quite easily.
The only exception would be if she was taking back a mortgage. In that case it would be her business.
In future you could add the words “or assigns” on the offer after your name. This gives you the right to assign the deal to someone else, with the seller’s approval already in writing.
The key is, just because the buyers agree to the assignment, it doesn’t mean the seller has released you from liability if things go South, so get it in writing.
Re: Please help with my ASSIGNMENT deal - Posted by Kristine-CA
Posted by Kristine-CA on March 04, 2002 at 16:15:22:
GL-thanks for your reply. My contract indeed does state my name and “or assigns.” It’s a cash deal, and I know that in the end she doesn’t care who buys the property. I was just wondering if there was a customary way to deal with this. Especially since I am the one who offered to buy the property and wrote the purchase contract.