I know you are not attornies, nor did you stay at a Holiday Inn last night, but nevertheless I had a question concerning our Indiana Board of Realtors contract.
Based upon the following statement in the contract, do you think it is assignable?:
“This offer shall be construed under and in accordance with the laws of the State of Indiana and is binding upon the parties’ respective heirs, administrators, legal representatives, successors, and assigns.”
Also, it does not say anywhere in the contract that it is NOT assignable. I seem to remember several RE gurus saying that if the contract does not specifically state that a contract is NOT assignable, then by default it is asssignable.
One more thing… There is also a statement in the contract that says “all rights, duties, and obligations of the parties shall survive the passing of title to, or an interest in, the Property”. What impact does this statement have on the assignability of the contract to another investor?
I have read from some of the posters here that contracts are assignable and have also assigned and been assigned some myself. Read too that some banks that are selling REO’s will not allow you to assign the contract and actually put that in the contract too. They got tired of newbies not being able to flip the deal.
Flippers used to and some still put and or assigns on the contract where they put their name as buyer. This sends up red flags to sellers and I would suggest that you do not do it.
The other statement really has nothing to do with assignment other than the new buyer has to abide by it too.
Good luck and hope this helps some
Thank you,
Ted P. Stokely Jr
11505 Sw Oaks
Austin, Texas 78737
“This offer shall be construed under and in accordance with the laws of the State of Indiana and is binding upon the parties’ respective heirs, administrators, legal representatives, successors, and assigns.”
I’m not familiar with the laws of Indiana, so please take my reply in that context.
There is similar language in the agreement of sale form used by RE agents in PA. However, it’s been my experience that where a buyer wants the right to assign the contract, the PA buyer puts specific language in the contract–like Buyer shall have the right to assign its interest in this Agreement with notice to Seller.