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Author Topic: Assignment contract question  (Read 16729 times)

Offline KCinvestor

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Assignment contract question
« on: December 07, 2006, 08:23:41 am »
I'm a new wholesaler, I have a decent buyers list, and now I'm ready to start
looking for deals.  I have some questions about the assignment contract.
I've downloaded a couple contracts, one from Bronchick's site, and another from
some other RE sites on the internet.  My question is, does the seller have to sign
the assignment contract?  

The one I downloaded from Bronchick's site has a space for the seller to sign, and
I have 2 others that do not.  Do you tell the seller that you are going to
assign the contract for a fee?  I was going to tell them something like
"I work with a couple partners, and they may be the ones getting the financing"
I'm just trying to straight before I start putting properies under contract.

Thanks in advance.

Offline Brandon Lambert

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Re:Assignment contract question
« Reply #1 on: December 07, 2006, 09:27:40 am »
I have never had a seller sign an assignment contract, nor do I go in to detail about the assignment process unless they ask.  By the way, I have never had a seller ask.  
Thanks,
Brandon
Eliminate your competition!!
www.probaterealestatedeals.com

Offline djmcgee

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Re:Assignment contract question
« Reply #2 on: December 07, 2006, 11:07:38 am »
Would you mind supplying me that website for Bronchick?  I've been looking for some assignment contracts.  Thanks

I'm a new wholesaler, I have a decent buyers list, and now I'm ready to start
looking for deals.  I have some questions about the assignment contract.
I've downloaded a couple contracts, one from Bronchick's site, and another from
some other RE sites on the internet.  My question is, does the seller have to sign
the assignment contract?  

The one I downloaded from Bronchick's site has a space for the seller to sign, and
I have 2 others that do not.  Do you tell the seller that you are going to
assign the contract for a fee?  I was going to tell them something like
"I work with a couple partners, and they may be the ones getting the financing"
I'm just trying to straight before I start putting properies under contract.

Thanks in advance.


Offline KCinvestor

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Re:Assignment contract question
« Reply #3 on: December 07, 2006, 01:04:02 pm »
Would you mind supplying me that website for Bronchick?  I've been looking for some assignment contracts.  Thanks

Sure here you go..
http://www.legalwhiz.com/freedownloads/

More free forms.
http://www.totalrealestatesolutions.com/realestateforms/index.cfm


Offline djmcgee

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Re:Assignment contract question
« Reply #4 on: December 07, 2006, 01:42:40 pm »
Thanks alot

Offline kbird

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    • Little City Properties, Win-win Solutions for Austin Home Sellers
Re:Assignment contract question
« Reply #5 on: December 07, 2006, 02:08:54 pm »
If you want to keep your transaction private, you may want to not use a contract assignment form at all. When I wholesale property, I use a standard contract, one for buying and one for selling the property. I submit both to the title company and they do a double closing, using the buyers' cash to fund the purchase price to the seller and cutting me a check for the difference.

I'm sure there's more information elsewhere on this site about double closings, why they're favorable to contract assignments, and how they work.
Kary Aycock
Principal investor, Little City Properties, LLC
Private hard money lender, Little City Lending, LLC
Realtor and Broker, Austin Board of Realtors
www.littlecityproperties.com

Offline KCinvestor

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Re:Assignment contract question
« Reply #6 on: December 07, 2006, 02:10:55 pm »
I have never had a seller sign an assignment contract, nor do I go in to detail about the assignment process unless they ask.  By the way, I have never had a seller ask.  
Thanks,
Brandon

Thanks, another question I had is does your purchase agreement have to have
"and or assigns to" on it?

Offline kbird

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Re:Assignment contract question
« Reply #7 on: December 07, 2006, 02:20:25 pm »
Depends on your state, as I understand it, here in Texas all contracts are assignable unless they explicitly state otherwise.
Kary Aycock
Principal investor, Little City Properties, LLC
Private hard money lender, Little City Lending, LLC
Realtor and Broker, Austin Board of Realtors
www.littlecityproperties.com

Offline Brandon Lambert

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Re:Assignment contract question
« Reply #8 on: December 07, 2006, 07:57:03 pm »
I live in Texas too and have heard that all contracts are assignable, but I still put and/or assigns after my name.  I just like to be sure.  I have had one person ask me what that meant and I explained it to them that I do not know what I am going to do with it.  I may assign it to another company that I am involved with.  That is not a lie, just a veiled truth.  I am involved with the guy/gal I am flipping to in that I am going to make money from them.
Somebody above said you can circumvent the assignment process with a double close.  While this is true, I usually save that technique for large profits (over 5K) because I would have to pay two sets of closing costs and a title policy.  Besides, my investors don't get spooked if I make 5K.
Eliminate your competition!!
www.probaterealestatedeals.com

Offline DeeinAustin

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Re:Assignment contract question
« Reply #9 on: December 07, 2006, 09:01:46 pm »
No need to put and/or assigns, but you can. We've never had a seller make an issue of it, but if they do, they'd be in default if they chose not to close. I think most people discuss assignments to make sure the seller doesn't get upset when the deal is almost done.

I'd rather assign than do a double-close.
Principal Broker, Copeland Group Realty
Green Construction and Investments
http://www.MyClientsBuyLand.com
My Clients Buy Land...and Houses Too!

Offline mpleasant

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Re:Assignment contract question
« Reply #10 on: December 10, 2006, 01:33:21 am »
How do you close a deal when the end buyers lender wants the Purchase contract be between the end buyer and seller?

Offline Melissa

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Re:Assignment contract question
« Reply #11 on: December 10, 2006, 12:01:13 pm »
Kbird, are you saying your Title company will use the funds from your buyer to pay off your seller?  

Offline DeeinAustin

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Re:Assignment contract question
« Reply #12 on: December 10, 2006, 12:24:06 pm »
I have never had a seller sign an assignment contract, nor do I go in to detail about the assignment process unless they ask.  By the way, I have never had a seller ask.  
Thanks,
Brandon

I'm in a contract now and the buyer is asking my seller to sign his assignment contract. He said the buyer's lender is requiring that the seller acknowledge the assignment. I told the agent he may want to do a double-close to keep my seller out of that side.

What do you all think?
Principal Broker, Copeland Group Realty
Green Construction and Investments
http://www.MyClientsBuyLand.com
My Clients Buy Land...and Houses Too!

Offline Melissa

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Re:Assignment contract question
« Reply #13 on: December 10, 2006, 03:17:26 pm »
Dee, that is the way we are pretty well forced to do it in the Dallas area.  The Seller knows what he needs to know, the rest is ABSOLUTELY None of his business.  IMHO. Melissa

Offline Brandon Lambert

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Re:Assignment contract question
« Reply #14 on: December 11, 2006, 06:31:01 am »
I agree that you want to double close.  I have never had any luck with lenders allowing either a double close or an assignment.  They don't like the double close because of title seasoning.  They don't like the assignments because they only want to fund the amount on the purchase contract.  I require all my buyers to buy with cash only.  
Eliminate your competition!!
www.probaterealestatedeals.com

 




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