New the the RE world and have a property I found way below market value. I want to assign the contract to a local REI, but have to go through a RE Agent. I specifically told the RE Agent that I wished to have an “assign to” clause in the contract, but he said there’s no need in CA. Now is this true or is he blowin smoke. Also if I do sign the Agents papers and do assign the contract to the REI how do I collect the referral fee? Do I do it during escrow or just ask for cash up front from the REI?
In most states a contract is assignable unless it specifically states it’s assignable. When you sign the contract, simply write and/or assigns behind it. As far as collecting your fee, you can do it in several ways. You can add it to the sales price and do a simultaneous closing or you can assign the contract and have the end buyer sign the assignment and promissory note.
When a seller wishes to sell a house say for simplicity purposes $100k. When you wish to sell the assignment do you put the price as $105 as the selling or asking price when a buyer requests for more info or … at $100k + the 5k for finder’s fee ?