I am looking to modify a contract so that I can assign it over to another investor WTHOUT being obligated to buy.
Does anyone know anything about this?
I feel as if I could modify the contract(s) myself without dishing out 100’s of dollars to a lwayer. I’d rather just have a lawyer review what I put together.
You always want to write your contracts:
AND / OR ASSIGNS
This is all that is required to assign your contract provided there is no state law prohibiting this.
If you can go back to your seller and ask for a modification of the first page of your contract with your name and re-do it as:
John Q. Public and / or assigns.
Then it is as simple as filling out an assignment form and entering it into escrow, notorized signatures for all parties.
No need for an attorney, if you don’t have the assignment form I can probable send it to you!
Unless the contract states otherwise, all contracts are assignable. You don’t if need to sign your name and then put and/or assigns. Its unnecessary. We’ve done many wholesale deals without having an assignment clause in the contract and without signing our name with “and/or assigns”.
I agree with Jeff. My form doesn’t have or I don’t add “and or assigns”
but my assignment agreement has a space for all to sign. Seller, me, and end buyer. Herbster
You are absolutely correct, in some states you do not have to have the sellers permission to assign a contract.
The only problem is last time I checked there were 50 states and 2 or 3 provinces of the United States.
In some states they do not care whether you assign a contract or not, some sellers I am sure are willing to sign an assignment whether your making an extra $10k, $20k or $50k.
But the reality is that most states require either an assignment clause in the contract or the "John Q. Public And / Or Assigns.
This removes the objection by seller that a legal contract is being given over to another party at a profit to boot!
Just remember when you and I write in this forum, we are making statements that Real Estate Investors in all 50 States read!
I add and/or assigns just to let the seller know I’m assigning the contract.
And/or assigns is not necessary, however if you feel more comfortable putting
it in your contracts, you should definitely do it…
what you should worry about is whether or not the agreement says this contract is not assignable, which can be found in realtors contracts. if you see that language draw a line through and both parties initial.
Ive read that you can use land trust to get around this?
No need to complicate and hide things by using a land trust for this.