assignment agreement trying to understand

Bird Dogs, Wholesaling
1

Hello everyone im trying to understand the assignment agreement a little better. I have an agreement and in it it reads.

In Exchange for the contract assignment, the Assignee agrees to pay_____________________.
This non- refundable payment is to compensate the Assignor for taking over their position in the
fulfillment of the said contract.

Would I put here the amount I wish to make say $2500? Or if im receiving a portion of the money at signing say $500 then would I only put in the agreement $2000? And once the agreement is signed does it go to the title company along with the purchase agreement?

This part is confusing so any help is appreciated :banghead

thanks for the help

2

You will put the total amount and the portion you recieve up front can be credited upon settlement. Thats one way of doing it.

3

The total assignment fee goes in the blank. You should also notate on the assignment contract if you received a deposit up front, so that it can be credited properly on the Settlement Statement.

And yes, the assignment of contract does go to the title company with the purchase and sale agreement.

4

Why do you even need to do this? Can’t you just assign the P&S and receive your assignment fee at closing?

5

Thanks all for the help

6

You could just assign it and try to collect your fee at closing, but without an assignment contract between you and the buyer you would have nothing on paper that says you will collect your fee.

Eric medemar

7

For example, I have a deal to assign. I get it for 100k and want to sell for 110k. Can’t I sign my buyer’s p&s for 110k? This is where I’m getting confused. OR should I get 110k on their p&s as well as on the assignment contract? I don’t want the buyer to always know what I’m making, so I want 110k vs. 10k profit I collect. Can someone please explain this…

8

As a 15-year banking veteran, I would specify how you are taking the money as briefly, yet succinctly as possible.

So, to use your $2500 examples:

Assignee to pay Assignor $2500 upon acceptance and execution of assignment agreement.

or

Assignee to pay Assignor a total of $2500 with $500 upon acceptance of agreement to assign and the remaining $2000 upon closing of the sale.

I hope this helps,
VickyS

9

I wanna know where and how did u, or do u obtain and assignment contract. i looked everywhere. :help

10

I’ll send you as assignment of contract.

11

Does the end buyer cut you a seperate check at closing, or is this all rolled into the hud1/closing?

I am a little confused on this.

12

If you are doing an assignment, you will get a check at closing issued by the title company, and it will show up on the HUD as an assignment fee.

The end buyer will bring the the funds for the entire amount of the purchase, and then the title co. will disperse the funds accordingly.

Make sense?

Steph :cool

13

Steph yes it does, I was under the impression that the end buyer was basically cutting you a seperate personal check? Thats why this seemed so confusing bc a 10k assignment fee check would be a nice chunk for someone to just cut to you.

When you assign do you have to go to closing, or do just the seller and the end buyer go to closing?

14

You don’t have to go, but it’s always a good idea just to make sure there are no surprises, and especially if the seller does not know you are assigning it.

Steph :cool

15

Allow me to hijack this thread…

Here is the beginning of my assignment of contract:

[i]FOR VALUE RECEIVED, the undersigned Assignor hereby assigns, transfers
and sets over to (Assignee) all rights, title and interest held by the
Assignor in and to the following described contract:

The Assignor warrants and represents that said contract is in full
force and effect and is fully assignable.[/i]

My question: what to put where it says “the following described contract”. Just name the parties involved in the orginal contract? Thanks!