Hello, my question is this. I am assigning a property that closes in three weeks. My buyer will get his own title search on the property.
Any thoughts on how is best to structure the assignment?
The way it is tentatively set up is…
Buyer gives me $100 deposit, then the balance of the fee when the title clears (about 2 weeks). At that time, he deposits the balance check with my “seller’s” attorney (a guy I’ve never even spoken with). I have to clear that with the seller’s attorney. When he’s paid the entire sum, I’ll execute the assignment contract. Only if the title is unmarketable he will receive all money back.
Any other thoughts?
Thanks,
That sounds like a ton of work to get paid.
Go to the seller and redo the contract in the new buyers name and add in another paper that says
Please pay morningnewsman LLC $___________(amount owed) on my behalf at the time of closing.
X___________________(Have seller sign)
Then you just go to the closing and get your check…
do you even need an assignment fee deposit?
buyer signs the contract to buy the property and pay you an assignment fee. done. in the contract, can’t you put in that if the buyer doesn’t perform due to his/her own fault - that they must pay you, the assignor, X amount.
i guess maybe a deposit is a good idea.
we purchased through assignment with nothing down. we just paid the whole shibang at the closing.
My prefered method is to get the entire thing and execute the assignment prior to closing. If my buyer walks, I keep the money.
But most buyers don’t feel comfortable handing over thousands of dollars to a stranger. So I at least need a deposit, because I’m going to turn away all other investors at that point. And I only plan to execute the actual assignment once I have full payment, or it’s in a safe escrow account. My main concern was giving this money to the seller’s attorney, whom I have not dealt with. Also, I don’t want them to feel compelled to include this on the closing documents…even though it’s between my and my buyer.