My question is simple, once i assign a contract, am i legally out of the contract? What if my buyer does not close, do i loose the deal or can i go after him for the assignment fee?
For all intents and purposes, when you assign the deal you are out of the deal. If your buyer doesn’t close, that’s his issue, not your’s. As for your assignment fee, you should be collecting that upfront, not on the backend.
Any suggestions on a contract and process for collecting fees up front rather than at closing? Is a 1099 still necessary and isn’t it safer to just do so in escrow with a demand letter and contract? Thanks, -Timo :biggrin
So how do you go about collecting it up front? I have yet to assign a deal because no one wants to pay me up front. Does anyone have a contract that already has it written that your assignment fee is to be paid upfront? TIA!
Vena Jones Cox has a great call on this site…it gives lots of details. Her course is great and has all those answers.
Get them to give part up front if possible…or put it in escrow with your attorney. If they don’t close, you keep the fee. Make that very clear. If the seller backs out, they get the fee back.