In regards to the issues of the assignment, the previous responses referred unanimously to the wording of the contract and escape clauses. To save time, let’s assume the wording on assignment and escape clauses is in place.
When a wholesaler signs a contract (with the assignment clause) with an original buyer, their contract includes escape clauses that the wholesaler puts in. Normally escape clauses have time limits, for example, inspection clause is for 14 days. (Financing clause is until close of escrow). Granted, all escape clauses have to be addressed in good faith. (Presumably the deposit is with the escrow.)
For example, the wholesaler assigns the contract to an end buyer. Normally, at least in California, that would mean the contract now is between the original seller and the end buyer. The wholesaler is legally out of the transaction.
However, now, because of the time passed, the end buyer is out of the escape clause. Suppose, the end buyer doesn’t close at the time specified in the original contract.
Apparently, the original seller has a legal right to the wholesaler’s deposit.
I would appreciate investors’ experiences IN REGARDS TO THIS PARTICULAR ISSUE.
Please note that in California there are no deposits of $1 or $10. It could be thousands, could be upper hundreds even for very motivated.
And the assignment fee could be realistically SMALLER, not covering the deposits. After all there is limit to the assignment fee.
Any experiences, anyone!
Request: if you have your questions, please open a new topic. Otherwise we all lose the issue we discuss.