Assignment of an assignment?

Bird Dogs, Wholesaling
1

I am looking at a property either today or tomorrow that is being assigned by a wholesaler. Although I’m new to this, I assume that the wholesaler assigned a contract with the seller of the home that says “or assign”… or something very similar. If there is enough profit potential (and there is in this property that is a rehab), could I (and how would I) take over the assigment with the wholesaler and then assign the property to someone who will be doing the rehab?

2

yes u can do that. you just pay the assignment fee to get the contraact then re assign it before escrow basically.

3

tsboss, thanks. So basically I would just write “and or assigns” within the contract?

4

correct

5

thanks

6

Would someone who is up on contract law correct me if I am wrong.
The way I understand It.
A contract is assignable unless there is wording in the contract stating otherwise.

Bruce

7

IndyBruce,

I don’t know that it’s that cut and dried (at least in PA). RE attorneys I know who are representing a buyer always put something in the contract specifically allowing the buyer to assign.

Nancy

8

The contract is not automatically considered assignable unless it is stated.

To be assignable, The buyer would put successors or assigns after his name. (example)
John Smith, successors or assigns.

Also, there should not be a non-assignability clause later in the contract. If so, it should be crossed out and initialed by all parties to the contract.

It is really that simple as I have done it many times. Then when you go to assign it, you and the assignee sign an ASSIGNABILIY LETTER. The seller is not involved at all.

I mentioned earlier, I have a copy of an assignability letter available if you are interested.

Jeff

9

Now Now CharlottePlayer

Do not put words in my mouth.

10

Sorry Bruce i mean JeffCt. ;D

11

I will take a look at your assignment
agreement if you have an extra one
floating around.

Thanks

12

I find many posts on here are full of conjecture and dangerously so. Several of the professed new investors are reading these and not understanding the spirit of a contract at all. When a buyer and seller enter into a contract that is what you have. When a new investor asks: if i can’t assign the contract do i have to buy the property?..dah! If there is an assignment of contract, it is not renegotiated, the seller believes and aptly so that they have a contract to sell, the only thing that changes is who finally ends up with the property, the original buyer is fully responsible to the seller to execute full details of the original contract. New investors out there are being coached into believing this is a risk free business, nothing could be further from the truth!

13

Jeff,

I would be interested in a copy of your assignability letter if it’s not too much trouble.

Thanks,

Shelley~

14

Can I get a copy to please??
Thanks!

15

Jeff
Could you send me a copy too

Thanks Kevin

16

Question?
To sale your contract or assign, does it have to be a cash buyer only or is there lenders that will accept an assignable contract??

Thanks
East Coast Girl :slight_smile:

17

I know the floodgates have opened now! But Jeff, can I get a copy of the assignment letter as well?