Assignments at Closing

I have an assignment deal that is about to go South. How is an assignment fee dealt with at closing? I have a contract to purchase a property for 190,000 and an assignment agreement with a 20,000 assignment fee. the original seller’s attorney doesn’t want the HUD-1 form to say the sale price of the house is 210,000. Of course my lawyer is at lunch and I don’t know the answer. Anyone have experience with this?

yes, but then don’t I have to pay closing costs? We are trying to avoid all that by just assigning the contract.

I don’t know where you are located, but here closing costs on buying a property can run up to 3% of the cost of the property and then there are closing costs for selling the property. That is almost $7000. I know there is a way to assign the contract and not pay those costs, I just don’t know how that works on the Hud-1 form and either does the assignee’s title company. Just trying to maximize my profit and learn at the same time.

Howdy Ekobar:

I got upset with you yesterday and erased my responses. You did not even know where I am from but yet it is pasted all over the bottom of my 1400 plus posts. I was trying to help and you did not understand. Her is how a double closing works.

You close with seller. What are the closing cost? Title policy paid by seller usually, commission also paid by seller. What are your costs. Usually 50 % of escrow fee and some express mail stuff and the legal fees to prepare the financing documents which you will not have. Your costs out of this closing will be small.

You close with buyer. Here again the expenses will be small. The buyer will pay for the financing papers. You will have to pay for the second deed maybe $75 extra and again perhaps 50% of the escrow fees.

Talk with the escrow officer and get an estimate of the additional fees. Only one title insurance policy will have to be purchased and only one commission. Most of the expenses will be born by the buyer and seller and not you. To add up $7000 in closing costs and think you have to pay all those is totally narrow minded. I truly hope this helps you work out your dilemma.


When I am calculating closing costs, I am including title policy, title insurance, recording, deed, taxes, etc. This can cost upward of 3% of the property (something about taxes are only paid yearly here). There is no commission b/c I found this house through a cold call, no agents. I had read on this board about assignments so I was just asking about the process. If I am wrong about how I am calculating the closing costs, please let me know. I have bought a lot of properties, but usually for myself (I move a lot) and this has always been my experience. I would also need to have my loan in place which includes a 1% origination fee. As far as I have experienced, the seller really doesn’t pay anything except some recording costs. I don’t think that asking questions and trying to learn is being narrow-minded.

Howdy Ekobar:

I am confused perhaps. Why do you have a 1% loan cost if you are the middleman (wholesaler)? Someone will have this cost if you close once or twice or three times. This is hearsay but I head of a 5 time deal closing where the property was flipped 5 times and 5 closings but only one new loan.
If you are the middleman your buyer will have a lot of expense and the seller will have a lot of expense but you should have few few being in the middle. Call the title agent and explore the costs.

Sorry for the narrow minded cut. At least you now know that I am from Austin and have gotten you excited and motivated to get the deal closed and not even think of losing the deal. I have egg on my face and you have $20,000. I would swap. Hope I helped


A lot has to do with how you structure it. When I bought my prim. res. we agreed to each pay half the closing costs. I would imagine when people say things regarding the seller paying all closing costs, I am thinking they are modivated sellers who want thier house gone.

It is a bit confusing to me though, because I would expect a seller, regardless of how modivated, would not want to or not afford to pay closing costs on a home thier selling at a rock bottom price, yet people consistantly say they do so…

Could vary by state, but I think anything other then broker commision and loan related fees are set in stone as to where they come from (seller pays commision taken out of the purchase prise of the home - shouldn’t effect closing costs and buyer pays for thier loan)

Ideally if your wholesaling, you want the seller to pay as much of it as they can, and your investor buyer to pay as much as they can on a double closing.