Contract Assignment Question

General Real Estate Investing
1

I was speaking to a friend of mine who owns a title insurance company. She said that if I get a contract and want to assign it. All the terms, prices, and everything have to be EXACTLY the same on the contact. Meaning I can’t get a contract for $100,000 and assign it to someone and charge them $120,000. Am I hearing this right. Or?

  1. Am I hearing it wrong

  2. Do I make the money buy charging them for the contract like say. $10,000 to assign them the contract.

  3. Is there just something I am missing?

2

The terms of the contract remain the same. You are assigning your contract (and its terms) to someone else for an assignment fee.

In other words they are paying you for your contract. I talked to 9 title companies in my area and 8 outta 9 didn’t do or understand assignments or simultaneous closings. I talked to a few RE Attorneys who said it’s no problem and pretty common.