When doing an assignment of contract, do you have to use an actual assignment contract? I have heard that a different way to do this is, once you have the contract with the seller, you just need to write a clause right in the contract stating that you are assigning all rights and privileges to buyer for $5000 to be payed at the time of settlement to assignor (your name).
By doing it this way, you would not even have to have a separate assignment contract.
Has anyone done it this way?
Josh
My standard purchase agreement has all types of “weasel” clauses in it so I am not required to buy it, and so I could assign it to anyone if I wanted, but I wouldn’t bother disclosing the exact amount you plan to assign it for. Leave your options open. After all, you are the one who is buying the property and you should have the right to do whatever you wish with it.
““Buyer must approve of the property’s title status and marketability before this transaction can be closed.
Buyer may assign Buyer’s rights, title, and interest in and to this purchase agreement to a third party.””
Scalf31
Yes, you can add an addendum to the contract, but it is just quicker and cleaner to use an assignment of contract. I do notify the seller so he just doesn’t get a call out of the blue from a stranger.
However there are times when an addendum is used to change the contract and the buyer because of circumstances. Or even creation of an entirely new contract but I don’t want to write a book.