We have signed a “purchase and sale agreement” with a seller and now we have a buyer interested in the property. Do we sign another “purchase and sale” agreement with the buyer and then later at closing sign the “assignment of contract”?
Please help! Thank you!
You could do it that way. Or if your contract with the seller is a real person and not a bank, you can do a P and S agreement with your buyer and then have your seller sign a Pay/Invoice contract release agreement for your fee so the buyer doesn’t know what you are making.
The buyer would just close direct with the seller for the amount that you contracted with the buyer for. The invoice will instruct the closing attorney to cut you a check for the difference.
It shows up on the HUD1 as a “Pay Release Agreement” on line 506. At least it did on mine.
If you just do a straight up assignment before closing you just have the buyer fill out an assignment form for your fee to be paid up front or at closing whichever you agree to and let the buyer close with the seller for the remaining balance owed to the seller.
The assignment form will instruct the closing attorney to pay you at closing if you take it to closing.
If you have direct contract with the bank then you will not be able to assign the contract. There are ways around it however.