Assignment of contract

Folks need to read Deans "30 days to Real Estate Cash Book and Be a Real Estate Millionaire.....

you would become the buyer and then "ASSIGN" hence "assignment of contract" your position in the contract to your end buyer. collect your assignment fee at closing and live happily ever after...

but wait who pays the realtor ?? "THE SELLER PAYS THE FULL COMMISSION" THEY HIRED THE REALTOR. you don't pay the realtor.

WALT

you should fill out some info on your profile so that other investors on this site can know a little about you, where you're from... and network with you.

For an assignment contract, will the seller need to be informed that the contract is being assigned to another buyer? I was just talking to a title agent and he's saying that since the assignment of the contract is an amendment to the original contract, the seller has to agree (sign off) on the amendment in order for that to occur -- is this a correct statement? Any comments is appreciated.

Thanks,

Dan

But with an assignment of my contract to a tenant/buyer, there won't be a Realtor commission because there won't be a sale. I want to be fair and assure the Realtor gets paid for his or her effort. Doing so, I'm more likely to get cooperation from the Realtor. My suggestion is to get one third of the Realtor's commission from the buyer (in addition to my assignment fee), I will pay one third, and the seller will pay one third. And that would represent a two third savings to the seller since the tenant/buyer and I will each pay one third. If the Realtor finds a buyer first, I will just walk away from the deal. Why would the Realtor object to that arrangement?

Yes... That is a correct statement. To make this legal if I assign the contract to a tenant/buyer, the seller has to agree to the assignment AND has to approve the tenant/buyer as a new player in the game.

When signing a contract, per instructions, adding "and/or assign" with your name as the buyer will in essence inform the seller that the contract may be assigned to another buyer. The question I asked (post #3 above) pertains to adding an addendum to the contract. I think now (having thought about it) that it is not necessary to add an addendum as long as the phrase "and/or assign" is included with your name --correct?

First I want to welcome each of you to this site

If you are "assigning" a contract you are assigning all the rights to that contract to your buyer. That means that you must first have a " purchase agreement" in place with the seller where you agree to purchase the property at a certain price and agree to close on a certain date ( usually within 30 days) and both you and seller signs that contract in agreement.
The Agents gets commission paid on that contract by seller on whatever closing date you agree on.

If your assigning that "purchase contract" to a buyer then that buyer has to agree to ALL of the terms in that contract. You then have the buyer sign an "assignment" contract that will transfer the "purchase" contract between you and the seller over to the buyer.

You can only assign something that you have in your control thus you must become the buyer on this property in order to assign it. You cannot play " Real Estate Agent" and attempt to get paid for finding a buyer before the Agent does. Only Agents can sell houses we sell contracts.

You really should read Dean's book as your answers are all in there

Also a seller DOES NOT have to sign off on an assignment as that is an agreement between you and the buyer and really has nothing to do with the seller.

Carol yes I like what you said.

if the purchase contract has the assignablility in it the and/or assigns AND the seller signs your contract then the seller has agreed to allow you to assign the contract. If that is not in your contract & you want to add and/or assigns to your contract after the seller has already signed it then yes you will have to or your agent have to send an amenment to include that signed by you & then your seller. But yes I agree with Carol these and many questions are in the 30 day book make sure to sutdy it ok.

I wouldn't worry too much about all of this when the time comes and you have a deal you can always address this issue-first read book-build buyers list mainly.

If you are doing a lease option & I have come close to doing one & have done 4 deals wholesales, YOU are the one putting it under contract & YOU are the one approving the tenants NOT the sellers because you are the one again who has it under contract, YOU are buying it, then turning around & getting a tenant buyer.

And if you are doing a lease option you are not assigning it you are doing seller finance, but Karen is the expert she can answer all your questions on this, Donna do too & others, Rina etc.

Thank you to all for your comments and responses, but I don't think you understand my question...
If I write a contract to buy a house on a lease/option-to-buy basis, and then assign that same contract to a tenant/buyer who will pay rent for ten years and then buy the house, the Realtor will be forced to wait ten years to be paid his/her commission. The Realtor would not be a happy camper.... with justified reluctance to go ahead with this.

My solution is to get the Realtor paid today rather than ten years ahead. To do that, I suggest that my tenant/buyer pay 1/3 of the Realtor's commission, I would pay 1/3, and the seller would pay 1/3. If the Realtor locates a buyer before I do, then I walk away from the deal and the seller pays 100% of the Realtor's commission, unless the buyer and seller negotiate another arrangement. Why would someone object to that arrangement?

Actually, when it comes right down to it, the contract with the realtor does not involve you and the buyer AT ALL. It is between the seller and the realtor.

If you want to make nice, you can offer the realtor a months rent to walk away. That is the rule of thumb in this situation.

In reality, the seller is actually "renting" you the property until you exercise your option to purchase. He can just cancel his contract with the realtor and tell him he has decided to rent the property at this time.

I would NEVER, NEVER ask my buyer to pay 1/3 of the realtor's fee. They are already paying you an option fee. I would be very irritated as a buyer to be asked to do this!

Karen

Art, If you want this simplified even more you could always pay the realtor a fee out of your option fee that you will get from your buyer but while writing this yea Karen, that isn't how it works. The fee for the agent always always comes from the seller period in every transaction in the whole country, that's how it is & I wouldn't worry about if I were you.