Wholesaling and Assigning

hey granny4010, let me first begin by disclosing, that I am not an expert nor should you take my "opinion" as advice for moving forward. However I do feel that you should speak with a real estate attorney about your situation to get a better idea of the laws in your state. However, based on the info I have researched i can tell you what I know:

1) If it were illegal to do any of these strategies that Dean and his PMI team have been teaching, then they would be subject to legal action and therefore put in jail because they would have been doing the same things they have been teaching, so I have confidence that it is not.

2) Each state has different laws, so again it would be best to speak with a real estate attorney, and any leading experts in that area to establish which is truth and which is myth. In most cases (such as unknowledgable real estate agents) are looking out for themselves because they want to make a buck so they will tell you anything to keep you from attaining your goals, or do business with them. So remember, don't let obstacles get in your way. They are just challenges to overcome.

3) According to my research: (wikipedia.com - search: (Assignment (Law))

"Assignment of property rights

Real property rights can be assigned just as any other contractual right. However, special duties and liabilities attach to transfers of the right to possess property. With an assignment, the assignor transfers the complete remainder of the interest to the assignee. The assignor must not retain any sort of reversionary interest in the right to possess. The assignee's interest must abut the interest of the next person to have the right to possession. If any time or interest is reserved by a tenant assignor, than the act is not an assignment, but instead is a sublease.

The liability of the assignee depends upon the contract formed when the assignment takes place. However, in general, the assignee has privity of estate with a lessor. With privity of estate comes the duty on the part of the assignee to perform certain obligations under covenant, e.g. pay rent. Similarly, the lessor retains the obligations to perform on covenants to maintain or repair the land.

If the assignor agrees to continue paying rent to the lessor and subsequently defaults, the lessor can sue both the assignor under the original contract signed with the lessor as well as the assignee because by taking possession of the property interest, the assignee has obliged himself to perform duties under covenant such as the payment of rent.

Unlike a Novation where consent of both the lessor and lesse is required for the third party to assume all obligations and liabilities of the original lessee, an assignment does not always need the consent of all parties. If the contract terms state specifically that the lessor's consent is not needed to assign the contract, then the lesee can assign the contract to whomever the lesee wants to.

Absent language to the contrary, a tenant may assign their rights to an assignee without the landlord's consent. In the majority of jurisdictions, when there is a clause that the landlord may withhold consent to an assignment, the general rule is that the landlord may not withhold consent unreasonably unless there is a provision that states specifically that the Landlord may withhold consent at Landlord's sole discretion."

- in another post on this website, a fellow blogger found this:

"I found this info on lawyers.com maybe it will clarify the assignment question.

Assigning A Contract

One way to get out of a contract is what's called assignment, which is finding someone else to take over your obligations. Because contract rights are considered property, they can be transferred to others just like a piece of property such as a home or car.

Let's say you have a contract to purchase a certain number of gizmos each month from a gizmo seller, at a certain price. The contract runs for a year. You've decided gizmos aren't working out for you, and you'd rather not buy any more. As long as your contract allows it, and it's legal to assign contracts under your state's laws, you can just find someone else who wants to buy the same number of gizmos each month and "assign" your rights and obligations under the contract to him.

Most contracts permit an assignment as long as the other party to the contract approves the assignment. And many contracts require the other party to approve of an assignment as long as the assignment is "reasonable," meaning that the assignment won't jeopardize the security of the other party or increase the other party's risks."

So in conclusion, what I have gathered is that once you have a property locked up, all rights of the contract is considered "property" and therefore under your control. Therefore you reserve the right to do what you want with it. Assigning your right to purchase the property once it is locked up is your right. As for example, in that same article from wikipedia.com,

" An assignment (Latin cessio) is a term used with similar meanings in the law of contracts and in the law of real estate. In both instances, it encompasses the transfer of rights held by one party—the assignor—to another party—the assignee. The legal nature of the assignment determines some additional rights and liabilities that accompany the act.

Assignment of contract rights:

Assignment of rights under a contract is the complete transfer of the rights to receive the benefits accruing to one of the parties to that contract. For example, if party A contracts with Party B to sell his car to him for $10, party A can later assign the benefits of the contract - the right to be paid $10 - to party C. In this scenario, party A is the obligee/assignor, party B is an obligor, and party C is the assignee. Such an assignment may be donative (essentially given as a gift), or it may be contractually exchanged for consideration. It is important to note, however, that party C is not a third party beneficiary, because the contract itself was not made for the purpose of benefitting party C. However an Assignment only transfers the rights/benefits to a new owner. The obligations remain with the previous owner. Compare Novation.

When assignment will be permitted:

The common law favors the freedom of assignment, so an assignment will generally be permitted unless there is an express prohibition against assignment in the contract. Where assignment is thus permitted, the assignor need not consult the other party to the contract. An assignment cannot have any effect on the duties of the other party to the contract, nor can it reduce the possibility of the other party receiving full performance of the same quality. Certain kinds of performance, therefore, cannot be assigned, because they create a unique relationship between the parties to the contract. For example, if party A contracts to hire an attorney to represent her in a civil case for a fee of $1000, she cannot then assign her contractual right to legal representation to another party. Note however, that party A can assign her right to sue under the same claim she contracted with the attorney to pursue."

Hope that that helps. good investing

Thanks for your input, I don't have 250.00 to pay an attorney, they are kinda greedy here but I did write a letter to the Real Estate Commission and cc the State Attorney General for his opinion. I figured I would cut to the chase I will let u know what I learn. In the meantime I'll do deals out of state:) or use a realestate agent for anything I find in WY. My husband wants a farm for his birthday so I need to get busy. LOL

Thanks again
Donna

I looked at the Wyoming statute. I believe the loophole here is 33-28-104. Acts constituting person broker, associate broker or salesman.

"Any person who,for another, with the intention or upon the promise of receiving any valuable consideration offers, attempts or agrees to perform, or performs any single act defined in W.S. 33-28-102(a)(iii), whether as a part of a transaction or as the entire transaction shall be deemed to be acting as a broker, associate broker or salesman within the meaning of this act [33-28-101 through 33-28-206]."

I read this to mean that only when acting for another person, it would require that you were licensed. When doing an assignment, you are acting for yourself, which is legal.

I would be interested to hear the response of a real estate lawyer or the Wyoming Attorney General.

Al

ya thats what I read. If you are looking for someone else, you need to be licensed. However, since you are taking the property that you locked up, which by law, once the property is locked up, all rights to purchasing the property are yours. This means for a selected period of time the property is yours and you can therefore "sell it" to another party. You are acting on your interests, not someone elses.

Thats what I understood at least haha. Good job!

I'm impressed! When we first met, I remember telling you about my assignment and you were shaking your head saying it's illegal. You've come a long way baby! I'm SO glad to hear that!!

thanks everyone for your input, i pointed out what AL said to the attorney I talked to, he smiled and said true but be prepared to fight the brokers and agents in this town. The can fight the sale thus jamming it up so I lose it. Can you say boom town greed. So I can thwart that by going to FSBO's and doing shortsales directly with the banks and finding a realestate agent willing to work with me. It's all good. Now I just need to find some buyers and I'm on my way.

Thank you again, you all are the best!!!!!!!!!!!
Donna