"Which Contract to Use" has still not been answered!

I asked that question like 1 week ago and not 1 person had an anwser for the proper agreement for RE-ASSIGN, DGadmin, please tell us what is the proper purchase agreement to use on this web site for a RE-ASSIGN a PURCHASE AND SALE AGREEMENT OR AGREEMENT TO PURCHASE AND DO I STILL NEED A ASSIGNMENT OF CONTRACT CLAUSE???????

Neither of them are designed for reassignment, but you could use either as basis for a reassignment contract. Both are contacts for a straight purchase, so they have conditions in there you don't want for a reassign, and they are missing conditions you do want. Those conditions (wants and don't wants) have been listed a bunch in the other threads, so you can use either as a basis, then hack it up accordingly, and then submit it for review.

I'm not a lawyer so I can't tell you exactly what needs removed or added or what language to use, both because it would be illegal for me to do so, and secondly because as much as I would like to think I could write litigation proof contracts, I can't.

I'm going to talk with our team and see if we can get a lawyer to draft a generic reassign and post it here as an example.

-DGadmin

No problem. That makes sense. But I think since there is so much talk about reassigning properties and how that needs to be laid out, it would be great if you guys could provide some SAMPLE legal documents for us to work off of with our own attorneys... that way we know we got the main points to start off with. Maybe provide a folder under 'contracts' with the appropriate documents for reassigning a deal.
Thank you!

Assignments of contract can be done with most contracts so your Real Estate Purchase Contract should work fine. Assignment of contract essentially is selling or assigning your rights to a contract. This gives the new buyer the right to purchase the property using your contract. We as investors often sell this right or assignment of the contract.

Here are your steps:
1) Put a contract on a property you think you can assign.
a. Ad "and/or assigns" next to your name in the purchase slot.
i. Example: Purchaser: John Doe and/or assigns
b. "This contract may be assigned. In such an event the Buyer named herein is released of all further obligations." This clause is an excellent clause that can be added as an addendum.
2) Find your purchaser. It is always good to have your purchaser in advance so you can quickly get the property you are assigning to them.
3) Sign and have signed the Assignment of Contract. This contract can be found at most Title companies or closing agents.
4) The new buyer finished the purchase using your contract to purchase.
5) You usually get paid out of closing, often with a separate agreement, from the end buyer for the rights they had to use the contract you set up for purchase of the property.

A common assignment fee is about 2-3% of the deal. Also, most banks selling properties do not like assignments. The bank wants to know who the end buyer is. This does not mean an assignment can happen with a bank – it’s just banks do not prefer it.

Did you ever find the right contract and if so does dean list it under forms and documents?

there are all sorts of forms under that topic on the site. You have to pick what you are looking for an customize it for your needs. What is there is just a basic format. Find out what applies to your state and edit it to conform.

that purchased the ASSIGNMENT sign the AGREEMENT of SALE? do you see what i'm saying? if i already signed the contract as sully/and or assigns, where does the NEW BUYER sign his name? YOUR,HERO,SULLY.

well were you guys able to get a lawyer to draft a generic RE-ASSIGN to post? i would still love to see it, for my knowledge, if you know what i mean? SULLY

Hey Sully...the person you assigned to does NOT sign the origanl agreement of sale. He/she would sign an assignment contract with you. He/she would then be bound to the terms in the aggreement of sale that you locked up.

D

they sign the ASSIGNMENT CLAUSE that you originally put in with the agreement to purchase? you see why i am confused? SULLY.

correct me if i am wrong, but i would sign my name sully/and or assigns on the agreement to purchase the same contract that the original seller signed, then i would use a ASSIGNMENT ADDENDUM, and me and the NEW buyer would sign right?

right...but it wouldnt be an addendum , it would be its own contract between you and the person you are assigning to

D

redicoulus but, you know the ASSIGNMENT OF CONTRACT form thats in the FORMS & DOCS sectionn on the site? is that the contract you are talking about? if so, then what the @$#$%@ is the ASSIGNMENT ADDENDUM used for? SULLY.

that is the one I am talking about. The ASSIGNMENT ADDENDUM would be used to leagally be able to assign the prop. Some attorneys may require it, instead of just having and/or assigns after your name.

D

So I just told my realtor I wanted to put in a low ball offer on a house. I told her to write up the contract with may name and/or assigns.

This is what she said about and/or assings:

"you can't have "and/or assigns" in the buyer area of the contract. If you want to assign the contract you will have to get the Sellers approval and they will want to know specifially who the buyer is and that they are qualified to complete the transaction. This is done after you have a ratified contract...This way the Seller knows that even if you don't find someone to assign the contract to...There will still be a sale. Otherwise, they won't want to take the home off the market"

WTF....why is it that NOBODY ever says the same thing about assignments. Has anyone here actually done one?

Thanks,
D

D:

Your realtor just told you WRONG. I do it on every contract or offer I put in, and to date I have have NO problems with the banks or my realtor. She cannot tell you what you can or cant put down.

Most realtors are a fountain of mis-information. The one you cited is NOT the exception that proves the rules. Here are some other gems from my past.

1) The contract you want to use is illegal. The only allowable one is this one (standard realtor form).

2) It is illegal for me to fax you a blank contract.

3) It is illegal for you to fill out your own contract. Only a licensed realtor can fill it out.

Realtors love the word illegal. It is so scarey. Whenever a realtor says something like this, ask one question.

What law does it violate? Expect a blank stare...

What happens if you DO write and/or assigns on the line? Do you get instantly zapped by a death ray? Is it a criminal offense? Is the contract null and void?

Based on WHAT laws??

Bottom line: That realtor was blowing smoke. And more than likely, if you write the contract anyway, s/he is legally obnligated to present it.

Is 100% CORRECT.

I replied to her and she said this:

"I didn't say you couldn't do it...you just don't do it at the time of offer....If you were a Seller would you agree to an unknown entity as a buyer? If you had a potential assign in mind then you could do an and/or ...in which case you would be asked to provide proof of the assigns ability to purchase (i.e. bank statement or pre-approval). The assignment addendum is after the offer is accepted and the entity that the contract is being assigned to is named...also like any addendum the seller has to agree"

thoughts?

D

Do you think it's different depending on where you are, or does a person just have to be more aggressive in dealing with people?

I think that she knows it can be done but she does not want to do the work after he gets approved for the sale of changing things over. If it were me I would be much firmer and then again it is not her business to whom you are assigning the deal, you are the one making the offer. Sometimes I just don't understand these people

Errrrrk.... This is YOUR realtor.. For some reason I thought this was a seller's realtor..

I think fire the realtor.

But if you absolutely want/need to work with this reltor then I would say this...

In this climate, buyer's are very hard to come by. I may or may not decide to buy this property. I may or may not to decide to assign my rights to this property. In any event, I prefer to keep ALL of my options open in this buyer's market.

As a representative of MY interests, I would expect you to understand and respect that and present the offer as I write it.

Or she is worried about her commission?? Does she know how she gets paid??

think about her statement that:

"I didn't say you couldn't do it...you just don't do it at the time of offer"

and

"The assignment addendum is after the offer is accepted and the entity that the contract is being assigned to is named...also like any addendum the seller has to agree"

Thanks,
D

Garbage... What is the seller DOESN'T agree?? Then you have to walk away (inspection contingency I would think)... unless you want to close.

Better just to make it part of the contract. Addendums tend to stand out as "non-standard" ie and exception to the contract... Why would you want to do that??

This realtor works for YOU.. No offers from you means she doesnt get a commission check.

If my realtor wanted me to make an offer that I was NOT comfortable with, I would tell her to pound sand.

(Check out some of my posts about my Vegas realtors.)

and found a lot of info on assignments. Check them out.

please comment on them...thanks.

Click here for doc