Assigning
When you assign a contract to an ivestor and he backs out, does the sellers have the right to cancel the contract because you assigned over your rights? I live in Ca and my attorney said I did not have any rights to keep them in contract.
When you assign a contract, you are assigning your position as buyer to another individual/entity. If that person decides no deal, they have killed the deal, not the seller. You could negotiate a new deal with the seller, if there still willing to talk to you.
If your assignee walks, The seller keeps the earnest money deposit, and you keep the assignment fee you've collected.
If you didn't collect anything for the asignment fee up front, choosing instead to defer your compensation until the property closes, I'd be willing to bet that you modify your technique in the future though. At least to cover your expenses in the deal to date.
Sorry,
Jeff
Most savvy REI's write into their P&S Agreements, that "Bob Buyer and/or his Assigns" is the buyer.
That way, Seller cannot back out if he signs the P&S Agreement.
If he doesn't like that language, he won't sign it, but although I've submitted lots of P&S Ks that way, I"ve NEVER had anybody reject an offer for that reason..
yes very expensive lesson. I lost $90,000. The bird dog for the other investor went behind our back and offered them more. I didnt trust them from the begining and now I know why. Whatch out San Diego investors. These guys are scums. It will never happen again. Thanks for all the help!!!!!!!!
Bianca
Does anyone have the addendum to assign a contract?
In Florida, all real estate contracts are assignable unless noted otherwise. If you don't get your money from the intended assignee up front, stay involved and don't assign until you are ready to close the deal. I have done this several times and found that I was able to collect a larger fee if I agreed to stay involved to the end of the transaction.
Was able to get the investors to assign it back to me. Got a attorney. We followed the contract it was the buyer who kept delaying the sale.