"Assignment of Contract" time limitation -novation???
I have been reading on the forum about "Assignment of Contract" and novation. I am uneasy about the whole novation idea. This is why:
I usually ask the buyer for a month to close. However, when flipping, I get the investor to close in 10 days or the his non-refundable deposit is gone and I move to the next buyer. With simult. closing, this is no problem, my 2nd contract with investor states that he has 10 days from this date to close or else ...
When it comes down to "Assignment of Contract", there is a time limitation clause that has to be present in the contract to make sure that the investor buyer closes within 10 days or lose the deposit. That way you don't have to convince the buyer to give you all the $5k fee right up front. Not too many buyers will do that, they only pay after the closing is done.
So as you can see, there is no need for novation anymore and no need to ask for fee upfront from the investor.
Am I correct?
Also does anyone have a clause to be placed in the "Assignment of Contract" that states that the investor has 10 days to close or else lose the deposit?
Good point. I am too confused about the novation idea. Whay do we need the novation?
BTW, I can do bird-dog for you. I saw your post on bird dog.