Option To Purchase, Assignment Of Option
Builder offers 3K option to prospective buyer to purchase parcel prior to public report. 9mo later, public report is released and prospective buyer is required to close. Prospective buyer finds investor to assign the option to for 10K. Builder option agreement says no assignees but builder needs to sell and is willing to re-write the contract in the name of the investor. Land contract is re-written, original optionee (prospective buyer) is cut out of the deal. Prior to closing, prospective buyer (thinking he is protecting his position) records the 10K assignment of contract. Will this adversely affect the transaction in any way from going through? How?
Anything on the title will cause issues when it comes time to issue title insurance.
The title insurance company will want to get to the bottom of your interest in the property and will most likely require a release from the original buyer.
Thank you for the replying.