Whats The Best Way To Assign A Contract?
If I find a property to buy and want to assign the contract to a rehabber, what is the form I want to use to assign the contract to another buyer? how is consideration handled, as far as getting the money from the end buyer to me? Do I let a title company handle it or do I take part of it before he sees the property? I would appreciate some feedback here.
Joe
I would suggest you get a little book called 301Legal Forms & Agreements. It has all the forms you will ever need as a REI. It costs about $19.00
Lori
[addsig]
I have a title company handle my transactions. Assignment of contract or simultaneous close.
Get a check after everyone closes. Or if your seller and buyer are in agreeance with everything and just want you out the picture there are contracts to just assign your option to purchase a property to your buyer and he can pay you for that assignment. I've never done it that way...I suggest get paid at closing and let your title company handle the assignment.
JB
JB
[addsig]
I could not find any info on the 301 contracts book. I see it for sale, but nothing that explains what contracts are in it. Does anyone have a contract to assign a purchase to another buyer for some consideration? Also, how is that paid? Meaning, "A" buys a property from "B" for $20,000 with an "and/or assigns" clause. "B" finds a buyer "C" who will take the property for $25,000. What is the best way for "A" to get the cash from "C" without taking title to the property? What form would you use?
Joe...go to abebooks or alibris (use google search)...i got my copy of 301 legal forms for $2.99 + shipping approx. $3.40...on page 28 is an assignment of contract...you may also check the freebee section here on cre...they have an assignment of purchase that may suffice...kind regards...C. Walker
Joe,
The form you are referring to is a assignment of contract. I believe there is on in the freebie section of this site. Sign a Purchase Contract with Happy Seller, give them a dollar or so for consideration. Sign an assignment of contract with Happy Investor. Show up to the escrow company after closing and collect check.
Note on consideration: If its a large amount for some reason, put it in escrow just in case you want to back out of the deal.
Thanks, I found the section and found other forms on a google search. The only question I have is how wnd when is the consideration paid by the Assignee to the Assignor? Is there a token amount paid at the signing of the agreement with the balance paid at closing? If so, how is this handled? Does the Assignee cut a check to the Assignor or does it come from the title company?