Assignment Of Contract Before Closing?
I am interested in a small house for sale.An investment company has it under contract with the owner.They want their assignment fee of $6000 when we sign the contract and the closing will take place when the owner and I agree.It is occupied now with tenants on a month to month agreement.The price is $41,000 - $6000(Assignment fee).He says it has clear title and contract is contingent on it. If title is not clear will I have a problem getting the $6000 back? [ Edited by rajwarrior on Date 03/23/2004 ]
I'd wait for the title work to come back...
Shoudn't take more than 3-5 days after ordering it.
When you look at the assignment of contract agreement... ask the wholesaler to make it contingent upon clear and conveyable title of subject property.
JB
[addsig]
Give them the money out of closing. If you close they get the money. If you do not close they do not get the money. Your seller could get flaky and then what would happen to your 6k if you give it to them up front.
Nobody really expects to get their assignment fee prior to closing.
Brend
I was going to say have the money held in escrow until after closing....
was thinking about this earlier
JB
[addsig]
Thanks, jb and Brend.Your answers make sense to me.