Assigning a wholesale property to a buyer
Assigning A Contract
One way to get out of a contract is what’s called assignment, which
is finding someone else to take over your obligations. Because contract
rights are considered property, they can be transferred to others just
like a piece of property such as a home or car.
Let’s say you have a contract to purchase a number of items each month from a dealer, at a certain price. The contract runs for a year. You then decided the product is no longer working out for you, and you’d rather not buy any more. As long as your contract allows it, and it is
legal to assign the contract , you can just find someone else who wants to buy the same number of items each month and “assign” your rights and obligations under the contract to him.
Most contracts permit an assignment as long as the other party to the contract approves the assignment. And many contracts require the other party to approve of an assignment as long as the assignment is “reasonable,” meaning that the assignment won’t jeopardize the security
of the other party or increase the other party’s risks.”
So in conclusion, what I have shared with you is that once you have a property locked up, all rights of the contract is considered “property” and therefore under your control. Therefore you reserve the right to do what you want with it. Assigning your right to purchase the property
once it is locked up is your right. (lawyers.com)
“When we have the right to buy (purchase & sale agreement from the seller to us), we have the right to sell” Attorney William Bronchick – real estate lawyer and also investor. Make sure you put an option to assign on your contract. Options can be sold or exercised.
When you sign a purchase agreement with a seller simply put and/or assign next to your name. This will enable you to assign the contract to another buyer.
** Visit the Resource page for links to websites that will help you with this process.
Check out a few of my other real estate wholesale articles on this subject:
Earn an extra $1,000 to $4,000 a month finding properties for real estate investors
wholesale a property subject to the existing mortgage
Filed Under: assigning real estate • assignment contract • Assignments • make money in real estate • real estate contracts • real estate investing • realestate wholesaling • wholesale real estate
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Great, I never knew this, thanks.
this post is very usefull thx!
Dear Carol Stinson,
I live in the state of California, My Question is this… Can I assign or place a and/or assigns clause in a real estate purchase contract? If Yes, Great.. If no, Then what course of action do I have that will allow me to pass on my rights to purchase to a investor?
Respectfully,
Jose Jaurequi
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