The Basics of An Assignment Contract
By Pierre Mouchette | Real Property Experts LLC
“Opportunity is a game-changer.” You have heard that expression before! Here is how you as an investor can apply it to your real estate business. Simply adding to a real estate purchase contract, the following "Buyer: John J. Doe, and assigns." You have created a simple, effective, and creative opportunity for profit.
The assigns would be anyone you want to pass your purchase rights along to. Effectively, you have locked up a property with a purchase contract. You can now go ahead and buy it, flip it, rehab and rent it, or any other legal strategy. But you can also pass it along to someone else for profit, never buying it yourself. You are not just passing your purchase rights along; you are also passing along your obligations in the contract. This means that you are no longer involved in the transaction at all. You do not have to perform and buy the property, nor do you have any right to make claims against the seller if there are problems with the deal moving forward. The person or company to whom you have assigned the agreement is now responsible for taking the deal through to closing.