Assigning a Real Estate Contract
How a buyer transfers its rights under a purchase contract to someone else.
What does it mean to assign a real estate contract?
Assigning a real estate contract means the buyer under an agreement of sale transfers its rights to purchase to a new buyer, who then closes in the original buyer's place. The assignor often collects an assignment fee for its position. This is the mechanism behind most wholesaling.
When can a contract be assigned?
A contract is assignable unless it says otherwise — and many contracts restrict or prohibit assignment, or require the seller's consent. The agreement's language controls, so an investor who plans to assign needs that right written into the contract from the start.
What to watch
Key issues include whether the seller must consent, whether the original buyer stays liable if the assignee fails to close, and how the deposit and fee are handled. Clear assignment language and disclosure to the seller keep the deal clean.
How Nochumson P.C. helps
Nochumson P.C. structures assignable contracts and assignments for investors. Contact us to assign a contract correctly.
Related articles:
- Is Real Estate Wholesaling Legal in Pennsylvania?
- Option-to-Purchase Agreements
- Agreement of Sale in PA Real Estate: Buyer's & Seller's Guide
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