Assignment of Contracts

Whenever I put a house under contract to buy I always use the standard Realtor sales contract. If you ever read the contract you will see that it states you can not assign this contract. This being so, if you cross it out and put your initials on it and get the seller to do the same then the contract will now become assignable.

Along with the above, when putting properties under contract to assign I typically put “123 street name llc” as the buyer along with the words “and or assign.” Doing so would allow you to assign the name of the buyer on the contract to anyone you wish.

How does an assignment contract look? Its simply as this:

123 street name llc agrees to assign all rights of the contract written up between x on x day for a fee of x. Please sign below if you agree.

I know it seems very simple but that is it.

Want to learn more on how to wholesale houses? I invite you to look into my 101 wholesale training video.  As always, if you didn’t learn anything from the video just email us and we will gladly refund you your money.

To your continued success

Nick Tang

*This is not being promoted as legal advice. Please speak with your attorney before doing any of the above.

4 thoughts on “Assignment of Contracts

  1. Is the assignment contract completely different from the Realtor Sales Contract? And are you using the same Realtor Sales Contract you used with the seller, with the end buyer at the time he makes the actual purchase with the seller? Or are these separate contracts? Ex:

    1. Realtor Sales Contract (me and seller). 2. Assignment Contract(me and buyer) 3.Third contract that closes the deal (me seller and buyer)?
    or is it:
    1. Realtor Sales Contract {me and seller). 2. Same Realtor Sales Contract to assign contract {me and buyer). 3. Same Realtor Sales Contract allows the seller to purchase the home from buyer {me, seller, and buyer).

    Would the buyer usually be present when the sale is completed? Is this better avoided, or it doesn’t matter?

    Also, I hear it’s a bit more complicated doing wholesale deals in NYC. Could you elaborate on this?

    Thanks again Nick. Much appreciated.

    If it’s easier, you can contact me at
    Bayo Simmonds
    bayo@ghreshomes.com and 718-360-0956.

    1. Is the assignment contract completely different from the Realtor Sales Contract? Yes the assignment contract is a different contract from the Realtor sales contract. Link to an example assignment contract. And are you using the same Realtor Sales Contract you used with the seller, with the end buyer at the time he makes the actual purchase with the seller? Or are these separate contracts?
      When you do paperwork with the end buyer, all you need to do is get them to sign the assignment contract. Once they sign that, they inherit all rights and liabilities of the contract you wrote up with the seller.

      As for your example below, it is more of a back to back closing. Where you do a sales contract to buy for 100k from the seller and you are now selling it to another buyier for 150k on the same day as your closing. If you were to do something like this, you would need a sales contract with the seller for 100k, and i would again use the same contract i wrote up with the seller for the new buyer for now 150k. Doing the closing this way would not require you to do an assignment contract at all.

      Ex:

      1. Realtor Sales Contract (me and seller). 2. Assignment Contract(me and buyer) 3.Third contract that closes the deal (me seller and buyer)?
      or is it:
      1. Realtor Sales Contract {me and seller). 2. Same Realtor Sales Contract to assign contract {me and buyer). 3. Same Realtor Sales Contract allows the seller to purchase the home from buyer {me, seller, and buyer).

      Would the buyer usually be present when the sale is completed? Is this better avoided, or it doesn’t matter?
      Doesn’t matter

      Also, I hear it’s a bit more complicated doing wholesale deals in NYC. Could you elaborate on this?
      How you wholesale in one place is no different then how you would wholesale anywhere else. Anyone that says it is more complicated just doesn’t know what they are doing to begin with. Haha

      Thanks again Nick. Much appreciated.

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