In real estate, an assignment contract refers to a legal agreement in which one party (the assignor) transfers their rights and obligations under a real estate contract to another party (the assignee). This contract allows the assignor to sell their interest in a property before the closing or settlement date.
Here's how it typically works:
- Original Purchase Contract: The process begins with the assignor entering into a purchase contract with the property owner (usually a seller). This contract outlines the terms and conditions of the purchase, including the purchase price, closing date, and other relevant details.
- Assignment Contract: Once the assignor has an accepted purchase contract with the property owner, they may choose to assign their rights to another party, known as the assignee. The assignment contract will specify the details of the assignment, such as the assignment fee (the amount the assignor will receive for transferring their rights) and any other relevant terms.
- Assignee's Rights and Obligations: By entering into the assignment contract, the assignee steps into the shoes of the assignor and gains the right to purchase the property based on the terms of the original purchase contract. The assignee is also responsible for fulfilling any obligations the assignor had under the original contract. We will always provide our original purchase contract for any property to you as part of your sales contract.
- Closing the Deal: The assignee will be the one who completes the purchase of the property from the seller. The assignor does not take part in the closing process since they have already transferred their rights to the assignee.
Assignment contracts offer you, the vacant land buyer, a potential investment opportunity that you might not have found on your own, allowing you to secure the property at a lower price than the current market value.
We are always happy to explain in further detail. You can always reach us at info@choiceland.com or better yet give us a call at 724-888-5250 and let's talk about what you're looking for!
