Assigning Real Estate Contracts Dorothy Day Essay Thesis
It is worth noting that the assignment of contract method will never have investors take title to the property, nor will the assignment of contract show up in the title chain.
In fact, wholesalers won’t even have to fund the deal.
The assignment fee in an assignment of contract wholesale deal is the profit an investor stands to make by acting as the middleman.
That said, the terms of how the investor will be paid are detailed in the Assignment of Real Estate Purchase and Sale Agreement, and can transpire in more ways than one.
Obviously, not all duties can be delegated--for example, some personal services are usually not delegated because they are so specific in nature.This is why it’s very important to make sure the contract says exactly what you need it to in order to wholesale a property.To be safe, hire an attorney versed in these types of real estate transactions.I want to make it abundantly clear: the verbiage of the contract between the seller and the wholesaler is of the utmost importance.All purchase and sale agreements, by default, can be sold to another party unless specifically stated otherwise.That’s an important distinction to make; they aren’t selling the home, but rather the rights to buy the home.You see, when you sell a contract, you are not selling the property itself—you are actually selling the contract you have with the homeowner to buy the home to another buyer.In other words, today’s wholesalers sign a contract that says they have the rights to purchase the property in return for what is typically referred to as equitable interest in the home.That way, when they go to sell the contract they have with the current homeowner, they are simply selling their rights within the terms of the contract to a subsequent buyer.In order to do that, the other party to the contract must be properly notified.Read on to learn how assignments work, including how to keep an assignment option out of your contract.