When you’re working in real estate, it’s important to have a contract in place to ensure that both parties are on the same page. An assignment contract is one type of contract that is commonly used in real estate transactions.
An assignment contract is a legal agreement between the seller of a property (the assignor) and the potential buyer (the assignee). This contract assigns the rights of the assignor over the property to the assignee, allowing the assignee to purchase the property in the assignor’s place. This type of contract is often used in real estate wholesaling, where an investor will assign their rights to purchase a property to another investor for a fee.
To ensure that your assignment contract is legally sound and covers all the necessary details, it’s important to use a sample real estate assignment contract as a template. Here are some key elements that should be included in your contract:
1. Parties involved: Identify the assignor and assignee by name and include their contact information.
2. Property details: Describe the property being assigned, including the address, legal description, and any other pertinent details.
3. Assignment fee: State the amount of money that the assignee will pay the assignor for their rights to purchase the property.
4. Contingencies: Include any contingencies that need to be met before the contract can be completed, such as inspection and financing contingencies.
5. Assignment deadline: Set a deadline for the assignee to complete the assigned contract, and specify what will happen if the assignee fails to meet this deadline.
6. Signatures and dates: Make sure that both parties sign and date the contract to make it legally binding.
By using a sample real estate assignment contract as a template, you can ensure that your contract covers all the necessary details and is legally sound. This can help protect both the assignor and assignee and ensure a successful real estate transaction.