Assinging A Contract

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I have bought some houses before but I have never just assigned a contract to another investor. I have a house under contract and want to assign it. Do I take my contract to the title company to start working on the sale first or do I sell the contract and that person takes my contract and assignment form with his contract to a title company to close. Do I go with him to the closing to get paid. I do not want that person to know what my price was for the purchase can that be kept secret from the buyer. I have buyers fixing to look at the house, I need help quick so I won't mess up . Thanks for any help you can give me. wink

Comments(3)

  • myfrogger3rd November, 2003

    Correct me if I'm wrong here but i'll try to explain....

    Your contract to purchase a property is a product that you can use for yourself or sell. You can sell the paper for whatever you want, but it won't change the paper. You still have a contract to purchase the property at $XXX.

    To accomplish what you want, you will have to double-close. You will need to arrange financing (sub-to likely) and then immediately sell the property for whatever you like to the new buyer. In my state both transactions must be recorded with a "declaration of value" which indicates the purchase price. Although the buyer may not know what the price you bought it at initially, they likely can find out later.

    If there is a way to do this, I'm also interested...

  • SolutionsKid3rd November, 2003

    You grab an assignment of contract form to which you sign in and sign over your contract to your investor, etc.

    Then you show up at closing and can either do a simultaneous/double closing or if your seller doesn't mind or care about the money being made, then you can just have your buyer step into your shoes and do it all at the time same time.

    Usually your fee is taken out during closing, called an assignment fee or consulting fee.

    Hope that made some sense.

    Christian "The Solutions Kid" Beebe
    [addsig]

  • BESS3rd November, 2003

    I want to make sure I am understanding this right. I have an assignment form. I cannot let the buyer know what I sold this for or she will probably walk out on me. She is the type that wants what she wants but does not want you to be getting much of anything at least where she knows it. Do I have to still bring in the money to close with her and then the buyer bring in a check also. Am I getting around borrowing the money this way. I am a little confused. Thank you

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