Assignment Deal?
Hello All
This senior guy bought a house (1000sq ft blt'55) on one acre lot in 1978, and bought a house (576sq ft blt'65) on 1/2 acre lot in 1989 right next to the one acre lot.
He knows that the houses don't worth much...but since the area has developed so much in the past 25 yrs, he knows the land worth ALOT.
Some developers bought one acre lot very close to his place and paid $160K for it. So...he is demanding he can get $160K for the one acre lot and $65K for the other lot. It seems a little high to me..
He is older guy and doesn't want to sell it by himself...so I though about offering him "Assignment" deal. I understand that is to find a buyer for fees. Can you guys tell me how to structure "Assignment"? (what kind of forms do i need? etc...)
Thank you in advance
Joxtal
To assign the contract,
- agree to a price with the old guy
- sign a Purchase and Sale Agreement, make sure it has an assignment clause
- Market the property to builders in the area, or thru the local REI club
- agree to assign it for a fee
- collect your money and assign to your buyer
You can get a contract from a realtor and have an attorney modify it to suit your needs.
Alternatively, you can just get an option on the property with the old guy, and market it. When you find a buyer, then sell him the option for a fee. The option is just a simple contract that does not bind you to purchase it.
Good luck
Peter
I think there is a bit of shaky ground in how you should word this and how you should communicate with the older guy on what you are doing. Essentially, yes, you are helping him sell his house, but legally you don't want to say that without a RE license. I would think it better to say you are considering buying it yourself, but willing to assign it to some one else you find interested in it.
Saying you are "finding a buyer for fees" sounds too much like you are being a RE agent.
The main thing I believe you need to put in the contract to be able to assign is to list "you and/or assigns" as buyer, but this is something you should go over with your attorney as there are other clauses and wording that should be included in the contract and it varies by location and type of property. You should be able to find a basic real estate contract form on the net using a search engine (Google).
Also there is a form for extra protection you should file at the county recorder should you get assigning rights. I may need someone to correct me on the exact name, for I don't remember it at the moment, but I believe it is called an "Assignment of Deed". What it does is it will put a cloud on the title requiring your signature (as well as owner) for sale to prevent any unscrupulous buyer from going over your head to make the deal after you have given them the details.