Real Estate Assignments

Before you sign a real estate contract, you should talk to a lawyer about making sure that assignment of right is possible on the real estate contract you are using. While most real estate contracts allow assignments, some do not.

What are real estate assignments?

Real estate assignments are transfers of rights and/or duties under the terms of the real estate contracts. A real estate assignment allows buyer or investor to sell the real estate contract to other parties for cash.

How to tell if an assignment is allowed in a real estate contract? Whenever you see "and/or assigns" on a real estate contract, the contract is assignable. If you include the phrase "and/or assigns" after your name on a purchase offer or a real estate contract, you can assign your right to purchase the real estate investment to another party.

Sometimes obligations are assigned using the real estate assignments to a third party but the original purchaser is still liable if the third party fails to perform his/her duty according to the real estate contract. To avoid this liability, the real estate contract must specifically release the original purchaser from all liabilities resulting from the assignments.

The need for real estate assignments

Using "and/or assigns" in a real estate contract is a technique to generate profit from real estate investment without actually investing any money. Laws vary by state, so you should make sure that you know what laws apply to your state before you start real estate investing.