Selling on assignment refers to having a house in contract to purchase, and you assign the contract to another buyer for a finder's fee or commission. This is one of several ways of making money in real estate, particularly in hot markets.
Be upfront with the seller if you plan to assign the contract. Leaving it to the fine print to inform the seller is a sure way to cause bad feelings. You do not have to disclose any particulars with the seller.
Absolutely, under no circumstances, let the assignee (the person you are assigning the contract to) inspect the property without you present. You want to be involved in any communication that goes on between the seller and the assignee.
Make sure that your contract has strong enough wording to allow you to assign it.
Ensure that you have a solid signed contract with the seller before having any potential assignee inspect the property.
You want to ensure that you are upfront with your seller, have a signed contract, and be present for any inspections or communication between the seller and the assignee.
Imagine this scenario: You found a house you wish to get into contract and assign. You let your assignee know about it before you have the house in contract. The assignee goes to the house to inspect it. The seller and the assignee compare notes and you could get left out of the deal completely.
At Flip University, we have sample templates for contracts and assignment contracts available to you. This topic is covered extensively in our webinar series called "How To Start".
As always, we welcome your comments, questions, and suggestions for future blog topics!
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