How to Assign a Real Estate Contract
• An assignment of contract is an agreement where a person who originally was a party to a contract (the “Assignor”) assigns his rights and responsibilities under that contract to another person (the “Assignee”). The Assignor may choose to use an assignment for a number of reasons including change of business circumstances, financial concerns or other changes in circumstance. • Flipping houses is the most common use of assignment. Investors buy a property, rehab and renovate and then sell for a tidy profit. This requires a lot of work. There are house finders also known as wholesalers, flippers or bird dogs that find good deals, get the property tied up and under contract, and then find and assign the contract to the actual buyer for a fee. This process is known as assigning a contract, and requires little if any money. • Find a buyer who wants the home. Have them execute an assignment contract with you, effectively taking over your position to perform on the contract based on the term
