property assignment real estate

• Coaching Team
• Investor Tools
• Student Success

Real Estate Investing Strategies

• Real Estate Business
• Real Estate Markets
• Real Estate Financing
• REITs & Stock Investing

How To Navigate The Real Estate Assignment Contract

What is assignment of contract?

Assignment of contract vs double close

How to assign a contract

Assignment of contract pros and cons

Even the most left-brained, technical real estate practitioners may find themselves overwhelmed by the legal forms that have become synonymous with the investing industry. The assignment of contract strategy, in particular, has developed a confusing reputation for those unfamiliar with the concept of wholesaling. At the very least, there’s a good chance the “assignment of contract real estate” exit strategy sounds more like a foreign language to new investors than a viable means to an end.

A real estate assignment contract isn’t as complicated as many make it out to be, nor is it something to shy away from because of a lack of understanding. Instead, new investors need to learn how to assign a real estate contract as this particular exit strategy represents one of the best ways to break into the industry.

In this article, we will break down the elements of a real estate assignment contract, or a real estate wholesale contract, and provide strategies for how it can help investors further their careers. [ Thinking about investing in real estate? Register to attend a FREE online real estate class and learn how to get started investing in real estate. ]

What Is A Real Estate Assignment Contract?

A real estate assignment contract is a wholesale strategy used by real estate investors to facilitate the sale of a property between an owner and an end buyer. As its name suggests, contract assignment strategies will witness a subject property owner sign a contract with an investor that gives them the rights to buy the home. That’s an important distinction to make, as the contract only gives the investor the right to buy the home; they don’t actually follow through on a purchase. Once under contract, however, the investor retains the sole right to buy the home. That means they may then sell their rights to buy the house to another buyer. Therefore, when a wholesaler executes a contact assignment, they aren’t selling a house but rather their rights to buy a house. The end buyer will pay the wholesale a small assignment fee and buy the house from the original buyer.

The real estate assignment contract strategy is only as strong as the contracts used in the agreement. The language used in the respective contract is of the utmost importance and should clearly define what the investors and sellers expect out of the deal.

There are a couple of caveats to keep in mind when considering using sales contracts for real estate:

Contract prohibitions: Make sure the contract you have with the property seller does not have prohibitions for future assignments. This can create serious issues down the road. Make sure the contract is drafted by a lawyer that specializes in real estate assignment contract law.

Property-specific prohibitions: HUD homes (property obtained by the Department of Housing and Urban Development), real estate owned or REOs (foreclosed-upon property), and listed properties are not open to assignment contracts. REO properties, for example, have a 90-day period before being allowed to be resold.

What Is An Assignment Fee In Real Estate?

An assignment fee in real estate is the money a wholesaler can expect to receive from an end buyer when they sell them their rights to buy the subject property. In other words, the assignment fee serves as the monetary compensation awarded to the wholesaler for connecting the original seller with the end buyer.

Again, any contract used to disclose a wholesale deal should be completely transparent, and including the assignment fee is no exception. The terms of how an investor will be paid upon assigning a contract should, nonetheless, be spelled out in the contract itself.

The standard assignment fee is $5,000. However, every deal is different. Buyers differ on their needs and criteria for spending their money (e.g., rehabbing vs. buy-and-hold buyers). As with any negotiations , proper information is vital. Take the time to find out how much the property would realistically cost before and after repairs. Then, add your preferred assignment fee on top of it.

Traditionally, investors will receive a deposit when they sign the Assignment of Real Estate Purchase and Sale Agreement . The rest of the assignment fee will be paid out upon the deal closing.

Assignment Contract Vs Double Close

The real estate assignment contract strategy is just one of the two methods investors may use to wholesale a deal. In addition to assigning contracts, investors may also choose to double close. While both strategies are essentially variations of a wholesale deal, several differences must be noted.

A double closing, otherwise known as a back-to-back closing, will have investors actually purchase the home. However, instead of holding onto it, they will immediately sell the asset without rehabbing it. Double closings aren’t as traditional as fast as contract assignment, but they can be in the right situation. Double closings can also take as long as a few weeks. In the end, double closings aren’t all that different from a traditional buy and sell; they transpire over a meeter of weeks instead of months.

Assignment real estate strategies are usually the first option investors will want to consider, as they are slightly easier and less involved. That said, real estate assignment contract methods aren’t necessarily better; they are just different. The wholesale strategy an investor chooses is entirely dependent on their situation. For example, if a buyer cannot line up funding fast enough, they may need to initiate a double closing because they don’t have the capital to pay the acquisition costs and assignment fee. Meanwhile, select institutional lenders incorporate language against lending money in an assignment of contract scenario. Therefore, any subsequent wholesale will need to be an assignment of contract.

Double closings and contract assignments are simply two means of obtaining the same end. Neither is better than the other; they are meant to be used in different scenarios.

Flipping Real Estate Contracts

Those unfamiliar with the real estate contract assignment concept may know it as something else: flipping real estate contracts; if for nothing else, the two are one-in-the-same. Flipping real estate contracts is simply another way to refer to assigning a contract.

Is An Assignment Of Contract Legal?

Yes, an assignment of contract is legal when executed correctly. Wholesalers must follow local laws regulating the language of contracts, as some jurisdictions have more regulations than others. It is also becoming increasingly common to assign contracts to a legal entity or LLC rather than an individual, to prevent objections from the bank. Note that you will need written consent from all parties listed on the contract, and there cannot be any clauses present that violate the law. If you have any questions about the specific language to include in a contract, it’s always a good idea to consult a qualified real estate attorney.

When Will Assignments Not Be Enforced?

In certain cases, an assignment of contract will not be enforced. Most notably, if the contract violates the law or any local regulations it cannot be enforced. This is why it is always encouraged to understand real estate laws and policy as soon as you enter the industry. Further, working with a qualified attorney when crafting contracts can be beneficial.

It may seem obvious, but assignment contracts will not be enforced if the language is used incorrectly. If the language in a contract contradicts itself, or if the contract is not legally binding it cannot be enforced. Essentially if there is any anti-assignment language, this can void the contract. Finally, if the assignment violates what is included under the contract, for example by devaluing the item, the contract will likely not be enforced.

How To Assign A Real Estate Contract

A wholesaling investment strategy that utilizes assignment contracts has many advantages, one of them being a low barrier-to-entry for investors. However, despite its inherent profitability, there are a lot of investors that underestimate the process. While probably the easiest exit strategy in all of real estate investing, there are a number of steps that must be taken to ensure a timely and profitable contract assignment, not the least of which include:

Find the right property

Acquire a real estate contract template

Submit the contract

Assign the contract

Collect the fee

1. Find The Right Property

You need to prune your leads, whether from newspaper ads, online marketing, or direct mail marketing. Remember, you aren’t just looking for any seller: you need a motivated seller who will sell their property at a price that works with your investing strategy.

The difference between a regular seller and a motivated seller is the latter’s sense of urgency. A motivated seller wants their property sold now. Pick a seller who wants to be rid of their property in the quickest time possible. It could be because they’re moving out of state, or they want to buy another house in a different area ASAP. Or, they don’t want to live in that house anymore for personal reasons. The key is to know their motivation for selling and determine if that intent is enough to sell immediately.

With a better idea of who to buy from, wholesalers will have an easier time exercising one of several marketing strategies:

Direct Mail

Real Estate Meetings

Local Marketing

2. Acquire A Real Estate Contract Template

Real estate assignment contract templates are readily available online. Although it’s tempting to go the DIY route, it’s generally advisable to let a lawyer see it first. This way, you will have the comfort of knowing you are doing it right, and that you have counsel in case of any legal problems along the way.

One of the things proper wholesale real estate contracts add is the phrase “and/or assigns” next to your name. This clause will give you the authority to sell the property or assign the property to another buyer.

You do need to disclose this to the seller and explain the clause if needed. Assure them that they will still get the amount you both agreed upon, but it gives you deal flexibility down the road.

3. Submit The Contract

Depending on your state’s laws, you need to submit your real estate assignment contract to a title company, or a closing attorney, for a title search. These are independent parties that look into the history of a property, seeing that there are no liens attached to the title. They then sign off on the validity of the contract.

4. Assign The Contract

Finding your buyer, similar to finding a seller, requires proper segmentation. When searching for buyers, investors should exercise several avenues, including online marketing, listing websites, or networking groups. In the real estate industry, this process is called building a buyer’s list, and it is a crucial step to finding success in assigning contracts.

Once you have found a buyer (hopefully from your ever-growing buyer’s list), ensure your contract includes language that covers earnest money to be paid upfront. This grants you protection against a possible breach of contract. This also assures you that you will profit, whether the transaction closes or not, as earnest money is non-refundable. How much it is depends on you, as long as it is properly justified.

5. Collect The Fee

Your profit from a deal of this kind comes from both your assignment fee, as well as the difference between the agreed-upon value and how much you sell it to the buyer. If you and the seller decide you will buy the property for $75,000 and sell it for $80,000 to the buyer, you profit $5,000. The deal is closed once the buyer pays the full $80,000.

Assignment of Contract Pros

For many investors, the most attractive benefit of an assignment of contract is the ability to profit without ever purchasing a property. This is often what attracts people to start wholesaling, as it allows many to learn the ropes of real estate with relatively low stakes. An assignment fee can either be determined as a percentage of the purchase price or as a set amount determined by the wholesaler. A standard fee is around $5,000 per contract.

The profit potential is not the only positive associated with an assignment of contract. Investors also benefit from not being added to the title chain, which can greatly reduce the costs and timeline associated with a deal. This benefit can even transfer to the seller and end buyer, as they get to avoid paying a real estate agent fee by opting for an assignment of contract. Compared to a double close (another popular wholesaling strategy), investors can avoid two sets of closing costs. All of these pros can positively impact an investor’s bottom line, making this a highly desirable exit strategy.

Assignment of Contract Cons

Although there are numerous perks to an assignment of contract, there are a few downsides to be aware of before searching for your first wholesale deal. Namely, working with buyers and sellers who may not be familiar with wholesaling can be challenging. Investors need to be prepared to familiarize newcomers with the process and be ready to answer any questions. Occasionally, sellers will purposely not accept an assignment of contract situation. Investors should occasionally expect this, as to not get discouraged.

Another obstacle wholesalers may face when working with an assignment of contract is in cases where the end buyer wants to back out. This can happen if the buyer is not comfortable paying the assignment fee, or if they don’t have owner’s rights until the contract is fully assigned. The best way to protect yourself from situations like this is to form a reliable buyer’s list and be upfront with all of the information. It is always recommended to develop a solid contract as well.

Know that not all properties can be wholesaled, for example HUD houses. In these cases, there are often anti-assigned clauses preventing wholesalers from getting involved. Make sure you know how to identify these properties so you don’t waste your time. Keep in mind that while there are cons to this real estate exit strategy, the right preparation can help investors avoid any big challenges.

Assignment of Contract Template

If you decide to pursue a career wholesaling real estate, then you’ll want the tools that will make your life as easy as possible. The good news is that there are plenty of real estate tools and templates at your disposal so that you don’t have to reinvent the wheel! For instance, here is an assignment of contract template that you can use when you strike your first deal.

As with any part of the real estate investing trade, no single aspect will lead to success. However, understanding how a real estate assignment of contract works is vital for this business. When you comprehend the many layers of how contracts are assigned—and how wholesaling works from beginning to end—you’ll be a more informed, educated, and successful investor.

Click the banner below to take a 90-minute online training class and get started learning how to invest in today’s real estate market!

What is an STR in Real Estate?

Wholetailing: a guide for real estate investors, what is chain of title in real estate investing, what is a real estate fund of funds (fof), reits vs real estate: which is the better investment, multi-family vs. single-family property investments: a comprehensive guide.

Assignment Definition

Investing Strategy , Jargon, Legal, Terminology, Title

Table of Contents

• What Is an Assignment?
• What is an Assignment in Real Estate?
• What Does it Mean to Assign a Contract in Real Estate?
• How Does a Contract Assignment Work?
• Pros and Cons of Assigning Contracts

REtipster does not provide legal advice. The information in this article can be impacted by many unique variables. Always consult with a qualified legal professional before taking action.

An assignment or assignment of contract is a way to profit from a real estate transaction without becoming the owner of the property.

The assignment method is a standard tool in a real estate wholesaler’s kit and lowers the barrier to entry for a real estate investor because it does not require the wholesaler to use much (or any) of their own money to profit from a deal.

Contract assignment is a common wholesaling strategy where the seller and the wholesaler (acting as a middleman in this case) sign an agreement giving the wholesaler the sole right to buy a property at a specified price, within a certain period of time.

The wholesaler then finds another buyer and assigns the contract to him or her. The wholesaler isn’t selling the property to the end buyer because the wholesaler never takes title to the property during the process. The wholesaler is simply selling the contract, which gives the end buyer the right to buy the property in accordance with the original purchase agreement.

In doing this, the wholesaler can earn an assignment fee for putting the deal together.

Some states require a real estate wholesaler to be a licensed real estate agent, and the assignment strategy can’t be used for HUD homes and REOs.

The process for assigning a contract follows some common steps. In summary, it looks like this:

• Find the right property.
• Get a purchase agreement signed.
• Find an end buyer.
• Assign the contract.
• Close the transaction and collect your assignment fee.

We describe each step in the process below.

1. Find the Right Property

This is where the heavy lifting happens—investors use many different marketing tactics to find leads and identify properties that work with their investing strategy. Typically, for wholesaling to work, a wholesaler needs a motivated seller who wants to unload the property as soon as possible. That sense of urgency works to the wholesaler’s advantage in negotiating a price that will attract buyers and cover their assignment fee.

RELATED: What is “Driving for Dollars” and How Does It Work?

2. Get a Purchase Agreement Signed

Once a motivated seller has agreed to sell their property at a discounted price, they will sign a purchase agreement with the wholesaler. The purchase agreement needs to contain specific, clear language that allows the wholesaler (for example, you) to assign their rights in the agreement to a third party.

Note that most standard purchase agreements do not include this language by default. If you plan to assign this contract, make sure this language is included. You can consult an attorney to cover the correct verbiage in a way that the seller understands it.

RELATED: Wholesaling Made Simple! A Comprehensive Guide to Assigning Contracts

This can’t be stressed enough: It’s extremely important for a wholesaler to communicate with their seller about their intent to assign the contract. Many sellers are not familiar with the assignment process, so if the role of the buyer is going to change along the way, the seller needs to be aware of this on or before they sign the original purchase agreement.

3. Find an End Buyer

This is the other half of a wholesaler’s job—marketing to find buyers. Once they find an end buyer, the wholesaler can assign the contract to the new party and work with the original seller and the end buyer to schedule a closing date.

4. Assign the Contract

Assigning the contract works through a simple assignment agreement. This agreement allows the end buyer to step into the wholesaler’s shoes as the buyer in the original contract.

In other words, this document “replaces” the wholesaler with the new end buyer.

Most assignment contracts include language for a nonrefundable deposit from the end buyer, which protects the wholesaler if the buyer backs out. While you can download assignment contract templates online, most experts recommend having an attorney review your contracts. The assignment wording has to be precise and comply with applicable local laws to protect you from issues down the road.

5. Close the Transaction and Collect the Assignment Fee

Finally, you will receive your assignment fee (or wholesale fee) when the end buyer closes the deal.

The assignment fee is often the difference between the original purchase price (the price that the seller agreed with the wholesaler) and the end buyer’s purchase price (the price the wholesaler agreed with the end buyer), but it can also be a percentage of it or even a flat amount.

According to UpCounsel, most contract assignments are done for about $5,000, although depending on the property and the market, it could be higher or lower.

IMPORTANT: the end buyer will see precisely how much the assignment fee is. This is because they must sign two documents that show the original price and the assignment fee: the closing statement and the assignment agreement, respectively, to close the transaction.

In many cases, if the assignment fee is a reasonable amount relative to the purchase price, most buyers won’t take any issue with the wholesaler taking their fee—after all, the wholesaler made the deal happen, and it’s compensation for their efforts. However, if the assignment fee is too big (such as the wholesaler taking $20,000 from an original purchase price of $10,000, while the end buyer buys it for $50,000), it may ruffle some feathers and lead to uncomfortable questions.

In these instances where the wholesaler has a substantially higher profit margin, a wholesaler can instead do a double closing . In a double closing, the wholesaler closes two separate deals (one with the seller and another with the buyer) on the same day, but the seller and buyer cannot see the numbers and overall profit margin the wholesaler makes between the two transactions. This makes a double closing a much safer way to conclude a transaction.

Assigning contracts is a way to lower the barrier to entry for many new real estate investors; because they don’t need to put up their own money to buy a property or assume any risk in financing a deal.

The wholesaler isn’t part of the title chain, which streamlines the process and avoids the hassle of closing two times. Compared to the double-close strategy, assignment contracts require less paperwork and are usually less costly (because there is only one closing occurring, rather than two separate transactions).

On the downside, the wholesaler has to sell the property as-is, because they don’t own it at any point and they cannot make repairs or renovations to make the property look more attractive to a potential buyer. Financing may be much more difficult for the end buyer because many mortgage lenders won’t work with assigned contracts. Purchase Agreements also have expiration dates, which means the wholesaler has a limited window of time to find an end buyer and get the deal done.

Being successful with assignment contracts usually comes down to excellent marketing, networking, and communication between all parties involved. It’s all about developing strategies to find the right properties and having a solid network of investors you can assign them to quickly.

It’s also critical to be aware of any applicable laws in the jurisdiction where the wholesaler is working and holding any licenses required for these kinds of real estate transactions.

Related terms

Double closing, wholesaling (real estate wholesaling), transactional funding.

Bonus:  Get a FREE copy of the INVESTOR HACKS ebook when you subscribe!

Free Subscriber Toolbox

Want to learn about the tools I’ve used to make over $40,000 per deal ? Get immediate access to videos, guides, downloads, and more resources for real estate investing domination. Sign up below for free and get access forever.

Join our growing community

subscribers

Welcome to REtipster.com

We noticed you are using an ad blocker.

We get it, too much advertising can be annoying.

Our few advertisers help us continue bringing lots of great content to you for FREE.

Please add REtipster.com to your Ad Blocker white list, to receive full access to website functionality.

Thank you for supporting. We promise you will find ample value from our website. 

Thanks for contacting us! We will get in touch with you shortly.

Assigning Real Estate Contracts: Everything You Need to Know

Assigning real estate contracts refers to a method of earning money from buying and selling real estate. You find a seller who is eager to sell their property at a price that is far below its market value. 3 min read updated on February 01, 2023

Updated July 10, 2020:

Assigning real estate contracts refers to a method of earning money from buying and selling real estate. You find a seller who is eager to sell their property at a price that is far below its market value. Then, you find a buyer willing to pay a higher price for it.

How Contract Assignment Works

The first thing you need to do for contract assignment is to find a motivated seller. This is a person who owns a property, and for some reason, needs to sell in a hurry. This is generally because of a problem they are having, such as needing to move to a new home quickly. You'll need to be able to tell the difference between this sort of seller and someone who isn't in so much of a hurry to sell, and perhaps just wants to know what the property is worth.

You can find motivated sellers by placing ads in the newspaper, marketing on the internet, or sending direct mail. A combination of strategies works best.

The next thing you need to do is to obtain an assignment contract document. You can find templates on the web, but it's a good idea to have an attorney look it over before signing anything. That way, you will know that everything is completely legal. You will also be able to use that attorney if things don't work out as planned.

After the contract is signed, you submit it to a title company or an attorney who handles real estate closings . They will then do a title search. This ensures there are no existing liens against the property. This step is crucial because you do not want to buy a property that has a problem with the title. The title company is objective and independent and therefore makes sure everything is fair and legal.

At this point, you may search for a buyer. This will require more marketing strategies and can be a difficult process, but when you do find a buyer, you can move on to the next step - closing on the property. You'll need to collect a non-refundable deposit known as “earnest money” to make sure the buyer won't back out. If the buyer does change their mind, you get to keep the earnest money. This amount can be determined by you or the buyer.

Next, you get paid! The amount you receive will cover the amount you agreed to pay the property seller, along with an amount you get to keep in return for finding the buyer and making the transaction happen.

While this process takes place, you should make sure the seller understands how the process works , and that you will make a profit from the transaction. Otherwise, either the seller or buyer may decide they don't like the idea of your profiting from the sale and may back out. Reassure the seller that they are still getting the amount agreed upon for the sale.

Most contract assignments are done for $5,000 profit or less, but you can do it for a higher amount if you choose. If problems arise, it's possible to do a double or simultaneous closing, thereby keeping both parts of the sale separate and anonymous. Some title companies may not agree to do this, so if it becomes an issue, you should discuss it in advance.

Drawbacks of Contract Assignment

Contract assignment, or wholesaling, can be a  profitable venture , but there are a few pitfalls to watch out for, such as:

• You cannot make any repairs or renovations to the property because you do not own it at any point.
• You cannot offer any type of financing to the buyer.
• You must get the sale accomplished within a short amount of time before the contract expires.
• The process of closing on the property is detailed and can be complicated.
• You must find a buyer who is willing to pay in cash because it's hard to find a lender who will approve a mortgage for an assigned contract.

You also need to check the laws in your state, because in some states it is not legal to market a property that you don't own.

If you need more information or help with assigning real estate contracts, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

Hire the top business lawyers and save up to 60% on legal fees

Content Approved by UpCounsel

• Property Contracts
• Sample Real Estate Contracts
• Land Sale Contracts
• Commercial Real Estate Contract Provisions
• Deed Contract Agreement
• Assignment Of Contracts
• Define Subject to Contract
• As Is Sales Contract
• Bill of Sale Land Contract
• Extension Addendum to Contract

Real Estate Assignment Contract

Email delivery.

Last updated April 17th, 2023

• Purchase Agreements »

A real estate assignment contract  allows a real estate buyer to transfer their purchasing rights and responsibilities to someone else before the closing date. Typically, the new buyer pays a fee to the original buyer for the assignment. The form specifies the amount and due date of the assignment fee (if applicable), as well as all other details of the transaction, including the new buyer’s  liabilities , payment requirements , and rights under the purchase agreement . 

Download:  PDF ,  Word (.docx) ,  OpenDocument

REAL ESTATE ASSIGNMENT CONTRACT

1. THE PARTIES . This Real Estate Assignment Contract (“Assignment”) is entered into on [MM/DD/YYYY] (“Effective Date”), by and between:

Assignor : [ASSIGNOR’S NAME] (“Assignor”) with a mailing address of [ADDRESS] , and

Assignee : [ASSIGNEE’S NAME] (“Assignee”) with a mailing address of [ADDRESS] .

The Assignor and Assignee are each referred to herein as a “Party” and, collectively, as the “Parties.”

2. ORIGINAL AGREEMENT . The Assignor is the purchasing party to that certain purchase and sale agreement, dated [MM/DD/YYYY] , for the real property located at [PROPERTY ADDRESS] , and as more particularly described therein (“Original Agreement”).

3. ASSIGNMENT . The Assignor hereby transfers, assigns, and sets over to the Assignee all contractual rights, title, interests, and obligations in and to the Original Agreement on the Effective Date, pursuant to the terms of the Original Agreement

4. CONSIDERATION . For the sum of any dollar amount stipulated herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties agree to the following: [DESCRIBE PAYMENT OR OTHER CONSIDERATION] .

5. ASSUMPTION . By executing this Assignment, the Assignee accepts and assumes the transfer and ownership of all liabilities, obligations, and claims that currently exist or may in the future regarding the Assignment. As of the Effective Date, the Assignee agrees to comply with and assume all terms, payments, conditions, covenants, and any other duties and obligations as part of this Assignment and those set forth in the Original Agreement.

6. REPRESENTATIONS . The Parties acknowledge that they have a full understanding of the terms of this Assignment. The Assignor further warrants and represents that they own the rights transferred in this Assignment and has prior consent to execute this Assignment under the terms of the Original Agreement or otherwise through the written consent of the selling party under the Original Agreement; in the latter case, the written and signed consent of said party shall be attached to this Assignment. The Parties agree to provide and complete any obligations under this Assignment and the Original Agreement.

Assignor Signature : ___________________ Date:  [MM/DD/YYYY] Print Name: [ASSIGNOR’S NAME]

Assignee Signature : ___________________ Date:  [MM/DD/YYYY] Print Name:  [ASSIGNEE’S NAME]

Thank you for downloading!

How would you rate your free form, when you're ready, visit our homepage to collect signatures or sign yourself - 100% free.

Assignment of Contract – Assignable Contract Basics for Real Estate Investors

What is assignment of contract? Learn about this wholesaling strategy and why assignment agreements are the preferred solution for flipping real estate contracts.

Beginners to investing in real estate and wholesaling must navigate a complex landscape littered with confusing terms and strategies. One of the first concepts to understand before wholesaling is assignment of contract, also known as assignment of agreement or “flipping real estate contracts.”  

An assignment contract is the most popular exit strategy for wholesalers, and it isn’t as complicated as it may seem. What does assignment of contract mean? How can it be used to get into wholesaling? Here’s what you need to know.

What Is Assignment of Contract?

How assignment of contract works in real estate wholesaling, what is an assignment fee in real estate, assignment of agreement pros & cons, assignable contract faqs.

• Transactly Saves Time. Learn How Now!

Assignment of real estate purchase and sale agreement, or simply assignment of agreement or contract, is a real estate wholesale strategy that facilitates a sale between the property owner and the end buyer.

This strategy is also known as flipping real estate contracts because that’s essentially how it works:

• The wholesaler finds a property that’s already discounted or represents a great deal and enters into a contract with the seller,
• The contract contains an assignment clause that allows the wholesaler to assign the contract to someone else (if they choose to!), then
• The wholesaler can assign the contract to another party and receive an assignment fee when the transaction closes.

Assignment of contract in real estate is a popular strategy for beginners in real estate investment because it requires very little or even no capital. As long as you can find an interested buyer, you do not need to come up with a large sum of money to buy and then resell the property – you are only selling your right to buy it .

An assignment contract passes along your purchase rights as well as your contract obligations. After the contract assignment, you are no longer involved in the transaction with no right to make claims or responsibilities to get the transaction to closing.

Until you assign contract to someone else, however, you are completely on the hook for all contract responsibilities and rights.

This means that you are in control of the deal until you decide to assign the contract, but if you aren’t able to get someone to take over the contract, you are legally obligated to follow through with the sale .

Assignment of Contract vs Double Closing

Double closing and assignment of agreement are the two main real estate wholesaling exit strategies. Unlike the double closing strategy, an assignment contract does not require the wholesaler to purchase the property.

Assignment of contract is usually the preferred option because it can be completed in hours and does not require you to fund the purchase . Double closings take twice as much work and require a great deal of coordination. They are also illegal in some states.

Ready to see how an assignment contract actually works? Even though it has a low barrier to entry for beginner investors, the challenges of completing an assignment of contract shouldn’t be underestimated. Here are the general steps involved in wholesaling.

Step #1. Find a seller/property

The process begins by finding a property that you think is a good deal or a good investment and entering into a purchase agreement with the seller. Of course, not just any property is suitable for this strategy. You need to find a motivated seller willing to accept an assignment agreement and a price that works with your strategy. Direct mail marketing, online marketing, and checking the county delinquent tax list are just a few possible lead generation strategies you can employ.

Step #2: Enter into an assignable contract

The contract with the seller will be almost the same as a standard purchase agreement except it will contain an assignment clause.

An important element in an assignable purchase contract is “ and/or assigns ” next to your name as the buyer . The term “assigns” is used here as a noun to refer to a potential assignee. This is a basic assignment clause authorizing you to transfer your position and rights in the contract to an assignee if you choose.

The contract must also follow local laws regulating contract language. In some jurisdictions, assignment of contract is not allowed. It’s becoming increasingly common for wholesalers to assign agreements to an LLC instead of an individual. In this case, the LLC would be under contract with the seller. This can potentially bypass lender objections and even anti-assignment clauses for distressed properties. Rather than assigning the contract to someone else, the investor can reassign their interest in the LLC through an “assignment of membership interest.”

Note: even the presence of an assignment clause can make some sellers nervous or unwilling to make a deal . The seller may be picky about whom they want to buy the property, or they may be suspicious or concerned about the concept of assigning a contract to an unknown third party who may or may not be able to complete the sale.

The assignment clause should always be disclosed and explained to the seller. If they are nervous, they can be assured that they will still get the agreed-upon amount.

Step #3. Submit the assignment contract for a title search

Once you are under contract, you must typically submit the contract to a title company to perform the title search. This ensures there are no liens attached to the property.

Step #4. Find an end buyer to assign the contract

Next is the most challenging step: finding a buyer who can fulfill the contract’s original terms including the closing date and purchase price.

Successful wholesalers build buyers lists and employ marketing campaigns, social media, and networking to find a good match for an assignable contract.

Once you locate an end buyer, your contract should include earnest money the buyer must pay upfront. This gives you some protection if the buyer breaches the contract and, potentially, causes you to breach your contract with the seller. With a non-refundable deposit, you can be sure your earnest money to the seller will be covered in a worst-case scenario.

You can see an assignment of contract example here between an assignor and assignee.

Step #5. Receive your assignment fee

The final step is receiving your assignment fee. This fee is your profit from the transaction, and it’s usually paid when the transaction closes.

The assignment fee is how the wholesaler makes money through an assignment contract. This fee is paid by the end buyer when they purchase the right to buy the property as compensation for being connected to the original seller. Assignment contracts should clearly spell out the assignment fee and how it will be paid.

An assignment fee in real estate replaces the broker or Realtor fee in a typical transaction as the assignor or investor is bringing together the seller and end buyer.

The standard real estate assignment fee is $5,000 . However, it varies by transaction and calculating the assignment fee may be higher or lower depending on whether the buyer is buying and holding the property or rehabbing and flipping.

The assignment fee is not always a flat amount. The difference between the agreed-upon price with the seller and the end buyer is the profit you stand to earn as the assignor. If you agreed to purchase the property for $150,000 from the seller and assign the contract to a buyer for $200,000, your assignment fee or profit would be $50,000.

In most cases, an investor receives a deposit when the Assignment of Purchase and Sale Agreement is signed with the rest paid at closing.

Be aware that assignment agreements can have a bad reputation . This is usually the case when the end buyer and seller are unsatisfied, realizing they could have sold higher or bought lower and essentially paid thousands to an investor who never even wanted to buy the property.

Opting for the standard, flat assignment fee is much more readily accepted by sellers and buyers as it’s comparable to a real estate agent’s commission or even much lower and the parties can avoid working with an agent.

Real estate investors enjoy many benefits of an assignment of contract:

• This strategy requires little or no capital which makes it a popular entry to wholesaling as investors learn the ropes.
• Investors are not added to the title chain and never own the property which reduces costs and the amount of time the deal takes.
• An assignment of agreement is easier and faster than double closing which requires two separate closings and two sets of fees and disclosures.
• Wholesaling can be a great tool to expand an investor’s network for future opportunities.

As with most things, there are important drawbacks to consider. Before jumping into wholesaling and flipping real estate contracts, consider the downsides .

• It can be difficult to work with sellers and buyers who are not familiar with wholesaling or assignment agreements.
• Some sellers avoid or decline assignment of contract offers because they are suspicious of the arrangement, think it is too risky, or want to know who they are selling to.
• There is a limited time to find an end buyer. Without a reliable buyer’s list, it can be very challenging to find a viable end buyer before the closing date.
• The end buyer may back out at the last minute. This may happen if they do not have owner’s rights until the contract is assigned or they do not want to pay an assignment fee.
• Not all properties are eligible for wholesaling like HUD and REO properties. There may be anti-assignment clauses or other hurdles. It is possible to get around this by purchasing the property with an LLC which can then be sold, but this is a level of complication that many wholesalers want to avoid.
• Assignors do not have owner’s rights. When the property is under contract, investors cannot make repairs or improvements. This makes it harder to assign a contract for a distressed property in poor condition.
• It can be hard to confirm an end buyer is qualified. The end buyer is responsible for paying the agreed upon price set by the seller and assignor. Many lenders do not handle assignment agreements which usually means turning to all-cash end buyers. Depending on the market, they can be hard to find.

In the worst-case scenario, if a wholesaling deal falls through because the end buyer backs out, the investor or assignor is still responsible for buying the property and must follow through with the purchase agreement. If you do not, you are in breach of contract and lose the earnest money you put down.

To avoid this worst-case scenario, be prepared with a good buyer’s list. You should only put properties under contract that you consider a good deal and you can market to other investors or homeowners. You may be able to get more time by asking for an extension to the assignment of contract while you find another buyer or even turn to other wholesalers to see if they have someone who would be a good fit.

What is the difference between assignor vs assignee?

In an assignment clause, the assignor is the buyer who then assigns the contract to an assignee. The assignee is the end buyer or final buyer who becomes the owner when the transaction closes. After the assignment, contract rights and obligations are transferred from the assignor to the assignee.

What Is an assignable contract?

An assignable contract in real estate is a purchase agreement that allows the buyer to assign their rights and obligations to another party before the contract expires. The assignee then becomes obligated to meet the terms of the contract and, at closing, get title to the property.

Is Assignment of Agreement Legal?

Assignment of contract is legal as long as state regulations are followed and it’s an assignable contract. The terms of your agreement with the seller must allow for the contract to be assumed. To be legal and enforceable, the following general requirements must be met.

• The assignment does not violate state law or public policy. In some states and jurisdictions, contract assignments are prohibited.
• There is no assignment clause prohibiting assignment.
• There is written consent between all parties.
• The property does not have restrictions prohibiting assignment. Some properties have deed restrictions or anti-assignment clauses prohibiting assignment of contract within a specific period of time. This includes HUD properties, short sales, and REO properties which usually prohibit a property from being resold for 90 days. There is potentially a way around these non-assignable contracts using an LLC.

Can a non-assignable contract still be assigned?

Even an non-assignable contract can become an assignable contract in some cases. A common approach is creating an agreement with an LLC or trust as the purchaser. The investor can then assign the entity to someone else because the contractual rights and obligations are the entity’s.

Assignment agreements are not as complicated as they may sound, and they offer an excellent entry into real estate investing without significant capital. A transaction coordinator at Transactly can be an invaluable solution, no matter your volume, to keep your wholesaling business on track and facilitate every step of the transaction to closing – and your assignment fee!

Adam Valley

Similar posts, getting to close: contract to close checklist for sellers.

Review our contract to close checklist for sellers to find out what exactly it is the seller is responsible for to make sure the home..

Option Contract in Real Estate Defined

Understanding the option contract real estate definition will better prepare you for your next purchase or selling of a property.

What Does a Contract to Close Coordinator Do?

A contract to close coordinator is simply just someone that is able to help you out in the complicated real estate process without stepping on your...

Get notified with new real estate posts.

Be the first to know about new real estate tech insights. Subscribe to stay up-to-date with Transactly. 

Assignment Of Purchase And Sale Agreement

Jump to section, what is an assignment of purchase and sale agreement.

An assignment of purchase and sale agreement is a real estate transaction contract that defines the parties and terms of a real estate purchase. This agreement allows the original purchaser of a property to transfer or assign their rights in the deal to a third party. This agreement is often used in flipping houses.

Assignment of purchase and sale agreements allows the purchaser to take their rights and obligations under a purchase agreement and reassign them to a third party who will take on those responsibilities. Some contracts may have clauses that prohibit assignment or allow it under specific circumstances usually laid out in the agreement.

Common Sections in Assignment Of Purchase And Sale Agreements

Below is a list of common sections included in Assignment Of Purchase And Sale Agreements. These sections are linked to the below sample agreement for you to explore.

Assignment Of Purchase And Sale Agreement Sample

Reference : Security Exchange Commission - Edgar Database, EX-10.1.1 2 d245573dex1011.htm ASSIGNMENT OF PURCHASE AND SALE AGREEMENT , Viewed October 18, 2021, View Source on SEC .

Who Helps With Assignment Of Purchase And Sale Agreements?

Lawyers with backgrounds working on assignment of purchase and sale agreements work with clients to help. Do you need help with an assignment of purchase and sale agreement?

Post a project  in ContractsCounsel's marketplace to get free bids from lawyers to draft, review, or negotiate assignment of purchase and sale agreements. All lawyers are vetted by our team and peer reviewed by our customers for you to explore before hiring.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

Meet some of our Assignment Of Purchase And Sale Agreement Lawyers

Travis counsels individuals and businesses on a broad range of complex topics. His practice centers on producing efficient, client-driven results. He concentrates his practice on real estate, construction, and general business matters with an emphasis on assisting clients both before and after problems occur by drafting contracts designed to best position clients to avoid disputes and litigating matters to a final resolution if problems emerge. Born and raised in Oklahoma, Travis is a triple graduate of the University of Oklahoma, having obtained his Bachelor of Arts, Master of Business Administration, and Juris Doctor degrees from OU. Prior to practicing law, Travis managed the finances and business operations of a successful construction supply company for several years. This insight into sophisticated business dealings, contractual issues, and strategic planning makes him uniquely qualified to handle a wide range of legal matters. Travis lives in Norman with his wife, Haley, dogs, Walter and Poppy, and cat, Ernest. Outside of the office, Travis enjoys playing golf and reading.

Justin Camper is a small business and trademark attorney, entrepreneur, public speaker, and writer. Justin has been practicing law close to 5 years and has done various areas of law from criminal work as a Prosecutor, to business and civil litigation at private law firms.

I am a corporate attorney with offices in Rock Hill, SC, and Lavonia, GA. My practice is focused on contracts, tax, and asset protection planning. I act as a fractional outside general counsel to over 20 businesses in 6 countries. When not practicing law, I can usually be found training my bird dogs.

Bolaji O. Okunnu is an entertainment lawyer and founder of the Okunnu Law Group, PLLC based in New York, New York. His practice includes work in the area of copyright, trademark, contract, intellectual property and business law. As an entertainment attorney, Bolaji represents a diverse roster of celebrities, record labels, music publishers, artists, bands, entrepreneurs, authors, songwriters, artist managers, record producers and entertainment executives concerning their intellectual property, business affairs and creative assets. He is an expert at solving complex and sophisticated legal and business issues relating to contracts, copyrights and trademarks. With his background in both the law and the music business, he brings a broad perspective to problem-solving and business plan strategies. He also has an extraordinary ability to speak to the hearts of creatives while helping them discover their voice and clarify their creative dreams and assignments.

I love to learn, and I love solving problems. That's why I became a lawyer, and learned to solve legal problems for individuals and businesses and help them fix things when there's a snag. Touch base if you think I could have something to offer for you or your company. Experienced, results-oriented legal professional whose background and education have established him as a valuable resource in areas of corporate law, franchising, litigation, compliance, mortgages and banking, and more. Practice Areas Include: Corporate law, Franchising, Litigation, real estate, corporate law, civil disputes, insurance representation, corporate counseling, dispute resolution, risk management, regulatory counsel, compliance. Experience involves sophisticated as well as routine corporate structuring and transactions, simple and complex litigation, and written and oral advocacy such as depositions, mediated settlement conferences, trials, appeals, written pleadings and discovery, and case strategy and analysis. Experience managing and litigating disputes between parties and negotiating settlements across the spectrum of civil litigation, including probative discovery, successful motions practice, legal research and writing, appellate practice, and legal consultation to individuals and business entities. Further experience includes digesting and monitoring updates to the legal landscape to advise clients or departments and successfully adapt policies and procedures to assure compliance with applicable laws and regulations as well as to manage risk effectively. For those needing a skilled commercial or corporate lawyer, or for individuals whose rights need persuasive advocacy, I am a valuable resource. Representative work also has involved success on the appellate level, as in Baker Construction Company, Inc. v. City of Burlington and Hawthorne, LLC, North Carolina COA09-13.

Madeline P.

I am the CEO and attorney at my law firm that I started in June 2020 (as other businesses were shuttering due to Covid-19). I am currently seeking contract work to supplement my case load as I recently finalized numerous family law cases within a short timeframe.

Licensed to practice law in the states of Missouri and Kansas. Have been licensed to practice law for 44 years. Have been AV rated by Martindale Hubbel for almost 30 years.

Find the best lawyer for your project

Quick, user friendly and one of the better ways I've come across to get ahold of lawyers willing to take new clients.

How It Works

Post Your Project

Get Free Bids to Compare

Hire Your Lawyer

Real Estate lawyers by top cities

• Austin Real Estate Lawyers
• Boston Real Estate Lawyers
• Chicago Real Estate Lawyers
• Dallas Real Estate Lawyers
• Denver Real Estate Lawyers
• Houston Real Estate Lawyers
• Los Angeles Real Estate Lawyers
• New York Real Estate Lawyers
• Phoenix Real Estate Lawyers
• San Diego Real Estate Lawyers
• Tampa Real Estate Lawyers

Assignment Of Purchase And Sale Agreement lawyers by city

• Austin Assignment Of Purchase And Sale Agreement Lawyers
• Boston Assignment Of Purchase And Sale Agreement Lawyers
• Chicago Assignment Of Purchase And Sale Agreement Lawyers
• Dallas Assignment Of Purchase And Sale Agreement Lawyers
• Denver Assignment Of Purchase And Sale Agreement Lawyers
• Houston Assignment Of Purchase And Sale Agreement Lawyers
• Los Angeles Assignment Of Purchase And Sale Agreement Lawyers
• New York Assignment Of Purchase And Sale Agreement Lawyers
• Phoenix Assignment Of Purchase And Sale Agreement Lawyers
• San Diego Assignment Of Purchase And Sale Agreement Lawyers
• Tampa Assignment Of Purchase And Sale Agreement Lawyers

Contracts Counsel was incredibly helpful and easy to use. I submitted a project for a lawyer's help within a day I had received over 6 proposals from qualified lawyers. I submitted a bid that works best for my business and we went forward with the project.

I never knew how difficult it was to obtain representation or a lawyer, and ContractsCounsel was EXACTLY the type of service I was hoping for when I was in a pinch. Working with their service was efficient, effective and made me feel in control. Thank you so much and should I ever need attorney services down the road, I'll certainly be a repeat customer.

I got 5 bids within 24h of posting my project. I choose the person who provided the most detailed and relevant intro letter, highlighting their experience relevant to my project. I am very satisfied with the outcome and quality of the two agreements that were produced, they actually far exceed my expectations.

Want to speak to someone?

Get in touch below and we will schedule a time to connect!

Find lawyers and attorneys by city

How to Use Real Estate Assignment Contracts for Investing

Real estate assignment contracts can lead to easy money

kate_sept2004 / Getty Images

• Real Estate
• Retail Small Business
• Restauranting
• Nonprofit Organizations
• Import/Export Business
• Freelancing & Consulting
• Food & Beverage
• Event Planning
• Construction
• Operations & Success
• Becoming an Owner
• Definition of an 'Assign'

What an Assignment Conveys

Profiting by referring it along, building a buyer list.

• Back-To-Back Closings
• Real Estate Investment Strategy

Jim Kimmons is a real estate broker and author of multiple books on the topic. He has written hundreds of articles about how real estate works and how to use it as an investment and small business.

Visualize a real estate purchase contract with just a few extra words added to your name as the buyer. It would look something like this:

"Buyer: John J. Doe, and/or assigns."

That's it. You've provided for a real estate assignment contract. It seems simple, and it is, and it opens up many opportunities for profits in real estate investing .

Who or What Is an 'Assign'?

Your "assigns" would be anyone to whom you want to pass your purchase rights. Maybe you've effectively locked up a property with a purchase contract. You can now go ahead and buy it, flip it, rehab and rent it, or apply any other strategy that's legal.

Or you can also pass it along to someone else for profit, never actually buying it yourself. This is an assignment contract.

Control is all in your court at the beginning; you don't have to turn the deal over to anyone else if you decide not to, or until such time as it best suits you financially if you decide to go ahead with the assignment. The downside is that if you can't find anyone to take over the contract and that was your intention, you'll be legally obligated to consummate the sale yourself.

You're not just passing your purchase rights along. You're also passing your obligations in the contract. This means that you're no longer involved in the transaction at all after the assignment takes place.

You don't have any right to make claims against the seller if there are problems with the deal moving forward, however. The person or company to whom you've assigned the deal to is now responsible for taking the deal through to closing. 

Of course, this assumes that you've actually assigned the contract to another party. Until that time, you're on the hook. The contract is a legal document, governed by individual state laws, so the seller might have various means of recourse if you don't assign the contract and you don't follow through and close on the property.

You probably won't be receiving your fee or profit until closing, so you might be understandably nervous as you wait for the deal to close.

A Note About State Laws

A few states won't let you transfer liability in this way, so you might want to check with an attorney in your area to make sure you understand the laws in your jurisdiction before you jump in with both feet.

HUD homes and real estate owned properties or foreclosures generally aren't open to assignment in any state.

The simplest way to profit in this situation is to locate one or more buyers in your buyer database, show them the value in the deal, and take a referral or "bird-dog" fee for bringing it to them.

Bird-dogging doesn't involve getting technically involved in the deal at all. It's more or less an arrangement where you locate the property, then say, "Here you go, Investor," and the investor takes it from there, personally entering into a purchase contract with the seller—in exchange for a fee to you, of course.

You'll then assign your rights to the deal, and they'll go forward to closing.

They'll pay you your fee at or after closing. You could profit handsomely, even though all you had at risk was whatever earnest money deposit was required. And that risk is pretty low if you know who your buyers are likely to be before you contract the property, assuming the value is there.

You'll also begin to build and maintain an active investor buyer list for your customer pool. This is critical because you really want to be sure you have a ready buyer or two for a home before you commit that earnest money. You should be covered pretty well if you do a good job of building your list .

The list should include both fix-and-flip and rental property investors who have an interest in buying depending on the condition of the property. 

Rental investors normally want a house ready for occupancy, or at least with only cosmetic or minor repairs necessary.

Back-to-Back Closings for a Flip Sale

You can also take on the purchase personally and immediately selling it to another investor or a retail buyer. You might want to take this approach because your profits would be more significant.

Unfortunately, you can no longer use the funds from one deal to close on another in simultaneous closings since the mortgage crisis in 2007. Lenders just won't allow it. But you can explore resources for short-term funding, such as a relative, your own cash, or a hard money lender.

You only need the money long enough to close the purchase and resell. This might be hours, but it should never be more than a day or two.

A Great Real Estate Investment Strategy

Ideally, you've perfected your techniques and you can locate really great deep discount real estate deals with others. There are many ways to get to a good deal early, and your value to your buyer-customer is that you've got the property in your control. They'll only get it if you pass it along.

You can make this work well for you by honing two tasks: First, have a really good buyer database with information about what each is looking for, and second, learn and put into play various strategies for locating great property deals before they become general knowledge.

Using real estate assignment contracts can be your ticket to real estate investing profits with little of your own money at risk if you get these two things in line and operating for you.

• Real Estate Wholesaling - A Viable Real Estate Investment Strategy
• Investing in Real Estate Without Cash
• Earnest Money Basics
• The Basics of Real Estate Wholesaling
• How to Build a Buyer List for Real Estate Investing
• Guide to Real Estate Contract Amendments and Addendums
• The Elements of a Legally Valid Real Estate Contract
• 5 Mistakes in Real Estate Wholesaling You Should Avoid
• Pros and Cons of Flipping a Property
• What Is a Material Fact?
• Real Estate Consulting as a Business Model
• Things to Tell Your Real Estate Buyer Clients
• Lease Purchase and the Real Estate Agent
• Building Your Real Estate Success Investment Team
• 3 Keys to a Successful House Flip
• Alternative Real Estate Business Models

What Is an Assignment of Contract? [How It Works In Real Estate]

What Is an Assignment of Contract?

One intriguing strategy in real estate investing that often stirs interest among newbie investors is the assignment of contracts. This approach, which allows an investor to pass the contractual rights and obligations of a property purchase contract to another buyer, is seen to provide highly profitable opportunities.  

If you are an investor who wants to try this technique to achieve financial freedom, this blog is for you! Here, we'll delve into the nitty-gritty of contract assignment, explaining its mechanism, benefits, potential pitfalls, and the crucial steps involved. We hope that after reading this blog, you can navigate the real estate market with confidence!

What Is an Assignment of a Contract in Real Estate?

In real estate wholesaling, an investor agrees to buy a personal property, often at a below-market price, then assigns the contract to a different buyer, often another investor, for a higher price. 

The difference between the contracted price and the price paid by the end buyer represents the wholesaler's profit, known as the assignment fee. 

For example, an investor might secure a contract to purchase a personal property for $100,000, then find an end buyer or new party willing to pay $120,000 for the same property. By assigning the contract to the end buyer, the investor earns a $20,000 assignment fee. 

However, it's crucial to note that not all real estate contracts can be freely assigned. Some contracts may include a "no assignment" clause that prevents the transfer of the contract to another party. 

Thus, an investor needs to ensure that assigning contractual rights is allowed before proceeding with this strategy. If an assignment clause is not present in the contract, the investor may need to negotiate with the original party or owner to include in the contract rights it or find an alternate method to transfer the property to a new party.

In essence, an assignment contract is a way for real estate investors to connect sellers and buyers, while generating a profit from the transaction without needing to purchase, own, or manage the property themselves. It's a strategy that requires careful planning, thorough due diligence, and an understanding of real estate laws and market conditions.

Assignment Contract vs. Double Closing

Both assignment contracts and double closings are strategies used in real estate investing, particularly wholesaling, but they function differently.

As previously discussed, an assignment of contract involves the wholesaler (assignor) transferring their contractual rights in a property purchase agreement to another party (assignee), typically another investor. 

The wholesaler never actually purchases the property . Instead, they sell their contract to buy the property. The assignee pays an assignment fee to the wholesaler, then proceeds to close the deal with the original seller. In this arrangement, the end buyer is aware of the wholesaler's profit.

Meanwhile, double closing , also known as a "simultaneous close," involves the wholesaler actually purchasing the property before quickly reselling it to the end buyer. This is perhaps the main difference between the two.

Essentially, there are two separate transactions: one where the wholesaler buys from the original seller and another where the wholesaler sells to the end buyer. 

Both transactions of the contract occurs back-to-back, even on the same day. The wholesaler uses the funds from the end buyer to pay the original seller and keeps the difference as profit. This approach allows the wholesaler's profit to remain hidden from all parties.

Is an Assignment Contract Considered Legal?

Yes, an assignment contract is generally considered legal in real estate transactions. It is a common practice, especially in real estate investing and wholesaling.

However, the legality can depend on several factors, including the terms of the original contract and the laws in a particular area.

Some contracts may disallow assignment through a clause that "prohibits the assignment of the contract without the consent of the other party." In such cases, assignment of the written contract without consent would violate public policy and could potentially lead to legal repercussions. This may also encourage litigation.

Additionally, while an assignment contract is generally legal, some states in the U.S. have specific rules and regulations about how real estate contract assignments and wholesaling, more generally, should be conducted. 

Some require specific disclosures to be given to the other party to the contract or have particular rules about how the transaction can be advertised. Some do not also allow material alteration, In some jurisdictions, regular wholesaling activity might require a real estate license, contract expiration date for commercial contracts, etc.

Pros and Cons of Assignment of Contract in Real Estate

The assignment of contracts in real estate comes with its own set of advantages and disadvantages, which investors need to consider carefully before entering any deal.

To help you decide if this real estate investing strategy is indeed for you, read the following pros and cons.

Pros of Assignment of Contract

• Less Capital Required: Because the wholesaler is simply assigning the contract and not actually purchasing the property, less capital is required compared to traditional real estate transactions.
• Profit Potential: Assigning a contract can be profitable, especially when properties are secured under market value and the seller and buyer guarantees performance. The difference between the contract agreement price from the assignee and the purchase price the end buyer pays can result in significant earnings.
• Faster Transactions: Assignments often lead to faster transactions as the assignor is not taking possession of the property. They don't have to do heavy obligations such as a title search, contact a company to make repairs, etc. Once a suitable assignee is found, the existing contract can be assigned and the transaction completed.

Cons of Assignment of Contract

• Dependent on Buyers: Wholesalers are reliant on finding end buyers and getting a closing date. If an assignee can't be found in time, the wholesaler may be forced to back out of the deal or risk legal consequences.
• Limited Control: The wholesaler doesn't own the property and therefore has limited control over it. They can't make improvements or changes to increase its value since it isn't part of their obligations.
• Transparency of Profit: In an assignment, the assignee can see how much profit the assignor is making, which could potentially lead to negotiations or dissatisfaction in the obligations. But, of course, the assignor warrants that the fee is fair.
• Legal Considerations: You cannot assign rights to all types of contracts, and the federal government law may have specific regulations around how assignments work. Wholesalers must be aware of the legal landscape to ensure they conduct business following the law and that the two parties they will involve know the legal term of transfer.

Steps in Contract Assignment in Real Estate

Contract assignment in real estate can be a profitable strategy when done correctly. Each step in this process requires careful attention to detail and due diligence so as not to break the law. It is ideal to consult with a real estate attorney or other professionals before doing any transfer of property.

Nevertheless, here are the steps typically involved in a contract assignment in real estate.

Step 1. Find the Right Investment Property

The first step in contract assignment is identifying a suitable investment property. You need to find a property that can be purchased under market value and resold at a profit. 

This could be a distressed property, a foreclosed property, or simply a property that a seller needs to unload quickly. Market research and property analysis are critical at this stage.

Step 2. Prepare the Real Estate Contract 

Once a property has been identified, you need to prepare a real estate purchase agreement. This is the contract agreement that you will eventually assign to another buyer. It's crucial that this original contract either expressly allows for assignment or at least does not prohibit it.

If you are using a template from others or it has a trade name, make sure you are not going against the intellectual property law. There are already certain claims in the past about this, so be cautious.

Step 3. Submit the Contract

After preparing the original contract, it needs to be submitted to the seller. The seller may accept the contract as is, reject it outright, or propose changes. If changes are proposed, negotiations will take place until an agreement is reached. 

Step 4. Find an End Buyer Who Will Accept the Contractual Obligations

With an accepted contract in hand, you can now seek an end buyer to whom the contract will be assigned.

This could be another investor or a traditional homebuyer. Marketing the original contract can involve networking, advertising on real estate platforms, or working with a real estate agent.

Step 5. Assign the Contract to an End Buyer

After identifying an end buyer, you will assign or transfer the existing contract agreement to them (this may be an individual or a real estate company).

This involves an assignment agreement, which transfers your contractual rights and obligations under the original purchase contract agreement to one party or the end buyer (real estate company or investor).

The assignment agreement should clearly outline the original terms of the assignment, including the assignment fee that you, as the assignor, will receive.

Step 6. Collect the Fee

After the assignment agreement has been signed and transferred on the closing date, you can collect the assignment fee from one party. This is your profit from the assignment contract transaction.

The closing process then proceeds between the original seller and the end buyer, without any further involvement on your part. The property ownership will be transferred to the end buyer and you would no longer have any responsibilities or duties with them.

Final Thoughts: What are Assignment Contracts? [How Does Assignment of Contract Work in Real Estate]

Whether you're a seasoned real estate wholesaler or just starting, it's clear that understanding assignment contracts and how they function within the real estate sector can open doors to new opportunities and potentially profitable ventures. 

With the right approach, a keen understanding of the property market, negotiation skills, thorough due diligence, and creativity, these contracts can be your main income stream.

If you want to find leads on properties that you can assign to another buyer, reach out to us at Property Leads . We offer highly motivated seller leads in your target area for a very reasonable price. We guarantee a high conversion rate since we generate our leads through SEO.

Fill out our form below to start finding the best contract reassignment deals!

PROPERTY LEADS

30 N Gould St Ste N Sheridan, WY 82801 (207) 309-3949 [email protected]

• Deals Funded
• Deals in Process

Testimonials

An assignment clause (AC) is an important part of many contracts, especially for real estate. In this article we discuss:

• What is an Assignment Clause? (with Example)
• Anti-Assignment Clauses (with Example)
• Non-Assignment Clauses
• Important Considerations
• How Assets America ® Can Help

Frequently Asked Questions

What is an assignment clause.

An AC is part of a contract governing the sale of a property and other transactions. It deals with questions regarding the assignment of the property in the purchase agreement. The thrust of the assignment clause is that the buyer can rent, lease, repair, sell, or assign the property.

To “assign” simply means to hand off the benefits and obligations of a contract from one party to another. In short, it’s the transfer of contractual rights.

In-Depth Definition

Explicitly, an AC expresses the liabilities surrounding the assignment from the assignor to the assignee. The real estate contract assignment clause can take on two different forms, depending on the contract author:

• The AC states that the assignor makes no representations or warranties about the property or the agreement. This makes the assignment “AS IS.”
• The assignee won’t hold the assignor at fault. It protects the assignor from damages, liabilities, costs, claims, or other expenses stemming from the agreement.

The contract’s assignment clause states the “buyer and/or assigns.” In this clause, “assigns” is a noun that means assignees. It refers to anyone you choose to receive your property rights.

The assignment provision establishes the fact that the buyer (who is the assignor) can assign the property to an assignee. Upon assignment, the assignee becomes the new buyer.

The AC conveys to the assignee both the AC’s property rights and the AC’s contract obligations. After an assignment, the assignor is out of the picture.

What is a Lease Assignment?

Assignment Clause Example

This is an example of a real estate contract assignment clause :

“The Buyer reserves the right to assign this contract in whole or in part to any third party without further notice to the Seller; said assignment not to relieve the Buyer from his or her obligation to complete the terms and conditions of this contract should be assigning default.”

Apply For Financing

Assignment provision.

An assignment provision is a separate clause that states the assignee’s acceptance of the contract assignment.

Assignment Provision Example

Here is an example of an assignment provision :

“Investor, as Assignee, hereby accepts the above and foregoing Assignment of Contract dated XXXX, XX, 20XX by and between Assignor and ____________________ (seller) and agrees to assume all of the obligations and perform all of the duties of Assignor under the Contract.”

Anti-Assignment Clauses & Non-Assignment Clauses

An anti-assignment clause prevents either party from assigning a contract without the permission of the other party. It typically does so by prohibiting payment for the assignment. A non-assignment clause is another name for an anti-assignment clause.

Anti-Assignment Clause Example

This is an anti-assignment clause example from the AIA Standard Form of Agreement:

” The Party 1 and Party 2, respectively, bind themselves, their partners, successors, assigns, and legal representatives to the other party to this Agreement and to the partners, successors, assigns, and legal representatives of such other party with respect to all covenants of this Agreement. Neither Party 1 nor Party 2 shall assign this Agreement without the written consent of the other.”

Important Considerations for Assignment Contracts

The presence of an AC triggers several important considerations.

Assignment Fee

In essence, the assignor is a broker that brings together a buyer and seller. As such, the assignor collects a fee for this service. Naturally, the assignor doesn’t incur the normal expenses of a buyer.

Rather, the new buyer assumes those expenses. In reality, the assignment fee replaces the fee the realtor or broker would charge in a normal transaction. Frequently, the assignment fee is less than a regular brokerage fee.

For example, compare a 2% assignment fee compared to a 6% brokerage fee. That’s a savings of $200,000 on a $5 million purchase price. Wholesalers are professionals who earn a living through assignments.

Frequently, the assignor will require that the assignee deposit the fee into escrow. Typically, the fee is not refundable, even if the assignee backs out of the deal after signing the assignment provision. In some cases, the assignee will fork over the fee directly to the assignor.

Assignor Intent

Just because the contract contains an AC does not obligate the buyer to assign the contract. The buyer remains the buyer unless it chooses to exercise the AC, at which point it becomes the assignor. It is up to the buyer to decide whether to go through with the purchase or assign the contract.

Nonetheless, the AC signals the seller of your possible intent to assign the purchase contract to someone else. For one thing, the seller might object if you try to assign the property without an AC.

You can have serious problems at closing if you show up with a surprise assignee. In fact, you could jeopardize the entire deal.

Another thing to consider is whether the buyer’s desire for an AC in the contract will frighten the seller. Perhaps the seller is very picky about the type of buyer to whom it will sell.

Or perhaps the seller has heard horror stories, real or fake, about assignments. Whatever the reason, the real estate contract assignment clause might put a possible deal in jeopardy.

Chain of Title

If you assign a property before the closing, you will not be in the chain of title. Obviously, this differs from the case in which you sell the property five minutes after buying it.

In the latter case, your name will appear in the chain of title twice, once as the buyer and again as the seller. In addition, the latter case would involve two sets of closing costs, whereas there would only one be for the assignment case. This includes back-to-back (or double) closings.

Enforceability

Assignment might not be enforceable in all situations, such as when:

• State law or public policy prohibits it.
• The contract prohibits it.
• The assignment significantly changes the expectations of the seller. Those expectations can include decreasing the value of the property or increasing the risk of default.

Also note that REO (real estate owned) properties, HUD properties, and listed properties usually don’t permit assignment contracts. An REO property is real estate owned by a bank after foreclosure. Typically, these require a 90-day period before a property can be resold.

How Assets America Can Help

The AC is a portion of a purchase agreement. When a purchase involves a commercial property requiring a loan of $10 million or greater, Assets America ® can arrange your financing.

We can finance wholesalers who decide to go through with a purchase. Alternatively, we can finance assignees as well. In either case, we offer expedient, professional financing and many supporting services. Contact us today for a confidential consultation.

What rights can you assign despite a contract clause expressly prohibiting assignment?

Normally, a prohibition against assignment does not curb the right to receive payments due. However, circumstances may cause the opposite outcome. Additionally, prohibition doesn’t prevent the right to money that the contract specifies is due.

What is the purpose of an assignment of rents clause in a deed of trust and who benefits?

The assignment of rents clause is a provision in a mortgage or deed of trust. It gives the lender the right to collect rents from mortgaged properties if the borrower defaults. All incomes and rents from a secured property flow to the lender and offset the outstanding debt. Clearly, this benefits the lender.

What is in assignment clause in a health insurance contract?

Commonly, health insurance policies contain assignment of benefits (AOB) clauses. These clauses allow the insurer to pay benefits directly to health care providers instead of the patient. In some cases, the provider has the patient sign an assignment agreement that accomplishes the same outcome. The provider submits the AOB agreement along with the insurance claim.

What does “assignment clause” mean for liability insurance?

The clause would allow the assignment of proceeds from a liability award payable to a third party. However, the insured must consent to the clause or else it isn’t binding. This restriction applies only before a loss. After a first party loss, the insurer’s consent no longer matters.

Related Articles

• Intercreditor Agreements – Everything You Need to Know
• Alienation Clause – Everything You Need to Know
• Loan Defeasance – Everything You Need to Know
• Cross Default – Complete Guide

Other Resources

• Adjustable Rate Mortgage
• Aircraft Financing Terms & Loan – Complete Guide
• Alienation Clause – Everything You Need to Know
• ARM Components
• ARV – After Repair Value – Everything You Need to Know
• Assignment Clause – Everything You Need to Know
• Average Daily Rate (ADR) Formula – Complete Guide
• Balloon Mortgages
• Blanket Mortgage
• Cap Rate Simplified for Commercial Real Estate (+ Calculator)
• Cash Coverage Ratio | Complete Guide + Calculator
• Cash Out Refinance on Investment Property – Complete Guide
• Closing Costs
• CMBS Loans: Guide to Commercial Mortgage-Backed Securities
• Commercial Adjustable Rate Loan Indexes
• Commercial Real Estate Appraisals – Everything You Need to Know
• Commercial Real Estate Syndication – Ultimate Success Guide
• Contingency Reserve – Everything You Need to Know
• CRE Loans – What Nobody Tells You About Commercial Lending
• Cross Default – Everything You Need to Know
• Debt Service Coverage Ratio
• Debt vs Equity Financing
• DIP Financing
• EBITDA Margin – Ultimate Guide
• Effective Gross Income (+ Calculator)
• Equity Kicker – Everything You Need to Know
• Fixed Rate Loans
• Full Service Gross Lease – Everything You Need to Know
• Gap Funding Commercial Real Estate – Pros & Cons
• Ground Lease – Everything You Need to Know (+ Calculator)
• Guide to Floor Area Ratio, Floor Space Index & Plot Ratio
• Hard Costs vs Soft Costs – Commercial Real Estate Guide
• Hard Money vs Soft Money Loans in Real Estate
• How Much to Borrow
• Hypothecation Agreements – Everything You Need to Know
• Industrial Gross Lease
• Intercreditor Agreements – Everything You Need to Know
• Interest Only Mortgage
• Lines of Business
• Loan Defeasance
• Loan Proceeds – Everything You Need To Know
• Loan to Cost Ratio
• Loss to Lease – Everything You Need to Know
• Market Links
• Master Lease Agreements
• Master Planned Communities
• Mergers & Acquisitions Seller Intake Questionnaire
• Mergers & Acquisitions Buyer Intake Questionnaire
• Mini Perm Loan – Complete Guide
• MIRR Guide | Modified Internal Rate of Return (+ Calculator)
• Modified Gross Lease – Everything You Need to Know
• Mortgage Programs
• Net Effective Rent (+ Calculator)
• Net Income and NOI
• Net Leases (Single, Double, Triple)
• Operating Expense Ratio – Ultimate Guide (+ Calculator)
• Pari Passu – Everything You Need to Know
• Partially Amortized Loan – Complete Guide
• Potential Gross Income – Everything You Need to Know
• Preferred Equity in Real Estate – Complete Investor’s Guide
• Preferred Shares – Everything You Need to Know
• Property Interest – Everything You Need to Know
• Recourse Loans – Complete Guide
• Restrictive Covenants – Everything You Need to Know
• Reverse 1031 Exchange – Everything You Need to Know

Ronny was a pleasure to work with and is extremely knowledgeable. His hard work was never ending until the job was done. They handled a complex lease and guided us through entire process, including the paperwork. Not to mention a below market lease rate and more than all the features we needed in a site. We later used Assets America for a unique equipment financing deal where once again Ronny and team exceeded our expectations and our timeline. Thank you to Assets America for your highly professional service!

Great experience with Assets America. Fast turn around. Had a lender in place in 30 minutes looking to do the deal. Totally amazing. Highly recommend them to anyone looking for financing. Ronny is fantastic. Give them a call if the deal makes sense they can get it funded. Referring all our clients.

Assets America guided us every step of the way in finding and leasing our large industrial building with attached offices. They handled all of the complex lease negotiations and contractual paperwork. Ultimately, we received exactly the space we needed along with a lower than market per square foot pricing, lease length and end of term options we requested. In addition to the real estate lease, Assets America utilized their decades-long financial expertise to negotiate fantastic rates and terms on our large and very unique multimillion dollar equipment purchase/lease. We were thankful for how promptly and consistently they kept us informed and up to date on each step of our journey. They were always available to answer each and every one of our questions. Overall, they provided my team with a fantastic and highly professional service!

Assets America was responsible for arranging financing for two of my multi million dollar commercial projects. At the time of financing, it was extremely difficult to obtain bank financing for commercial real estate. Not only was Assets America successful, they were able to obtain an interest rate lower than going rates. The company is very capable, I would recommend Assets America to any company requiring commercial financing.

Assets America was incredibly helpful and professional in assisting us in purchasing our property. It was great to have such knowledgeable and super-experienced, licensed pros in our corner, pros upon which we could fully rely. They helped and successfully guided us to beat out 9 other competing offers! They were excellent at communicating with us at all times and they were extremely responsive. Having them on our team meant that we could always receive truthful, timely and accurate answers to our questions. We would most definitely utilize their services again and again for all of our real estate needs.

Assets America is a great company to work with. No hassles. Recommend them to everyone. Professional, fast response time and definitely gets the job done.

Ronny at Assets America has been invaluable to us and definitely is tops in his field. Great experience. Would refer them to all our business associates.

We were very pleased with Assets America’s expertise and prompt response to our inquiry. They were very straight forward with us and helped a great deal. We referred them to all our business associates.

I’ve worked with this company for decades. They are reputable, knowledgeable, and ethical with proven results. I highly recommend them to anyone needing commercial financing.

Ronny was incredibly adept and responsive – top-notch professional who arranged impressive term sheets.

Assets America helped us survive a very difficult time and we most definitely give them 5 stars!

Ronny was very friendly and though we were unable to make something happen at the moment he gave me some direction to go.

My business partner and I were looking to purchase a retail shopping center in southern California.  We sought out the services of Ronny, CFO of Assets America.  Ronny found us several commercial properties which met our desired needs.  We chose the property we liked best, and Ronny went to work. He negotiated very aggressively on our behalf. We came to terms with the Seller, entered into a purchase agreement and opened escrow.  Additionally, we needed 80 percent financing on our multimillion-dollar purchase.  Assets America also handled the commercial loan for us.  They were our One-Stop-Shop. They obtained fantastic, low, fixed rate insurance money for us.  So, Assets America handled both the sale and the loan for us and successfully closed our escrow within the time frame stated in the purchase agreement.  Ronny did and performed exactly as he said he would. Ronny and his company are true professionals.  In this day and age, it’s especially rare and wonderful to work with a person who actually does what he says he will do.  We recommend them to anyone needing any type of commercial real estate transaction and we further highly recommend them for any type of commercial financing.  They were diligent and forthright on both accounts and brought our deal to a successful closing.

Questionnaire

Greater Toronto Area Real Estate

Toronto | Mississauga | Hamilton | Durham

Call Us Anytime: 416-274-2068

Prefer Text? 416-568-0427

Looking for Bspoke Realty?

10 Essential Things to Know About Real Estate Assignment Sales (for Sellers)

— We take our content seriously. This article was written by a real person at BREL.

What’s an assignment?

An assignment is when a Seller sells their interest in a property before they take possession – in other words, they sell the contract they have with the Builder to a new purchaser. When a Seller assigns a property, they aren’t actually selling the property (because they don’t own it yet) – they are selling their promise to purchase it, along with the rights and obligations of their Agreement of Purchase and Sale contract.  The Buyer of an assignment is essentially stepping into the shoes of the original purchaser.

The original purchaser is considered to be the Assignor; the new Buyer is the Assignee. The Assignee is the one who will complete the final sale with the Builder.

Do assignments only happen with pre-construction condos?

It’s possible to assign any type of property, pre-construction or resale, provided there aren’t restrictions against assignment in the original contract. An assignment allows a Buyer of a any kind of home to sell their interest in that property before they take possession of it.

Why would someone want to assign a condo?

Often with pre-construction sales, there’s a long time lag between when the original contract is entered into, when the Buyer can move in (the interim occupancy period) and the final closing. It’s not uncommon for a Buyer’s circumstances to change during that time…new job out of the city, new husband or wife, new set of twins, etc. What worked for a Buyer’s lifestyle 4 years ago doesn’t always work come closing time.

Another common reason why people want to assign a contract is financial. Sometimes, the original purchaser doesn’t have the funds or can’t get the financing to complete the sale, and it’s cheaper to assign the contract to a new purchaser, than it is to renege on the sale.

Lastly, assignment sales are also common with speculative investors who buy pre-construction properties with no intention of closing on them. In these cases, the investors are banking on quick price appreciation and are eager to lock in a profit now, vs. waiting for the original closing date.

What can be negotiated in an assignment sale?

Because the Assignee is taking over the original purchaser’s contract, they can’t renegotiate the price or terms of the contract with the Builder – they are simply taking over the contract as it already exists, and as you negotiated it.

In most cases, the Assignee will mirror the deposit that you made to the Builder…so if you made a 20% deposit, you can expect the new purchaser to do the same.

Most Sellers of assignments are looking to make a profit, and part of an assignment sale negotiation is agreeing on price. Your real estate agent can guide you on price, which will determine your profit (or loss).

Builder Approval and Fees

Remember that huge legal document you signed when you made an offer to buy a pre-construction condo? It’s time to take it out and actually read it.

Your Agreement of Purchase & Sale stipulated your rights to assign the contract. While most builders allow assignments, there is usually an assignment fee that must be paid to the Builder (we’ve seen everything from $750 to $7,000).

There may be additional requirements as well, the most common being that the Builder has to approve the assignment.

Marketing Restrictions

Most pre-construction Agreements of Purchase & Sale from Toronto Builders do not allow the marketing of an assignment…so while the Builder may give you the right to assign your contract, they restrict you from posting it to the MLS or advertising it online. This makes selling an assignment extremely difficult…if people don’t know it’s available for sale, how they can possibly buy it?

While it may be very tempting to flout the no-marketing rule, BE VERY CAREFUL. Buyers guilty of marketing an assignment against the rules can be considered to have breached the Agreement, and the Builder can cancel your contract and keep your deposit.

We don’t recommend advertising an assignment for sale if it’s against the rules in your contract.

So how the heck can I find a Buyer?

There are REALTORS who specialize in assignment sales and have a database of potential Buyers and investors looking for assignments. If you want to be connected with an agent who knows the ins and outs of assignment sales, get in touch…we know some of the best assignment agents in Toronto.

What are the tax implications of real estate assignment?

Always get tax advice from a certified accountant, not from the internet (lol).

But in general, any profit made from an assignment is taxable (and any loss can be written off). The new Buyer or Assignee will be responsible for paying land transfer taxes and any HST that might be due.

How much does it cost to assign a pre-construction condo?

In addition to the Builder assignment fees, you will likely have to pay a real estate commission (unless you find the Buyer yourself) and legal fees. Because assignments are more complicated, you can expect to pay higher legal fees than you would for a resale property.

How does the closing of an assignment work?

With assignment sales, there are essentially 2 closings: the closing between the Assignor and the Assignee, and the closing between the Assignee and the Builder. With the first closing (the assignment closing) the original purchaser receives their deposit + any profit (or their deposit less any loss) from the Assignee. On the second closing (between the Builder and the Assignee), the Assignee pays the remaining amount to the Builder (usually with the help of a mortgage), and pays land transfer taxes. Title of the property transfers from the Builder to the Assignee at this point.

I suppose it could be said that there is a third closing too, when the Buyer takes possession of the property but doesn’t yet own it…this is known as the interim occupancy period. The interim occupancy occurs when the unit is ready to be occupied, but not ready to be registered with the city. Interim occupancy periods in Toronto range from a few months to a few years. During the interim occupancy period, the Buyer occupies the unit and pays the Builder an amount roughly equal to what their mortgage payment + condo fees + taxes would be. The timing of the assignment will dictate who completes the interim occupancy.

Assignments vs. Resale: Which is Better?

We often get calls from people who are debating whether they should assign a condo they bought, or wait for the building to register and then sell it as a typical resale condo.

Pros of Assigning vs. Waiting

• Get your deposit back and lock in your profit sooner
• Avoid paying land transfer taxes
• Avoid paying HST
• Maximize your return if prices are declining and you expect them to continue to decline
• Lifestyle – sometimes it just makes sense to move on

Cons of Assigning vs Waiting

• The pool of Buyers for assignment sales is much smaller than the pool of Buyers for resale properties, which could result in the sale taking a long time, getting a lower price than you would if you waited, or both.
• Marketing restrictions are annoying and reduce the chances of finding a Buyer
• Price – What is market value? If the condo building hasn’t registered and there haven’t been any resales yet, it can be difficult to determine how much the property is now worth. Assignment sales tend to sell for less than resale.
• Assignment sales can be complicated, so you want to make sure that you’re working with an agent who is experienced with assignment sales, and a good lawyer.

Still thinking of assignment your condo or house ? Get in touch and we’ll connect you with someone who specializes in assignment sales and can take you through the process.

Search by keyword or select a category below.

• Market Updates
• First Time Buyers
• 65+ Real Estate
• Aging in Place
• Mississauga
• Real Estate Crushes
• For Realtors

Raj Singh says:

What can be things to look for, especially determining market value for an assigned condo? I’m the assignee.

Sydonia Moton says:

Y would u need a lawyer when u buy a assignment property

Gideon Gyohannes says:

Good clear information!

Who pays the assignment fee to the developer? Assignor or Assignee?

Thanks Gideon 416 4591919

Melanie Piche says:

It’s almost always the Seller (though I suppose could be a point of negotiation).

Fiona Rourke says:

If there are 2 names on the agreement and 1 wants to leave and the other wants to remain… does the removing of 1 purchaser constitute an assignment

Brendan Powell says:

An assignment is one way to add or remove people from a contract, but not the only way…and not the simplest. Speak to your lawyer for advice on what makes the most sense for your specific situation. For a straightforward resale purchase you could probably just do an amendment signed by all parties. If it’s a preconstruction purchase with various deposits paid, etc it could be more complicated.

Katerina says:

Depends on the Developer. Some of them remove names via assignments only.

Haroon says:

Is there any difference in transaction process If assigner or seller of a pre constructio condo is a non resident ? Is seller required to get a clearance certificate from cRA to complete the transaction ?

Nathalie says:

Hello , i would like to know the exact steps for reassignment property please.

Amazing info. Thanks team. I may just touch base with you when my property in Stoney Creek is completed in. 2020. I may need to reassign it to someone Thanks

Victoria Bachlowa says:

If an assignor renegs on the deal and refuses to close because they figured out they could get more money and the assignment was already approved by the builder and all conditions fulfilled what can the Assignee do. I have $33,000 dollars in trust in the real estate’s trust fund. They sent me a mutual release which I have not signed. The interim occupancy is Feb. 1 and the closing is schedule for Mar. 1, 2019. I have financing in place, was ready to move in Feb. 1 and I have no where to live.

Definitely talk to your lawyer right away. They’ll want to look at your agreement of purchase and sale and will be able to advise you.

With assignment sales, there are essentially 2 closings: the closing between the Assignor and the Assignee, and the closing between the Assignee and the Builder. With the first closing (the assignment closing) the original purchaser receives their deposit + any profit (or their deposit less any loss) from the Assignee. Can I assume that these closing happen at the same time? I’m not sure how and when I would be paid as the Assignor.

What happens to the deposits or any profits already paid if the developer cancels the project after an assignment?

Hi, Did you get answer to this? I did an assignment sale last year and now the builder is not completing apparently and they are asking for their money back. Can they do that? After legal transactions, the lawyer simply said “the deal didn’t go through”. Apparently builder and the person who assumed the assignment agreed on taking out the deal. What do I have to pay back after it was done a year ago

This is definitely a question for your lawyer – as realtors we are not involved in that part of the transaction. I would expect that just as the builder would have to refund your deposits, you would likely need to do the same…but talk to your lawyer. As to whether the builder can cancel a project, yes they always reserve that right (but the details of how and under what circumstances would be in your original purchase agreement). It’s one of the annoying risks in buying preconstruction!

I completed the sale of my assignment in Dec 2015 however the CRA says I should be reporting the capital income in 2016 when the assignee closed his deal with the developer in July 2016. That makes no sense to me since I got all my money in Dec 2015. Can you supply any clarification on that CRA policy please?

You’d have to talk to the CRA or an accountant – we’re real estate agents,so we can’t give tax advice.

Hassan says:

Hello, You said that there are two closings. The first one between the assignor and the assignee and the second one between the builder and the new buyer (assignee). My question is that in the first closing does the assignee have to pay the assignor the deposit they have paid and any profit in cash or will the bank add this to the assignee’s mortgage?

The person doing the assigning usually gets their money at the first closing.

Kathy says:

What is the typical real estate free to assign your contract with the builder ?

Hi Kathy While we do few assignments (as they are rarely successful, and builders do not make it easy), in past we have charged more or less the same as we do for a typical resale listing. While there are elements to assignments that should be easier than a resale (eg staging), many other aspects of assignments are much MORE time-consuming, and the risk much higher since attempts to find a buyer for assignments are often unsuccessful. It’s also important to note that due to the extra complication, lawyer’s fees to assign are typically higher than resale as well–although more $ for the purchase side vs the sale side.

Mitul Patel says:

If assignee has paid small amount of deposit plus the original 25% deposit that the assignor has paid to the builder and gets the Keys to the unit since interim possession has been completed, when the condo registration is done and assignee is getting mortgage from the Bank or Pays the remaining balance to the Builder using his savings and decides not to pay the Balance of the Profit amount to Assignor, what are the possibilities in this kind of scenario?

You’d need to talk to a lawyer to find out the options.

David says:

How much exactly do brokers get paid at sale of Assignment? i.e. Would the broker’s fee be a % of your assignment selling price or your home’s selling price? I’m really looking for a clear answer.

I am using this website’s calculator associated with selling your home in Ontario. But there is no information on selling assignments. https://wowa.ca/calculators/commission-calculator-ontario

Realtors set their own commission, so there is no set fee- that website is likely the commission that that agent offers. We often see commissions of 4-5% for assignments. The fee is a % of the price of the assignment – for example, you originally bought for $500K; you’re now assigning for $600K – commission would be payable on the $600K.

Candace says:

Question: if i bought a pre construction condo, can i sell it as soon as it closes or do i have to live in it for 1 year after closing in order to avoid capital gains taxes?

Or does the 1 year start as soon as you move in?

I would suggest you talk to your accountant re: HST credit implications and capital gains, but if you sell it for more than you paid for it, capital gains usually apply.

You mention avoid paying HST when you assign your property. What is the HST based on? It’s not a commercial property that you would pay HST. Explain. Thanks.

HST and assignments are complex and this question is best answered specific to your situation by your accountant and real estate lawyer. In some cases HST is applicable on assignment profits – more details can be found on the CRA website here:

https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/gi-120/assignment-a-purchase-sale-agreement-a-new-house-condominium-unit.html

If you are a podcast listener, the true condos podcast is also a great resource.

https://truecondos.com/cra-cracking-down-on-assignments/

heres one for your comment, purchase pre construction from builder beginning of 2021, to be finished end of 2021, (semi detached) here we are end of 2022, both units are now ready. Had one assigned but because builder didnt accept within certain time frame(they also had a 90 day clause wherein we couldnt assign prior to 90 less firm closing date (WHICH MOVED 4 TIMES). Anyrate now we have a new assinor but the builder says we are in default from the first one and wants 50k to do the assignment (the agreement lists the possibility of assigning for 12k) Also this deal would include us loosing our whole deposit and paying the 12k(plus fees) would be in addition too the 130k we are already loosing. The second property we are trying to close but interest rates are riducous, together with closing costs(currently mortgage company is asking that my wife be added to that one, afraid to even ask this builder. Any advice on how to deal with this asshole greedy builder? We are simply asking for assignment as per contract and a small extension for the new buyer(week or two) Appreciate any advice. Thank you

Dealing with builders/developers can be extremely painful, much worse than resale transactions in our experience. Their contracts are written to protect THEM. Unfortunately all I can say is follow the advice of your lawyer.

Leave A Comment Cancel Reply

Your email address will not be published. Required fields are marked *

Like What You're Reading?

• Email This field is for validation purposes and should be left unchanged.

• PRO Courses Guides New Tech Help Pro Expert Videos About wikiHow Pro Upgrade Sign In
• EDIT Edit this Article
• EXPLORE Tech Help Pro About Us Random Article Quizzes Request a New Article Community Dashboard This Or That Game Popular Categories Arts and Entertainment Artwork Books Movies Computers and Electronics Computers Phone Skills Technology Hacks Health Men's Health Mental Health Women's Health Relationships Dating Love Relationship Issues Hobbies and Crafts Crafts Drawing Games Education & Communication Communication Skills Personal Development Studying Personal Care and Style Fashion Hair Care Personal Hygiene Youth Personal Care School Stuff Dating All Categories Arts and Entertainment Finance and Business Home and Garden Relationship Quizzes Cars & Other Vehicles Food and Entertaining Personal Care and Style Sports and Fitness Computers and Electronics Health Pets and Animals Travel Education & Communication Hobbies and Crafts Philosophy and Religion Work World Family Life Holidays and Traditions Relationships Youth
• Browse Articles
• Learn Something New
• Quizzes Hot
• This Or That Game
• Train Your Brain
• Explore More
• Support wikiHow
• About wikiHow
• Log in / Sign up
• Finance and Business
• Legal Matters
• Property Law
• Title in Property

How to Transfer Real Estate Property

Last Updated: May 7, 2024 References

This article was co-authored by Clinton M. Sandvick, JD, PhD . Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. There are 11 references cited in this article, which can be found at the bottom of the page. This article has been viewed 56,843 times.

You can transfer real estate by completing a deed. A deed is a legal document which describes the property being sold and must be signed by the sellers. To begin the transfer of real estate, the seller should find a blank deed form and get the legal description of property. Although you usually don’t need a lawyer to transfer real estate property, you should contact an experienced real estate lawyer if you have questions.

Drafting the Deed

• Warranty Deed. With this deed, the seller guarantees that he or she owns the property being transferred. [1] X Research source If the seller does not actually hold title, then the buyer can sue for compensation. A warranty deed provides the buyer with the most protection. You should use it if you don’t know the seller. [2] X Research source
• Quitclaim Deed. With a quitclaim deed, the seller transfers whatever interest in the property that they own. However, the seller does not promise that it actually owns the title to the property. [3] X Research source Because quitclaim deeds provide less protection, they are usually used to transfer property between family members or between close friends.
• Grant Deed. With a grant deed, the seller promises that the title hasn’t been transferred to someone else. [4] X Research source Grant deeds are not available in all states.

• If you don’t have a copy of the deed in your possession, you should go to the Recorder of Deeds office in your county and get a copy.
• The description of property will be listed under “Legal Description” or “Description.” The property will usually be written as metes and bounds, which usually begins with the following language: “Commencing for reference at the dividing line between the City of.…”

• You can get the tax number from your property tax bill or by visiting the local tax assessor’s office.

• Your county town office. You can stop in and ask if they have a blank deed form available.
• Online. There are many deed forms online. You should look for a copy from a reputable source, such as a bar association of attorneys or from your county government.
• Books. There are books or compact discs of legal forms for sale at many retailers. They often have blank deed forms you can use.

• The form should read something like the following: “This deed, made on June 1, 2015 between Michael J. Smith (‘Grantor’) and Alice K. Jones and Adam Y. Jones (‘Grantees’).”

• Language to create a tenancy in common would read: “Grantor, for a valuable consideration, conveys to Grantees, Alice K. Jones and Adam Y. Jones, as tenants in common, the following described real estate, together with rents, profits, fixtures, and other appurtenant interests, in Dane County, State of Wisconsin (‘Property’):”
• Sample language: “…to Grantees, Alice K. Jones and Adam Y. Jones, as joint owners with rights of survivorship, and not as tenants in common.…” [6] X Research source
• Sample language: “…to Grantees, Alice K. Jones and Adam Y. Jones, husband and wife, as tenants by the entirety, and not as tenants in common….” [8] X Research source

• If you use an attachment, clearly label the piece of paper “Attachment A.”
• Make sure that you describe the property accurately. Have someone else look at the description on the current deed and the description you have typed into the transfer deed. If the description is different, then the deed will probably be invalid.

Executing the Deed

• You can get a referral to a real estate lawyer by calling your local or state bar association and asking for a referral.
• You should be particularly careful when trying to transfer a deed to a couple as joint tenants. The law in this area is fairly complicated, and you could benefit from a lawyer’s advice. [9] X Research source If you don’t want to pay for the lawyer, then the buyers could pay for the lawyer to look over the deed.

• To find out if you need witnesses, you should read your state’s law. It should be published online. You can search by typing “your state” and “real estate transfer witnesses” into your favorite web engine.
• You can also stop by your county manager’s office and ask if they know whether you need your deed witnessed.
• If you get a printed form from the county, then check if there are signature lines for witnesses. If there are, then you should get witnesses.

• You can also find a notary by visiting the American Society of Notaries website and using the Locator function. Type in your address to find the nearest notary. [13] X Trustworthy Source American Society of Notaries Non-profit organization providing education, training, and supplies to notaries in the United States. Go to source
• If the property is owned by more than one person, then all owners must sign the deed. To make things easy, you can all go to the notary public at the same time.

• All people who are signing the deed need personal identification.
• You should expect to pay the notary a small fee for his or her services.

Recording the Deed

• County Recorder’s office
• Land Registry office
• Registrar of Titles
• Register of Deeds

• You will have to pay a fee in order to record the new deed. [15] X Research source You should call ahead and ask the clerk the amount and acceptable methods of payment.

• Each state has its own rules on who pays the transfer tax. In some states, such as Maine, the tax is divided equally between the grantor and the grantee.
• In others, like New York, the grantor pays the tax. [17] X Research source

• If you don’t receive a copy of the deed after eight weeks, you should call the Recorder’s office and ask.

Expert Q&A

You Might Also Like

• ↑ https://www.findlaw.com/realestate/selling-your-home/transferring-property.html
• ↑ https://www.ohiobar.org/forpublic/resources/lawyoucanuse/pages/lawyoucanuse-262.aspx
• ↑ https://www.findlaw.com/realestate/buying-a-home/what-are-property-deeds.html
• ↑ http://www.nolo.com/legal-encyclopedia/joint-property-concurrent-ownership-32229.html
• ↑ https://www.asnnotary.org/?form=locator
• ↑ http://www.sec.state.ma.us/rod/rodfees.htm
• ↑ http://www.ncsl.org/research/fiscal-policy/real-estate-transfer-taxes.aspx
• ↑ https://www.tax.ny.gov/bus/transfer/rptidx.htm
• ↑ https://www.realtor.com/advice/finance/transfer-real-estate-deed/

About This Article

• Send fan mail to authors

Reader Success Stories

Kelly Juarez

Oct 27, 2022

Did this article help you?

Featured Articles

Trending Articles

Watch Articles

• Terms of Use
• Privacy Policy
• Do Not Sell or Share My Info
• Not Selling Info

wikiHow Tech Help Pro:

Level up your tech skills and stay ahead of the curve

What You Need to Know About Assigning Real Estate Contracts

If you haven’t assigned your first real estate contract yet, that’s okay. But if you’re going to be in the investing game for the long-haul, you will want to know how to get the job done right. Although wholesalers are most likely to use an assignment contract, the principles discussed below are true of any contract. Typically, contract assignment comes up when you find a property and secure a price, often well under market value, then turn around and “assign” purchasing rights to another investor or end-buyer. Learn how to assign contracts correctly with the tips below.

Be Clear With Your Real Estate Contract Terms

Specificity is vital for effective legal documents. One of the most common misconceptions about any type of legal writing is that legalese and verbosity come with the territory. This couldn’t be further from the truth. In fact, with assignment contracts, the simpler you keep matters, the better. Our good asset protection students may already be wondering if it is better to use your entity or your personal name in these contracts. Ideally, both parties should be using entities like LLCs to protect their investments. This also happens to make assignment easier. A good model to start with is simply: “[Your Entity Here] assigns XYZ Property to John Q. Public.” But if you have not covered your backside with an entity yet, you can still make the assignment in your own name--but we highly recommend that you get hip to protecting your assets with an LLC structure for lawsuit prevention regardless. If you are the one obtaining financing or do not yet have an entity, you may need to proceed with your own name. But you can still CYA with a simple provision in the contract.

Such a provision should include the fact that you (the buyer/assignor) are a real estate investor assigning interest in the property to a clearly-named third party. Get that clearly-named third party to initial this provision when signing the contract to reduce odds of a misunderstanding, or worse, down the line.

When in Doubt, Get it in Writing

This advice goes for any type of legal agreement. Always get any promises, offers, or commitments in writing. Never, ever just take a potential buyer’s word that they will follow through on matters discussed in negotiations. Here are some of the essential components of an assignment contract:

• A clear reference to the property in question, usually by address.
• A clause specifying that you make no guarantees relating to the property or its condition and that the other party is entering the contract following their own investigation of the property.
• A clear acceptance clause.
• A clause detailing earnest money, namely how much of the total the assignor will be paying you upfront. This is the part that is the “teeth” of your contract, which will ensure you get paid as promised. If you used an LLC or other entity in the assignment of contract, ensure payments are made to the entity’s account rather than your personal account.
• Specifications about your assignment fee, specifically dates and types of payment accepted. Caution: do not word this or any piece of your contract as a “finder’s fee.”
• A provision about your being informed of the assignment. Notify the original seller as well.

If any of the above are confusing to you, get a lawyer’s assistance with drafting an appropriate contract.

Don’t Attempt Assignment Contracts Alone: Get Professional Help

Finally, be aware that contracts are not good DIY projects. If you lack legal training, this article may be helpful in allowing you to identify if you have the relevant pieces of your assignment together, but is no substitute for personalized legal advice. Get help from experts like the legal professionals at Royal Legal Solutions for anything you need to stand up in court. We are happy to assist with basic legal documents and other transactional real estate matters as well as asset protection. Remember, we are a full-service firm for real estate investors--and real estate investors ourselves--so we have been in your shoes and are happy to help you with whatever you may need for your real estate business.

SCOTT ROYAL SMITH

Scott Royal Smith is an asset protection attorney and long-time real estate investor. He's on a mission to help fellow investors free their time, protect their assets, and create lasting wealth.

Learn How To Achieve Total Asset Protection While Growing Your Professional Network

Ready to know more than your attorney? Join our community platform where you'll get immediate FREE access to all our best educational resources for real estate investors. Including 8 Masterclasses, group mentoring replays, and much, much more.

SIGN UP FOR OUR EMAILS

Join thousands of real estate investors in all 50 states as they enjoy exclusive content, special promotions, and behind-the-scenes access to me and my guests. No spam, ever. Just great stuff!

COMMUNITY NETWORKING

Posts by category, do you have asset protection questions we can help.

How to Transfer a Real Estate Deed

Are you selling your house and need to transfer ownership? Are you headed into retirement and want to give your home to your kids? Or is there any other life circumstance where you need to put your property into the hands of another person? If so, you’ll have to transfer your real estate deed.

Luckily , transferring a real estate deed is straightforward and shouldn’t take too much time or energy.

Why transfer real estate deeds?

While there are many reasons to transfer deeds, you’ll generally need to do so if someone’s name is removed or changed on the property title. To ensure a legal change to the property title, you’ll want the services of a real estate attorney.

What the lawyer needs to do

A qualified real estate attorney will prepare and file the real estate transfer deed. Be prepared to provide basic information about both the property in question and the individuals who need to be listed on the title.

The real estate attorney will do an inquiry to establish the legal description of your property. He will also confirm the current owners whose names appear on the deed. Usually this process will fall into one of three categories:

• For a transfer to a trust, a certificate of trust or abstract of trust needs to be supplied.
• For a transfer to a business, a certificate of formation or article of incorporation needs to be provided.
• In case of the death of a co-owner on the current deed, a legal copy of the  death certificate will be needed and an affidavit will be arranged.

What you need to do

Sign the new real estate deed. It will be filed with the appropriate county recorder’s office. Usually the filing and recording process takes from four to eight weeks, and you will receive the new real estate deed in the mail.

Property transfer between relatives

Sometimes an aging parent wants to give legal responsibility for their home to their child. If the property has a mortgage on it, the child who receives the property will need to get a loan before completion of the property transfer.

Next, the parent will complete a “ quitclaim deed ,” or deed of release, to transfer ownership. This is sometimes a recommended process for people who are related, as it’s rather straightforward and doesn’t require a lawyer. (Here’s more on when you need a quitclaim deed .)

A notary must be present when signing the deed. The notary will sign and stamp it, making it legally binding. Depending on your location, you may need the signatures of additional witnesses.

Be sure to photocopy the document, distribute it to all parties and file the quitclaim deed with the local land records office where the property is located.

The bottom line

Whatever the reasons for transferring ownership of a property, a real estate deed transfer is one of the more efficient and less time-consuming steps in the homeownership process.

Angela Colley writes about real estate and all things renting and moving for Realtor.com. Her work has appeared in outlets including TheStreet, MSN, and Yahoo.

Twitter Follow @angelancolley

Ok, so how do I get my dream home?

• Calculator See how much home I can afford
• Get pre-approval by a lender
• View current mortgage rates
• Related Articles

Share this Article

General Principles of Assignments in Real Estate Transactions

Assume a seller, ABC Company, enters into a contract to sell a parcel of land (referred to here as “Blackacre”) to Ms. Green. Ms. Green subsequently assigns her interest in the contract to Mr. Smith. Such assignments of contracts of purchase and sale raise a number of practical issues—e.g. notice to the seller, payment for the assignment, and transfer of the deposit—that affect not only the seller but also the original purchaser and the eventual purchaser. A party wishing to assign its interest in a contract of purchase and sale to a new party should not assume that the matter is as simple as entering into an assignment with the new party and then walking away and forgetting about the contract.

A real estate contract will often contain provisions that limit or prohibit an assignment of a party’s interest in the contract. If the contract is silent as to the rights to the parties to assign their interests in the contract, then the rights of the parties, with few exceptions, can be assigned. Normally, assignments of contracts relating to the purchase and sale of real estate involve the purchaser assigning its interest in the contract; however, it is not unheard of to have the seller assign its interest in the contract.

In our scenario, to be binding on it as the seller, ABC Company must be given notice of the assignment, although it does not have to receive a copy of the assignment or the business terms relating to the assignment. If ABC Company has been given notice that Ms. Green’s interest in the contract has been assigned, it may be concerned that she is ‘flipping’ her interest in the contract for a profit. Consequently, ABC Company may wish to seek advice as to whether the contract is enforceable.

Assuming that Mr. Smith is paying Ms. Green a specified amount of money for the assignment, the question arises as to when this money will be paid. Ms. Green will want the money to be paid when they enter into the assignment but Mr. Smith will want to pay at the time that they complete the purchase and sale of Blackacre. In most cases, the latter time period is the norm but, in any case, money paid for an assignment is subject to the Goods and Services Tax.

Ms. Green will likely have paid a deposit to ABC Company pursuant to the contract and will want the deposit to be repaid to her at the time of the assignment rather than having to wait until the purchase and sale of Blackacre is completed. It would not be unusual for Mr. Smith to reimburse the deposit to Ms. Green at the time that they enter into the assignment.

Mr. Smith should look to obtain assurances by way of representations and warranties from Ms. Green that the contract to purchase Blackacre is in full force and effect and that her interest can be assigned to him. In turn, Ms. Green should look to obtain representations and warranties from Mr. Smith that he will fulfill her obligations to complete the purchase of Blackacre since an assignment will not release Ms. Green of her obligations under the contract unless such release is specifically provided for—and has been agreed to by ABC Company.

Frequently, and contrary to the scenario presented here, a contract for a real estate transaction will often limit the right of the purchaser to assign its interest in the contract. A common limitation is that “. . . the purchaser may only assign its interest in the contract with the consent of the seller, such consent not to be unreasonably withheld.” In most cases, it would not be unreasonable for the seller to insist that the assignee contract directly with the seller to fulfill the obligations of the assignor under the contract so that, if there is a default, the seller has the right to seek remedies against both the assignor and the assignee.

So long as all parties to a contract of purchase and sale are aware of their rights and obligations, the completion of a purchase and sale where a contract has been assigned can and should proceed in a straightforward manner.

Learn More About Commercial Real Estate

Our Commercial Real Estate Group has experience in all aspects of the law and practice related to commercial property acquisitions, management, structuring, development and sales. 

Related Articles

Articles | Dec 23, 2021

Critical March 1, 2022 Deadline for Preserving Non-Domestic Water Rights Nears

Case Studies | Jan 8, 2021

Lease found to be "clear and unambiguous"

Articles | Apr 20, 2020

Real Estate Transactions and COVID: Challenges to Closing

Or call toll-free at 1-877-682-4404

This field is required

Subscribe to our mailing list

• Employment Law Seminar
• Construction Law Seminar
• Women's Event
• Golf Tournament
• Hockey Night
• Client Reception
• Employment Alert

• Login / Register
• (778) 909-1305
• Professional Advice

What Is an Assignment Sale? Understanding the Ins and Outs of This Real Estate Process

An assignment sale occurs when the original buyer of a property (the assignor) transfers their rights and obligations of the property contract to another buyer (the assignee) before the official closing of the sale.

This process allows the assignee to step into the original purchaser's shoes, taking on the commitments of the property purchase, which could be a pre-construction condo, house, or any other form of real estate.

Now, let's delve deeper into understanding how assignment sales work, their intricacies, and what they mean for buyers and sellers in the real estate market.

Demystifying the Elements of an Assignment Sale

Embarking on a real estate journey often introduces many terms and processes that may seem complex at first glance, with 'assignment sales' leading the pack in complexity and confusion.

Whether you're the original buyer looking to navigate away from closing costs or a savvy purchaser hunting for a valuable investment, understanding the nuts and bolts of assignment sales is an invaluable asset in the dynamic landscape of real estate.

How Assignment Sales Work

Assignment sales introduce a unique dynamic in real estate transactions, particularly in bustling markets like Vancouver Island and the Sunshine Coast .

When you buy a pre-construction unit, the property is yours, albeit not immediately ready for occupation. Life changes or financial circumstances sometimes evolve between the original purchase agreement and the final closing, necessitating a shift in plan.

Here's where assignment sales come into play. The original buyer can sell their interest in the property before the final sale, sidestepping typical hurdles like mortgage payments or land transfer taxes that come with a regular sale. This method provides a strategic avenue for purchasers to hand over their contractual obligations to another party without waiting for the property's completion.

The Assignment Clause: A Vital Cog in the Wheel

The assignment clause in the original contract is central to these types of transactions. This clause allows the transfer of the buyer's rights and responsibilities to another person.

It's crucial to understand that not all pre-construction sales agreements have an assignment clause, and most builders or developers might impose restrictions or require consent before any assignment deal can proceed.

Understanding the Financials: Costs and Fees

Engaging in assignment sales tends to involve several costs that both the buyer and seller must anticipate.

These include the assignment fee charged by the developer, legal fees for contract transfer, and possibly higher legal fees due to the complexity compared to a resale property. There could also be tax implications depending on the nature of the transaction and the parties involved.

Navigating Through the Interim Occupancy Period

A common scenario in assignment sales, especially in pre-construction condos, is dealing with the interim occupancy period.

This period arises when the assignee can take possession (though not ownership) of the unit while the property is not officially registered. During this phase, the assignee pays occupancy fees, akin to rent, which don't go towards mortgage payments.

Understanding this period helps both parties make an informed decision and prepare for the financial responsibilities it entails.

The Pros and Cons of Assignment Sales

Navigating assignment sales requires a balanced understanding of its advantages and drawbacks. While these transactions open avenues for lucrative deals and flexible arrangements, they also carry inherent risks and complexities that can impact buyers and sellers.

This exploration will provide clear insights, aiding your decision-making in the vibrant real estate market.

The Bright Side: Benefits of Assignment Sales

• Less Competition, More Opportunities: One advantage that makes assignment sales attractive, particularly in areas prone to bidding wars like Vancouver Island , is less competition. Fewer buyers are willing or informed about engaging in this kind of sales transaction, reducing the frenzy often seen in hot real estate markets. This situation can present a more favourable buying environment for those ready and willing to proceed with an assignment purchase.
• Potential for a Better Deal: For buyers, assignment sales sometimes offer the opportunity to get into a brand-new unit at a potentially lower cost. Since the assignee is stepping into an existing agreement, they might benefit from the original purchase price, which could be lower than current market rates, especially in fast-growing communities.
• Flexibility for the Original Buyer: For the original buyer, an assignment sale offers a way out, potentially recouping the deposit paid and avoiding financial penalties that might come with breaking a purchase agreement. This strategy can be particularly advantageous if the purchaser's circumstances change and needs to free up cash or avoid taking on a mortgage.

The Flip Side: Challenges and Risks of Assignment Sales

• Complexity and Higher Legal Fees: Assignment sales are not your straightforward real estate transaction. They require additional steps, such as securing the developer's consent, and the legal process is more complex than purchasing resale properties. As a result, both parties might incur higher legal fees to facilitate the transaction.
• Financial Overheads and Closing Costs: For the assignee, the initial cost outlay can be substantial for the assignee. They must reimburse the original buyer's deposit, pay the assignment fee, cover land transfer taxes, and prepare for other closing costs. These expenses require careful consideration and financial planning.
• Uncertainties and Marketing Restrictions: In some cases, developers impose marketing restrictions, making it challenging to advertise the assignment sale. Additionally, the assignee, now the new buyer, takes on certain risks like development charges or changes in market conditions, which could affect the property's value upon final closing.

Making the Move: Deciding If an Assignment Sale Is Right for You

Deciding to engage in an assignment sale is a pivotal moment, requiring a blend of financial foresight and market understanding.

As we delve into this decision-making process, we'll consider critical personal and economic factors that ensure you're making a choice that aligns with your real estate ambitions and lifestyle aspirations.

Conduct Due Diligence: Know What You're Getting Into

Involving real estate agents experienced in assignment sales is a prudent step for guidance through the intricacies of these transactions.

Also, consulting with a real estate lawyer ensures you understand the legalities, your rights, and any potential liabilities you might be assuming.

Consider Your Financial Standing and Long-Term Goals

Reflect on your current financial health and future plans.

For original buyers, if life changes dictate a change in your real estate investments, an assignment sale could be a viable exit. For potential assignees, consider whether this buying pathway aligns with your investment strategy and if you're comfortable with the associated risks.

Stay Informed About Market Conditions

Market dynamics greatly influence real estate valuations. A clear picture of current trends, especially in your buying area (like Fort St John or cities in the Okanagan ), helps make an informed decision.

Understanding these trends could offer insights into whether you're setting yourself up for a profitable investment or a potential financial misstep.

Bringing It All Home with LoyalHomes.ca

Navigating the world of assignment sales can be a complex journey, laden with opportunities and pitfalls. Whether you're considering selling your contractual rights or stepping into an existing purchase agreement, the route is layered with legal, financial, and market considerations.

At Loyal Homes, we understand that your real estate journey is more than just a transaction; it's a pivotal chapter in your life story. We're here to guide you through each step, ensuring you're equipped with the local, accurate, and relevant information to make decisions confidently. Our team is committed to providing a service that stands a notch above the rest, focusing on relationships and community at its core.

Ready to take the next step in your real estate adventure in British Columbia? Whether it's finding the perfect neighbourhood, exploring investment opportunities, or seeking your dream home, we're here to assist.

For a personalized experience tailored to your unique needs, consider our Personalized Home Search . If you're on the selling side and need to understand your property's current market standing, request a Free Home Valuation . Or, for any other inquiries or guidance, feel free to contact us . Your journey to a successful real estate experience in British Columbia starts with LoyalHomes.ca, where your peace of mind is our highest priority.

Frequently Asked Questions

Is it good to buy an assignment sale.

Buying an assignment sale can be advantageous, offering lower purchase prices compared to current market rates for similar properties, especially in hot real estate markets. However, this venture also requires thorough due diligence to ensure that the agreement terms, property details, and financial implications align with your investment goals.

Can You Make Money on an Assignment Sale?

Yes, there is a potential to make money on an assignment sale, particularly if the property's value has increased since the original purchase date. This profit occurs due to appreciation over the period, especially in high-demand areas, but it's crucial to factor in any assignment fees, legal costs, and tax implications to understand the net gainfully.

What Are the Risks of Buying an Assignment Sale?

The risks include a lack of guarantees on the final product as specifications might change, potential delays in construction, and complexities in financing, often requiring a more substantial initial deposit. These elements underscore the importance of legal counsel to navigate contract specifics and to prepare for any contingencies or additional costs.

How Do I Sell My Pre-Construction Assignment?

Selling a pre-construction assignment involves marketing to potential buyers, typically requiring the developer's consent and possibly entailing a fee. Engaging with a real estate professional who understands the local market nuances and legalities of assignment sales is essential to ensure a smooth, compliant transaction.

Do I Pay Tax on Assignment Sale?

Tax implications on assignment sales can be multifaceted, potentially involving income tax on profits and GST/HST on the purchase, depending on factors like the property type and the seller's tax status. It's advisable to consult with a tax professional to accurately determine specific obligations and strategize for tax efficiency based on your circumstances.

What Is the Difference Between a Transfer and an Assignment?

A transfer and an assignment differ significantly; a transfer involves changing property ownership after a project's completion, whereas an assignment sells one's interest in a property before it's finished. Understanding this distinction is crucial as it affects the contractual obligations, rights transferred to the new buyer, and the legal and financial processes involved in the transaction.

• Photo: @ irina88w via Canva.com
• Photo: @ AndreyPopov via Canva.com
• Photo: @ putilich via Canva.com

Post a Comment

Related posts.

Unlocking the Potential of a Vendor Take-Back Mortgage: How Seller Financing Works

Vendor Take Back Mortgages (VTB) offers an innovative financing solution that can be a game-changer for buyers and sellers in the real estate market.... Read More

Mortgage Broker or Bank: Navigating Your Best Path in Home Financing

Choosing between a mortgage broker and a bank for your home financing needs is a crucial decision. Whether you're eyeing the vibrant real estate ... Read More

Complexities of a Lien on the House: A Comprehensive Guide

Navigating the complex world of property liens can be daunting. Liens on a house represent a legal claim against a property, often resulting from ... Read More

We're Here to Help

• X (Twitter)

Have a Question or Want a Free Market Report?

• Advanced Search
• Search by Map
• Property Tracker
• Featured Listings
• Vancouver Island Communities
• Lower Mainland Communities
• Sunshine Coast Communities
• Thompson Okanagan Communities
• Kootenay Rockies Communities
• Cariboo Communities
• Northern BC Communities
• Mortgage Calculator
• Mortgage Pre-Approval
• First Time Buyers
• Making an Offer
• What Are Closing Costs?
• Financial Terms Glossary
• Personalized Home Search
• Factors to Consider When Moving to a New City
• Selling a Home
• Pricing Your Home
• Marketing Your Home
• Showing Your Home
• Adding Value
• Free Market Analysis
• Join Our Group

The Real Advisors Member Vault.

Our Friendly Team is Available:

M-F 9 AM - 5 PM EST

Need answers right away?

Prefer to speak to someone?

1 (813) 279-2723

9 AM - 5 PM EST

Monday -Friday

Not a fan of the phone?

Not a fan of email?

Lesson 5 – Contract Assignment 101: What it Takes to Wholesale a Property

Considering real estate investing but not sure, exactly, where to start? Dig into WHOLESALING. Done right, wholesaling is the simplest and fastest way to generate four- and five-figure paydays without laying down a dime. As a wholesaler, your role is simple:

• Find the deal
• Run the numbers and assess the deal
• Get the deal under contract
• Assign that contract to a cash buyer—usually a rehabber or fellow investor

Because you never personally close on the property, you won’t have to worry about a down payment or about securing funding for the deal. All you’ll have to do is lock it down for a good price—a price that still leaves a healthy profit margin for the “real” buyer.

Understanding Contract Assignments

That last piece—assigning the contract to a rehabber, real estate investor or retail buyer—is often misunderstood and, often, what keeps high-potential wholesalers out of the game. The good news, though? Once you understand the assignment process, it’s very simple and straightforward. As you build your business and your cash buyer lead list, the assignment process gets even easier. After a while, you’ll know exactly who you can assign this deal or that deal to and, with a quick email or two, can assign virtually any property you get under contract.

Sounds pretty good, doesn’t it?

But, first, back to the real question: what IS a contract assignment? It’s actually exactly what it sounds like. You get a property under contract and you ASSIGN that contract to the rehabber or other end buyer. For your powerhouse negotiation skills and ability to lock down a great deal, you get an assignment feed—think of it as a finder’s fee. That fee is baked into the price you present the buyer.

So let’s back up and use a real-world example—this is a recent wholesale deal we got into contract:

• ARV (After Repair Value): $225,000
• Estimated Repairs: $28,950
• Contract Price: $110,800

We got this particular property under contract for $110,800, estimating the ARV at $225,000 based on the comps and $28,950 in repairs. We then flipped the contract to a rehabber for $120,050, including our $8,550 assignment fee. For us, it was a great deal—we made $8,550 with just about two hours worth of work. And the rehabber was more than happy to pay. Even paying a five-figure assignment fee left him with a 30% profit margin—less his 5% to 10% closing costs, he’s still looking at a solid profit once the work is done.

What Assigning MEANS—and What it Doesn’t

The good thing about assignments is that they don’t require much. Once you have a cash buyer on the hook, you simply assign the contract to them as is. In other words, they’re assuming everything you and the seller agreed to—the price, the terms, the contingencies, the close dates and anything else layered into your contract. They’re also accepting your assignment fee, which you dictate.

For some wholesalers, that’s the challenge. They might have good cash buyers standing by, but the terms they’ve negotiated with the seller don’t sync with the buyer’s expectations. Maybe the repairs are more extensive than the wholesalers budgeted for or the deal they negotiated doesn’t leave enough wiggle room for the end buyer. Whatever the situation is, it ultimately leaves the wholesaler holding the contract—and that can be a real challenge.

However, if you’re smart, strategic and think like a rehabber or cash buyer, you WILL find someone to assign your contract to. In virtually every market, there are real estate investors hunting for great deals. If you have one—or, better yet, lots —you’ll be in high demand.

The Simple Steps to Assigning a Contract

With all of that info under your belt, the next step is to wholesale a property— and that means assigning a contract. Here’s what the process looks like: STEP 1: FIND A SELLER

As always, focus on MOTIVATED sellers. These sellers have a property and want—or, often, NEED—to sell. This puts you in a good position to lock down a great deal with very few contingencies. If you can show a motivated seller the value you bring to the table—you’ll buy as-is, you’ll paying closing costs, you’ll move FAST—then, often, they’re more than willing to play ball.

Motivated sellers are out there—you just need to find them. Work with your real estate agent, scour Craigslist, post bandit signs and NETWORK, all with an eye on finding motivated sellers. When you find them, ACT FAST. If you’ve engaged them, chances are other wholesalers and rehabbers aren’t far behind.

STEP 2: GET IT UNDER CONTRACT

This is the most important part. When you find a good deal—confirmed by your comps and your calculations, of course— get into contract. And do it NOW.

There are plenty of simple contract templates floating around online. Download one and bring it with you for your walk-throughs. Once you’ve agreed on a price, SIGN then start searching for a cash buyer. One final note: be sure your agreement has a clear “and/or assigns” mention in it. This will give you the power to assign that contract to a new buyer before close.

STEP 3: SUBMIT TO THE TITLE COMPANY

Depending on your market, a closing attorney or title company will conduct a title search at this stage. This search will confirm this person CAN sell the property, and that there are no outstanding liens tied to it. You want a CLEAR title before moving forward. If there are issues, consult with your attorney—it may not be worth pushing ahead.

STEP 4: FIND A CASH BUYER

Again, you’ll need to find a cash buyer to jump in and take over the contract. This is the person you’re assigning the contract to and the person whose name you’ll include on the “and/or assigns” line of the agreement.

Like motivated sellers, cash buyers are EVERYWHERE. Your real estate agent, closing attorney, title company and other industry contacts will, no doubt, know plenty of rehabbers and investors looking for deals. You can also strike out on your own and put up bandit signs, check Craigslist and scope out local events like REIA meetings and industry workshops. Here, you’ll find fellow real estate investors looking for a deal—and looking for a great wholesaler like you.

As you meet more and more buyers, be sure to get a sense of what they’re looking for and what they invest in. In the future, you’ll be able to better connect the dots and simply reach out to a targeted buyer when you have a relevant deal on the books.

In this case, once you have a cash buyer, assign the contract. We often tell the seller that we’re working with an “associate” to close the deal and that they, technically, will be buying the property. It’s important to be transparent but also to assure the seller that nothing has changed. They’re still getting the cash you agreed to with the same terms and closing schedule.

STEP 5: CLOSE—AND GET PAID!

At close, you, the seller and the end buyer will sign on the line and close the deal. Typically, the wholesaler gets their assignment fee at close.

In most cases, you’ll simply assign the contract and the end buyer will deal with the nitty-gritty of close, but there are instances where “double closes” are required. In these, you WILL close on the deal and then flip the property to the end buyer. Be careful with these double closes. Some may allow the end buyer to fund the deal. Others, though, require a gap between the closings which could leave you, the wholesaler, on the hook for the full payment amount. Granted, there are “gap loans” that cover these kinds of transactions for a short period of time—usually 24 to 48 hours. But if you don’t have to go down that road, don’t. It’s easier, cleaner and less stressful.

Ultimately, though, that’s it. That’s what it takes to assign a contract and flip a wholesale deal. Sounds pretty simple, right? Exactly.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Search Search Please fill out this field.
• Government & Policy

Assignee: What it is, How it Works, Types

Michelle P. Scott is a New York attorney with extensive experience in tax, corporate, financial, and nonprofit law, and public policy. As General Counsel, private practitioner, and Congressional counsel, she has advised financial institutions, businesses, charities, individuals, and public officials, and written and lectured extensively.

Ariel Courage is an experienced editor, researcher, and former fact-checker. She has performed editing and fact-checking work for several leading finance publications, including The Motley Fool and Passport to Wall Street.

What Is an Assignee?

An assignee is a person, company, or entity who receives the transfer of property, title, or rights from another according to the terms of a contract. The assignee receives the transfer from the assignor. For example, an assignee may receive the title to a piece of real estate from an assignor.

Key Takeaways

• An assignee is a person, company, or entity who receives the transfer of property, title, or rights from a contract.
• The assignee receives the transfer from the assignor.
• An assignee may be the recipient of an assignment, a liability, or appointed to act in the stead of another person or entity.
• The assignee typically will hold the rights of power of attorney only for a specified time or for particular circumstances.
• Once the time has expired or the circumstances have been resolved, the assignee would automatically relinquish those rights.
• Not all assignment contracts are required to be made in writing, but they often are.

How an Assignee Works

An assignee may be the recipient of an assignment, a liability, or appointed to act in the stead of another person or entity. For example, an executor of an estate may be appointed through a will left by a decedent.

Types of Assignees

Assignee in real estate.

An assignee is the recipient of a title when a deed is signed to confer ownership of property in a transaction. A tenant might choose to transfer their property rights to an assignee who would assume duties for paying rent and tending to the property. There may be limits to the rights and liabilities that are granted to an assignee based on the nature of the transfer or assignment of rights.

For example, an assignee might take on the property rights from a tenant who vacated a rental property, but the tenant may still be liable if the assignee does not make rent payments on time. An assignee who takes title and ownership of real estate might not have certain rights to use the property any way they wish. There may be rights of ingress and egress that must be negotiated with adjacent property owners who hold surrounding land parcels. The assignee could receive certain rights that run with the land when they are granted the title.

Assignment by Power of Attorney

Power of attorney may be assigned to a person to tend to certain affairs for a person while they are out of the country or not capable of taking action for themselves. The assignment of power of attorney can grant broad rights or be limited in scope by the terms set by the assignor. The rights could be for the specific handling of a contract or business deal that the assignor cannot be present for.

The assignee typically will hold the rights of power of attorney only for a specified time or particular circumstances. Once the time has expired or the circumstances have been resolved, the assignee would automatically relinquish those rights. It is possible that the terms of power of attorney might allow an assignee to act in their self-interest rather than for the interests of the assignor.

Assignee in an Insurance Policy

In the context of a life insurance policy, interest in a policy can be transferred from the policyholder to a lender or relative by assignment of the policy. In this case, the policyholder is the assignor and the person in whose favor the policy has been assigned is called the assignee.

Assignee in a Contract

When one party to a contract—the assignor—hands off the contract's obligations and benefits to a different party—the assignee—this is known as an assignment of contract. In this situation, the assignee assumes all the rights and responsibilities of the contract from the assignor. All, or a portion, of a letter of credit can be assigned to a third party to pay vendors and suppliers.

Assignee in a Loan

An assignee is a person or a company that buys your loan. For example, an auto dealer that extends credit to individuals may sell their loans to a bank. In this case, the bank is the assignee and the auto dealer is the assignor. If your loan has been sold, you owe money to whoever owns your loan. In the event that responsible parties fail to meet their loan obligations, the assignee has a lien on the vehicle and can repossess it.

Not all assignment contracts are required to be made in writing, but they often are. Assignment contracts may also need to be notarized and witnessed in order to be valid. The assignment of property and collateral for loans must be in writing. Note that not all rights, contracts, or other property are assignable; many contracts, particularly real estate leases and personal service agreements, explicitly prohibit assignment. 

• Terms of Service
• Editorial Policy
• Privacy Policy

• When Florida's Transfer Tax Applies to Real Estate Deals: Handy Scenarios

Buyers and sellers of real property anticipate some tax consequences from a real estate transaction, but typically these concerns are limited to federal income tax implications. The reality is that most states impose various taxes that could affect the cost of the entire transaction, and they are either not considered or understood. One of these taxes is the real property transfer tax. Because transfer tax is imposed by the state (and some counties and cities) on the transfer of title of real property from one person (or entity) to another person (or entity) within the applicable jurisdiction, these types of taxes can result in a material amount of liability. Real estate transactions can be complex enough without tax considerations and consequences, and transfer taxes are different in every jurisdiction in the country.

This Insight aims to break down what a sophisticated commercial real estate buyer and seller should be aware of when it comes to Florida’s daunting (and often misunderstood) real estate transfer tax known as the documentary stamp tax.

What is Florida’s Documentary Stamp Tax ?

Documentary stamp tax on its face may sound confusing, but to understand this form of transfer tax, one must simply break down the two-prong definition: (1) the tax imposed on the document that transfers an interest in real property, (2) when there is consideration paid, or to be paid, for the transfer.

The documentary stamp tax rate is $0.70 for every $100 of consideration (or portion thereof). If the purchase price for real property is $500,000, a buyer and seller should anticipate $3,500 due at closing for documentary stamp taxes. Note, the only exception for this rate is Miami-Dade County where the rate is $0.60 per $100 (or portion thereof) of consideration for a single-family residence, and if the property is anything other than a single-family, the rate is $.06 plus $.45 surtax per $100 (or portion thereof). [1]

Because documentary stamp tax is set by the state government, it is standard practice in Florida for the seller to cover these costs, but it is not set in stone. Each party should make sure any purchase and sale agreement entered into explicitly states who will be the responsible party for such tax.

Was an Interest in Real Property Transferred?

A document that transfers an interest in real property can take many forms outside of a warranty deed or a special warranty deed, which are the instruments most commonly used for the transfer of real property. The Florida Department of Revenue provides a list of documents that transfer an interest in real property and is subject to transfer tax, including: quit claim deeds; contracts for timber, gas, oil, or mineral rights; easements; contracts or agreements for deed; deeds in lieu of foreclosure; an instrument conveying an ownership in a condominium unit; an installment contract, and assignments of leasehold interests and assignments of beneficial interests in a trust. [2]

Do not fear, renting an apartment in the Sunshine State is not subject to any transfer tax. To avoid any confusion, the Florida Department of Revenue provides a clear list of specific conveyances that are not subject to transfer tax. This list includes corrective deeds recorded to correct an error or deficiency on a previous deed on which a tax has already been paid, and leases of real property if the only consideration given to the landlord is the tenant’s promise to pay rent, among other limited exceptions.

Was There Consideration?

“Consideration” is not limited to money, and there does not need to be a formal exchange of cash or a wire of money for the Florida Department of Revenue to consider a conveyance of real estate subject to transfer tax.

For example, if Uncle Jack gifts a real estate investment to his nephew for free, and the property is free and clear of any mortgage or financing, then the deed reflects “nominal consideration”, and $0.70 tax is due.

Now let’s change the facts and say when Uncle Jack gifts his real property to his nephew, there is an underlying mortgage equaling $100,000. In this scenario $700 tax is due (100,000/100 x $.70 = $700), as Florida considers the transferee’s “undertaking of the mortgage” as the consideration, even if the property is a gift.

Here is an example involving commercial real estate: Company Z, which owns Property in Broward County with a fair market value of $2 million, transfers the Property to Subsidiary A. At the time of the transfer, the property has an underlying mortgage in the amount of $3 million, and the property is secured by a line of credit with an outstanding balance of $700,000. There is no consideration for the transfer to Subsidiary A, so the documentary stamp tax is calculated on the total $3.7 million (the mortgage plus the line of credit).

Florida law gives some examples of consideration (money, the discharge of an obligation, mortgages or other liens encumbering the property, exchange of property, and any other monetary consideration which has value), but this list is not inclusive, and should not be relied upon exclusively. [3]

What About Documentary Stamp Tax, Real Property and Conduit Entities?

Generally, when real property located in Florida is transferred from one subsidiary to another subsidiary by a commonly owned holding company (both subsidiaries in Florida are referred to as “conduit entities” under law), there is no documentary stamp tax due on the transaction (unless of course there is an underlying mortgage).

For example: Conduit A and Conduit B are both 100% owned by Holding Company Y. Conduit A transfers real property to Conduit B. Documentary stamp taxes aren’t due on this transfer because both Conduit A and Conduit B are wholly owned by Holding Company Y.

However, investors eyeing a short-term period of ownership must be aware that Florida has concluded if real property is conveyed to a conduit entity, and then all or a portion of that conduit entity’s membership is subsequently transferred within a 3-year period after the real property conveyance, documentary stamp taxes are imposed on the transfer of equity interests. The tax due is imposed on the consideration paid or given in exchange for the equity interests in the conduit entity at a rate of $.70 for each $100 of the consideration paid. [4]

Changing the facts above, Conduit A and Conduit B are still both 100% owned by Holding Company Y. Conduit A transfers real property to Conduit B. Holding Company Y then sells the equity interests in Conduit B to a third party only 2 years and 8 months from the transfer between Conduit A and Conduit B. Transfer tax would then be due on the sale of equity interests in Conduit B.

Is There Any Way to Avoid Documentary Stamp Tax?

If your transaction satisfies the two-part test identified above, the chances of avoiding documentary stamp taxes are slim. However, there are ways, depending on the structure and unique facts of a particular transaction, that documentary stamp taxes can be (potentially) reduced. Investors in real property in Florida should make sure their attorney is well versed in this area of local law when structuring complex transactions that may involve the transfer of real estate.

[1] https://floridarevenue.com/Forms_library/current/gt800014.pdf

[2] https://floridarevenue.com/Forms_library/current/gt800014.pdf

[3] https://floridarevenue.com/Forms_library/current/gt800014.pdf

[4] Florida Statutes, Section 201.02(3)

[ View source .]

Related Posts

• Allocating Risk in Real Estate Sales: Representations and Warranties
• How Bonus Depreciation Can Be A Timely Tool in Real Estate Deals
• Buyer’s Market? Real Estate Broker Verdict’s Effect on Marketplace

Latest Posts

• Summarizing Proposed Changes to Florida Rules of Civil Procedure

See more »

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

Refine your interests »

Written by:

PUBLISH YOUR CONTENT ON JD SUPRA NOW

• Increased visibility
• Actionable analytics
• Ongoing guidance

Published In:

Darroweverett llp on:.

"My best business intelligence, in one easy email…"

Advertisement

Boston's Morning Newsletter

Why a proposed tax on high-end real estate sales in mass. appears doomed (again).

• Nik DeCosta-Klipa

Editor's Note:  This is an excerpt from WBUR's daily morning newsletter, WBUR Today. If you like what you read and want it in your inbox,  sign up here . 

The skies should clear up in time for the 10th annual Donna Summer Disco Party at Boston City Hall Plaza. WBUR arts fellow Maddie Browning has  a full guide to the free dance party. But first, let's skate through some news:

The third time was not the charm:  Boston’s push for a tax on high-end property sales once again looks poised to die on Beacon Hill. The Senate is teeing up its version of Gov. Maura Healey’s housing bond bill for a vote today. And like  the House’s version , the Senate bill also leaves out  the proposal  to let cities and towns enact taxes of up to 2% on upper-echelon real estate transactions to fund local, affordable housing developments. The transfer fee option was backed by Healey, Boston Mayor Michelle Wu and  more than two dozen  other communities. But business groups  lobbied hard against it  and now it looks destined for the same fate it met  in 2022  and 2020, when it was  first sent to Beacon Hill  by then-Mayor Marty Walsh.

• Why? State Sen. Lydia Edwards — who  spearheaded the original transfer fee proposal  as a Boston city councilor in 2019 — points to another local tax option:  the Community Preservation Act . Passed in 2000, the program allowed communities to vote to raise local property taxes (and get state matching funds) to pay for affordable housing, historic preservation and open space. But  some (including real estate forces opposed to the transfer tax) argue  the CPA has been underutilized when it comes to building more housing. “It has not been working as well as it should have,” Edwards said, noting the Senate’s bill includes $50 million in incentives for communities that spend CPA funds on housing. “Before we add an additional tax, we think it’s incumbent upon us to look at what we have already provided in tools,” Edwards said.
• Now what? Wu says she’ll keep pushing for the transfer fee in Boston, noting federal COVID money that helped build more housing will soon “dry up.” The Senate bill also proposes several commissions ( a Beacon Hill favorite ) to study policies like the transfer fee. “This isn’t the end of any conversation when it comes to housing,” Edwards said. “But again, we have several commissions set up to have those conversations.”
• What  did  make it into the Senate housing bill?  Here’s a full breakdown , from new rules for broker’s fees (!) to ADUs to eviction sealing.

PSA:  Need to see a doctor? Massachusetts health care officials are urging residents to consider urgent care centers for less-serious issues, rather than an emergency room. That’s because local ERs continue to struggle with  increasingly long waits and crowding  that’s only expected to increase during the normally busy summer.

• As an incentive, local health insurers, like Blue Cross Blue Shield,  have agreed  to reimburse members for most out-of-network urgent care center visits in eastern Massachusetts.

On campus:  Harvard’s task forces on antisemitism and anti-Muslim bias is recommending the Ivy League school implement anti-bias training and clarify its bullying policies, per their first reports released yesterday. They found both Jewish and Muslim students — as well as those with pro-Israel or pro-Palestinian views — felt discriminated against on the Cambridge campus, following a year of  contentious protests and counterprotests  over the war in Gaza.

• Go deeper: You can  read the full report from the antisemitism task force here  and from  the anti-Muslim bias task force here .

Welcome to the team:  With the final first-round pick of last night’s NBA draft, the Celtics selected Creighton sharpshooter Baylor Scheierman.  Boston.com  has  five things to know about the 23-year-old .

Around New England:  Rhode Island is the latest state to ban “captive hunting.” Gov. Dan McKee  signed a law yesterday  banning the use of manmade or natural barriers intended to prevent animals from fleeing a confined area, such as private shooting preserves or game ranches.

• Zoom out: More than half of U.S. states already have a full or partial ban on captive hunting,  according to the Associated Press .

P.S.— Our Cognoscenti team asked what their readers and writers are hoping to hear during  tonight’s big debate  between President Biden and Donald Trump.  Check out all the responses here . And if you’re in the car or by a radio during the debate, WBUR will carry live special coverage.  Tune in  at 90.9 or on the WBUR App. For analysis and takeaways, hit up  wbur.org .

• What to know about the Mass. Senate's version of Gov. Healey's housing bill
• WBUR Today: Boston’s Morning Newsletter

Nik DeCosta-Klipa Newsletter Editor Nik DeCosta-Klipa is the newsletter editor for WBUR.

More from WBUR

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My watchlist
• Stock market
• Biden economy
• Personal finance
• Stocks: most active
• Stocks: gainers
• Stocks: losers
• Trending tickers
• World indices
• US Treasury bonds
• Top mutual funds
• Highest open interest
• Highest implied volatility
• Currency converter
• Basic materials
• Communication services
• Consumer cyclical
• Consumer defensive
• Financial services
• Industrials
• Real estate
• Mutual funds
• Credit cards
• Balance transfer cards
• Cash back cards
• Rewards cards
• Travel cards
• Online checking
• High-yield savings
• Money market
• Home equity loan
• Personal loans
• Student loans
• Options pit
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Here's how someone could easily steal your real estate property -- and what you can do to prevent it

Ohio real estate experts are warning against fake real estate listings that involve trying to sell a property owned by someone else or forging documents to transfer a deed to someone else.

to submit an obituary

For information on submitting an obituary, please contact Reading Eagle by phone at 610-371-5018, or email at [email protected] or fax at 610-371-5193.

Most obituaries published in the Reading Eagle are submitted through funeral homes and cremation services, but we will accept submissions from families. Obituaries can be emailed to [email protected] .

In addition to the text of the obituary, any photographs that you wish to include can be attached to this email. Please put the text of the obituary in a Word document, a Google document or in the body of the email. The Reading Eagle also requires a way to verify the death, so please include either the phone number of the funeral home or cremation service that is in charge of the deceased's care or a photo of his/her death certificate. We also request that your full name, phone number and address are all included in this email.

All payments by families must be made with a credit card. We will send a proof of the completed obituary before we require payment. The obituary cannot run, however, until we receive payment in full.

Obituaries can be submitted for any future date, but they must be received no later than 3:00 p.m. the day prior to its running for it to be published.

Please call the obituary desk, at 610-371-5018, for information on pricing.

Berks County real estate transactions for June 30

Share this:.

• Click to share on Facebook (Opens in new window)
• Click to share on X (Opens in new window)
• Things to Do
• Classifieds
• Special Sections

Breaking News

I-78 in berks county reopens after crash involving multiple vehicles, tractor-trailers [updated, map], things to do home and garden, subscriber only.

Editor’s note: Some of the transactions do not include a transfer price because no money was exchanged for the property. All deeds are recorded in the Berks County recorder of deeds office and are a matter of public information. There is a delay between when the deeds are filed and their publication. Transactions are based on a file created by the recorder of deeds. For questions, call 610-478-3380 or send email to [email protected]. Alsace Township Edwin C. Shimp Jr. Estate to Luke Nathanael Erb, 208 Apple Lane and Apple Lane and Apple Lane, $450,000. Amity Township Richard R. Tennesen and Shelby L. Tennesen to Justin Shaw and Rateb Masoud, 606 Green Meadow Drive, $635,000. John Heist and Lois A. Heist to Steven Schaffer, 305 Briarwood Drive, $270,000. Samuel Bartle Jr. and Tammy M. Bartle to Megan A. Hanratty, 413 Laurelwood Drive, $345,000. Fredrick B. Wookey III and Maureen Wookey to Danell R. Roberson Jr. and Victoria M. Delligatti, 203 Battenkill Drive, $445,000. Bally Brandee Scheffey to Jonathan R. Smith, 420 Chestnut St., $245,000. Helen M. Moll Estate to Grant Butler, 640 Elm St., $305,000. Bern Township Thomas F. Sebastinas and Maureen H. Sebastinas to Maureen H. Sebastinas, 1001 Victory Cr, $1. Kimberly Elise Colvenbach Estate to Raul Antonio Reinozo Arevalo, 1092 W. Leesport Road and W. Leesport Road, $170,000. Mark W. Longenecker to Charles R. Minehart and Patricia Minehart, 2040 Dennis Drive, $265,000. Harpal Singh and Maria E. Kurtz Singh to Joy J. Sweeney, 611 R W. Main St., $359,179.19. Philip W. Yocom and Kiran Yocom to Kevin Michaelkovich and Kimberly Michaelkovich, 1219 W. Leesport Road, $455,000. Eugene A. Swanson and Kristin B. Swanson and Dorothy G. Swanson to Eugene A. Swanson and Kristin B. Swanson, 302 Sunshine Road, $1. Harlan W. Hoover to Kimberly Escobar Ayala, 516 Lockheed Ave., $265,000. Bethel Township Tiffany D. Felty to Shaun C. Stotz and Alexis K. Stotz, 96 Martin Drive, $295,000. Boyertown Francis X. McLaughlin to Humble Homes Huge Hearts Llp, W. 6th St., $10,000. Brecknock Township Joel L. Snyder and Karen R. Snyder to Christopher A. Nightlinger, 91 Fitterling Road, $380,000. F. Clair Mast and Patricia L. Mast to Nhr Property, 4246 New Holland Road, $287,000. Caernarvon Township Suzanne P. Wetzel and Thomas P. Wetzel Jr. to Alexander Lazos, 102 Briarcrest Drive, $320,000. Centre Township Michele A. McCartney to David C. Marrella and Meredith Marrella, 1188 Railroad Road, $262,000. Colebrookdale Township Tyler Kulp and Wendi Kulp to Kyle James Weidner and Kylee Weidner, 932 N. Reading Ave., $214,200. Cumru Township Steven R. Tumolo Jr. to Camryn A. Focht and Kim S. Focht and Kyle McHugh, 104 Gerald Ave., $222,000. Harold I. Daubenspeck and Joanne A. Daubenspeck to Dylan Becker, 9 Charlemont Court, $248,000. Barbara A. Schlouch to Barbara Schlouch Irrevocable Trust, 957 High Blvd. Charles M. Evans IV and Amber Evans to Charles M. Evans Iv, 74 Harry Ave. Teresa Castro to Jenry Leonel Fernandez Guerrero, 811 Philadelphia Ave., $97,000. District Township Kenneth A. Planer Estate and Mya Trumbauer to Mya Trumbauer and Devon Trumbauer, 895 Huffs Church Road. Douglass Township Deutsche Bank National Trust Company and Ameriquest Mortgage Securities Inc. Asset-Backed Pass-Through Certificates Series 2003-11 to Caleb J. Landis and Rachael A. Landis, 1008 Reading Ave., $86,000. Earl Township Kenneth L. Brehm Jr. and Pamela L. Brehm and Kenneth L. Brehm III to Brianna Axford and Janice Konyk and Erik Gerhardt, 165 Vale Drive, $325,000. Sharon C. Barrett to Kimberly F. Matlack and Matthew R. Matlack, 583 Fancy Hill Road, $270,000. Exeter Township Gary D. Geisler and Mary B. Geisler to Martin Bermudez Guzman, Holly Drive, $132,000. Ryan Yandrisevits and Aimee Yandrisevits to William R. Lander and Ann Marie Lander, 3812 Reiff Place, $342,000. George I. Weiss Estate to Martin S. Weiss, Holly Drive, $1. Ryan D. McFadden and Jeanne M. McFadden to Jeanne M. McFadden, 2 Longview Drive. Anthony N. Nwokedi and Livina Nwokedi to James C. Gierlich and Rita J. Gierlich, 4520 Hillside Road, $330,000. Anthony Buttacy and Donna Buttacy to Christina Smith and Ciara Diehl, 6247 Pond View Drive, $298,000. James C. Hawk Estate to Sarah Street Trust, 331 S. Baumstown Road, $245,000. Sheldon N. Broadwin Estate to Daniel Kollmeyer and Kendra Kollmeyer and Bruce Kollmeyer and Rose Kollmeyer, 1247 Lehigh Ave., $211,500. Norma Batchelder and William A. Batchelder to Salvatore Cione and Lisa Cione, 4626 N. Pheasant Run, $245,000. Jennifer Smith and Jennifer Konnick to Ione Williams and Brittany Comer, 315 Melrose Ave., $169,900. Robert H. Bannon Jr. and Linda A. Bannon to Anthony Nwokedi and Livina Nwokedi, 206 Coral Lane, $412,000. Earnest L. Herbst and Suzanne R. Herbst and Ernest L. Herbst to Earnest L. Herbst and Suzanne R. Herbst, 1314 Fox Run. Fleetwood R. And D Property Management LLC to Emmanuel E. Taveras and Yennifer Fernandez De Los Santos, 219 S. Richmond St., $320,000. Greenwich Township Greenwich Commons LLC to Ptv 1203 LLC, Old Rte 22, $200,000. Norman A. Ulrich Jr. Estate to Andrew Dietrich and Amber Trexler, 87 Snow Drift Road, $527,000. Hamburg Ronald A. Hulet Estate to Megan Hoffman, 522 N. Turner St., $250,000. Erika Brown and Daniel C. Brown to Brett Mazzerle, 112 S. 3rd St., $128,000. Gail A. Grill Estate to Carmelo J. Claudio, 833 N. 5th St., $265,000. Carmelo Claudio to Chloe Frisch and Brian Frisch, 638 Catherine St., $249,500. Katelynn Frey and Abby Frey to Abby Frey and Katelynn Frey, 217 S. 3rd St. Jon C. Simpson Estate to Jocelyn Vargas Simpson, 216 Washington St., $1. Jon C. Simpson Estate to Jocelyn Vargas Simpson, 335 State St., $1. Heidelberg Township Jamie L. Harms and Leslie A. Scheuer and Elaine E. Harms Revocable Trust to Nelson R. Brubaker Jr., 932 W. Penn Ave., $539,910. Nelson R. Brubaker and Ann S. Brubaker to Nelson R. Brubaker Jr., 946 W. Penn Ave., $1. Nelson R. Brubaker Jr. to Nelson R. Brubaker Jr., 932 W. Penn Ave. and 946 W. Penn Ave., $1. Hereford Township John W. Campbell and Denise R. Campbell to Seth Ohare, 7194 Pine Tree Road, $487,425. Donald L. Heimbach and Elizabeth A. Heimbach to Michael Lisuzzo and Molly Lisuzzo, 149 Church Hill Road, $405,000. Jefferson Township Rosa Roseberry Prop LLC to Robert Ashley and Kyong Ashley, 7326 Bernville Road, $575,000. Ramon Torres and Kelly Torres to Brian Alan Reiger, Clubhouse Drive, $57,500. Kenhorst Clint L. Hoffman to Natalie Abreu and Kehwent Guevara Abreu, 1439 Liberty Ave., $139,900. Angel Ramon Lopez Vasquez to Swift Property Solutions LLC, 1234 Commonwealth Blvd., $180,000. David D. Kroninger and Karen H. Kroninger to Joshua Smydo, 904 Highwood Ave., $277,000. Kutztown Kevin S. Fisher to Jason David Browning, 205 Noble St., $250,000. Northeastern Realty Properties LLC to Lwf146 LLC, 146 W. Main St., $295,000. Remark Investment Group Ii LLC to Gmia Properties LLC, 455 W. Main St., $775,000. Gloria A. Hayes Estate to Brett M. Gift, 704 Highland Ave., $1. Longswamp Township Herman M. Boyer and Vici J. Boyer to Eric Yoder and Marlene K. Yoder, 175 Longsdale Road, $550,000. Matthew J. Miller and Melissa D. Miller to Jenny M. Dengler and Craig Reinert, 600 Kennedy Ave., $429,900. Lower Heidelberg Township Irfanullah Haider and Denisse Haider to Irfanullah Haider, 12 Lisa Road, $1. Paul Bleile to Owens Family Trust, 38 Hubbardton Court, $335,000. Stephan R. Myers and Bethel F. Myers to Benjamin Jared Renninger and Joanna Michele Zias, 181 Green Valley Road, $490,000. Lyons Donald L. Brintzenhoff and Drake A. Brintzenhoff to Site Technologies LLC, 10 S. Kemp St., $125,000. Marion Township Jesse M. Unger and Jennifer L. Unger to Jesse M. Unger, 889 Canal Road, $1. Maxatawny Township Glenn F. Thomson to Zachary Caruso and Nicolette Forrest Thomson, 394 Hottenstein Road, $342,000. Mohnton Mary Jo Hollis Estate to William Hollis, 201 N. Church St., $145,000. Mount Penn 27 S. 23rd Limited Liability Company LLC to Devell J. Perdue Sr., 27 S. 23rd St., $285,000. Muhlenberg Township Raul Maldonado Jr. to Veronica Lacosta and Kymberlin Lacosta, 4003 6th Ave., $308,000. Elvis E. Taveras Delgado to Elvis E. Taveras Delgado and Arline Diaz Caba, 733 Euclid Ave., $1. Nichelle E. Soldo and Richard G. Soldo III to Jonathan S. Beltran, 828 Rhodora Ave., $320,000. Camilli Bro Automotive Inc. to Ashley Contreras, 136 Bennett St., $155,100. Roberto C. Velasco and Ana D. Hidalgo to Ana D. Hidalgo, 104 Jefferson St. and 102 Jefferson St., $1. James L. Brodie to Elias Vazquez and Lysandra Vazquez, 1004 Helm Lane, $460,000. Tammi L. Moyer to Reinaldo Sanchez, 152 Madison Ave., $95,000. Sallie H. J Matz to James R. Matz Jr., 2324 Elizabeth Ave., $1. Kyle A. Mattiuz to Lisa Jozwiak, 1004 Parkway Drive, $317,000. Mainor G. Guerra Guerra and Sandra M. Zecena Yanes to Junior F. Rosa Valle, 1133 Beaumont Ave., $290,000. Lydia House LLC to Pa Flipbros LLC, 3021 Kutztown Road, $170,000. North Heidelberg Township Ryan Neal Martin and Kathryn Elizabeth Martin to Rodolfo Rios and Courtney Renee Rios, 1105 Milestone Road, $675,000. Kathryn Elizabeth Martin and Ryan Neal Martin to Kathryn Elizabeth Martin and Ryan Neal Martin, 1105 Milestone Road, $1. Oley Township John Reich to Stacie Weidner, 434 Main St., $375,000. Ronald L. Kelchner and Barbara J. Kelchner to Kelchner Farms LLC, 143 Hoch Road and Bertolet Mill Road. Pike Township Thomas Szilli and Janice Szilli to Thomas Szilli, 106 Mine Road, $1. Mary Beth Huff and Scott Bubbenmoyer to John Summers and Deborah Summers, 232 Old State Road, $430,000. Richard A. Wheeler and Beth K. Wheeler to Jessica Dranzik and Maryann Dranzik, 365 Oysterdale Road, $600,000. Reading Terra Nova Trade LLC to Jerinson B. Diaz Rodriguez, 436 Birch St., $124,000. Johensy Veras Quezada to Carla M. Concepcion Nolasco, 651 N. 12th St., $165,000. Maritza Gonzalez to 2021 Norristown LLC, 114 S. 11th St., $131,000. Dunia Trochez to Mariana C. Trochez, 1740 Cotton St., $1. Julio Gonzalez to Cg Home Buyer LLC, 512 N. Front St., $120,000. Francisco A. Rodriguez Franco to Reiny L. Maldonado Gomez, 1142 Mulberry St., $174,000. Josefina Batista to Hector Manuel Batista, 1514 Luzerne St., $10. Daniel H. Rauenzahn Estate and Catherine A. Rauenzahn to Haven Real Estate Investments LLC, 1427 N. 12th St., $130,000. Leszek A. Pielechaty to Yasmin A. Cruz Abreu De Tavera and Andy J. Tavera Nunez, 125 S. 12th St., $170,000. Emelia Kenora Chacon and Julio Daniel Ponce Ramos to Emelia Kenora Chacon, 1043 Elm St., $1. Ronny Ruck to Ricardo E. Plasencia, 520 N. 12th St., $30,000. All Weather General Construction LLC to 101 Walnut LLC, 101 Walnut St., $460,000. All Star Team of 4 LLC to Romery A. Brito Perez, 318 Bern St., $170,000. R&F Management LLC to Pcg Realty LLC, 601 Lancaster Ave., $900,000. Opus Management Services LLC to Brenda Lee Falu Diaz and Juan Diaz Santiago, 1551 Mulberry St., $183,000. Anibal Silva to Waheguru Associates LLC, 310 S. 5th St., $315,000. Sl & Ap Real Estate LLC to Daniel Esteban Garcia Minaya and Emelda E. Minaya Espinal, 859 Schuylkill Ave., $213,000. Mary J. Keiser to Julio E. Navas Escobar, 720 N. 12th St., $135,000. Carmelo Vazquez and Luz Maria Vazquez to Emerald Property Investments LLC, 259 S. 17th St., $85,270. Jeffrey W. Kipp Estate to Kingsway Investments Limited Liability Company LLC, 216 W. Douglass St., $60,000. Jeff W. Kipp Estate to Kingsway Investments Limited Liability Company LLC, 1758 Perkiomen Ave., $70,000. Layla Garcia to Ethan Vink, 603 Maple St., $123,500. Alexis Pena to Caroline Villanueva Martinez and Ricardo Y. Santana Mendret, 223 Chapel Tc, $200,000. Reading Parking Authority to Jackson Democratic And Social Club of Reading Pennsylvania Inc., 1200 N. 10th St., $40,000. Vtf Renovations LLC to Efrain Sibri and Tannya Palaguachi, 1008 Locust St., $120,000. Geraldine Moyer to Sheldon Leigh Moyer, 502 Pike St. Eliub Fernandez to Klajdi Kodrasi and Nertila Kodrasi, 350 N. 11th St., $57,000. Salvador Gallo to Maria C. Gallo Navarro, 636 N. 13th St., $1. Maria Cespedes to Mc Perry LLC, 1241 Perry St., $41,000. Jon C. Simpson Estate to Jocelyn Vargas Simpson, 1227 Carbon St., $1. Randall A. Harting to Kervin Fougere, 205 Douglass St., $212,500. Carlos Antonio Collado Espinal to Jlc Rental Properties LLC, 430 A Minor St., $90,000. Miguel Delgado and Guadalupe Delgado to Guadalupe Delgado Munoz, 322 S. 16th St., $1. Marcell Coulibaly to Jr. Skys Limit LLC, 213 Hudson St., $500. Rafael Fuentes Andrade to Jr. Skys Limit LLC, 209 Hudson St., $500. All Star Team of 4 LLC to Kirsy Severino Batista, 211 N. 2nd St., $165,000. Khanh Huu Doan to Our City Reading Inc., 245 Washington St., $80,000. Ivan Perez to Rdg Iron Investments LLC, 739 Bingaman St., $46,000. Vannesa Torres Montes to Rdg Iron Investments LLC, 743 Shearer Garden Drive, $1,000. Vannesa Torres Montes to Rdg Iron Investments LLC, 741 Bingaman St., $1,000. Inmaculada Duran to Angelene Pierre, 1026 Chestnut St., $190,000. Ramon Sanchez Cabrera to Belkys Taveras and Fernando A. Rivera Paulino, 449 N. 10th St., $175,000. Gerald Lugo to Vianka R. Roa Jimenez, 1564 N. 10th St., $195,000. Jose R. Bencosme to Maria L. Lopez De La Cruz, 1440 Cotton St., $136,000. Richmond Township Eric R. Mertz to Anthony B. Burkholder, 604 Crystal Cave Road, $289,000. Christa L. Hartman and Ryan G. Hartman Estate to Kingdom Foundations LLC, 288 Poplar St., $235,000. Robeson Township Carlton W. Harrison to Samuel R. Stoltzfus, 449 Golf Course Road, $329,250. William D. Wright Jr. and Sarah N. Wright to Douglass Allen Drost and Kelsey Lynn Robinson, 222 Proudfoot Drive, $250,000. Ryan Daley and Sarah Keane to Ryan Daley, 4449 Main St., $1. Robesonia Jack L. Keener and Peter Klassen and Klassen Construction to Leon Elkins and Marie Elkins, 457 Smokering Drive, $283,500. Amanda McGuire to Amanda McGuire, 133 Ege Court, $1. Rockland Township Harvey R. Sterner to Robert Carvajal, 93 Five Points Road, $60,000. Brigitta C. Poch to Edward J. Galgon and Jessica A. Long, 22 Bick Road, $640,000. Heath Henry Eckert and Nicole Faith Eckert to Christopher M. Lancaster and Alix I. Lancaster, 20 Ridge Drive, $465,000. Ruscombmanor Township Caskie Management Services LLC to Richard Haring and Susan Keefe, 274 Walnuttown Road, $435,000. Patricia A. Miller to Jason Gauby and Christina Gauby, 263 Walnuttown Road. Shoemakersville Desiree Stetler to Gavin Weil, 625 Water St., $240,000. Sinking Spring Pearl A. Greath Revocable Living Trust to Severina A. Vargas, 229 Elwyn Ave., $267,000. Andrew Stout to Jer 37 Enterprises LLC, 3996 Penn Ave., $220,000. Kathryn M. Nonnemacher to Kathryn M. Nonnemacher, 28 S. Hull St., $1. South Heidelberg Township Samantha M. Trymbiski to Beny Iordanescu and Robyn Leigh Redcay, 709 Hill Rd Unit 1, $150,000. Ned H. Kauffman Jr. and Dorothy M. Kauffman to Nicholas Gerloff and Sarah Gerloff, 21 Shelly Drive, $449,700. Spring Township Magda Vicente Graciano to Michelle I. James, 106 Bainbridge Cr, $300,000. Daniel R. Jopp and Lisa A. Jopp to Charles C. Koch and Mary J. Koch, 2106 Rosewood Court, $435,000. Andrew Stout to Nicholas David Winter and Kendra Winter, 207 Miller Road, $455,000. Cg Home Buyer LLC to Pa Flipbros LLC, 6 Matthew Drive, $320,000. Jon C. Simpson Estate to Jocelyn Vargas Simpson, 1739 Portland Ave., $1. Jon C. Simpson Estate to Jocelyn Vargas Simpson, 2174 Reading Ave., $1. Debra A. Reed to Kenneth S. Winterhalter and Marsha A. Winterhalter, 10 Woods Way, $1,090,000. Dung Nguyen to Pham Huu Danh, 1805 Colony Drive, $135,000. St Lawrence Robert J. Magee and Marilyn B. Magee to Christopher Gibson, 3865 Kline Ave., $440,000. Tilden Township Mildred N. Shollenberger to Logan L. Shollenberger and Jamie Rae Shollenberger, 434 Pine Road, $181,000. Rita M. Jurgielewicz to Rj Estates LLC, Bachmoll Road, $1. Rita M. Jurgielewicz to Rj Estates LLC, 224 Cheese Lane, $1. Rita M. Jurgielewicz to Rj Estates LLC, 52 Bachmoll Road, $1. Rita M. Jurgielewicz to Rj Estates LLC, 50 Bachmoll Road, $1. Rita M. Jurgielewicz to Rj Estates LLC, 40 Bachmoll Road, $1. Rita M. Jurgielewicz to Rj Estates LLC, 282 Fisher Dam Road, $1. Rita M. Jurgielewicz to Rj Estates LLC, 148 Cheese Lane, $1. Rita M. Jurgielewicz to Rj Estates LLC, Cheese Lane, $1. Rita M. Jurgielewicz to Rj Estates LLC, Cheese Lane and Cheese Lane, $1. Vincent F. Carosella to Vincent F. Carosella and Joan R. Carosella, 100 Industrial Drive, $1. Topton Scott A. Yenser and Karen D. Yenser to Yenser Family Irrevocable Trust, 138 S. Callowhill St., $1. Tulpehocken Township Mount Aetna Developers Inc. and Alden Homes At Cornwall Inc. to Lairy K. Bishop and Colleen A. Bishop, 67 Clover Drive, $491,398. William H. Keener and Gladys M. Keener to Mark A. Hassler, 5 E. Market St., $239,900. Ryan A. Gettle and Sierra Gettle to National Residential Nominee Services Inc., 17 A W. Market St., $330,000. National Residential Nominee Services Inc. to Justin Weatherholtz and Shauna Weatherholtz, 17 A W. Market St., $330,000. Kyle Howard and Victoria Kasey Elmore to Debbie Lynn Rupert and Robert R. Rupert, 23 Parkside Inn Road, $390,000. Union Township Krystal Jean Louis to Emily Lynn Frederick and Anthony Frederick and Anthony Charles Hee, 9 Queen St., $575,000. Daryl Umble and Lynn Umble to Austin S. Reinert, Union St. and 214 Union St., $141,000. Michele Cooper to Thomas A. Lynch Jr. and Colby Allan Lynch and Ryan Thomas Lynch, 2389 E. Main St., $200,000. Upper Bern Township Zachary Dietrich to Zachary Dietrich and Amber M. Dietrich, 48 Lesher Mill Road, $1. Upper Tulpehocken Township US Bank Trust Company National Association and US Bank National Association and Residential Asset Mortgage Products Inc. and Residential Asset Mortgage Products Inc. Mortgage Asset-Backed Pass-Through Certificates Series 2005-Efc4 to Ronald Light and Rondell Light, 33 Main St., $80,000. Washington Township Thomas E. Augustine to Jeremy Augustine, 15 Sycamore Road, $295,000. West Reading Honest Acquisitions LLC to Chrystine Mitchell, 428 Oak Tc, $269,000. Sarah E. Rupp to Peter Shaw and Sandra Shaw, 416 Sycamore Road, $250,000. Windsor Township Bruce D. Horninger to Steven R. Wodock and Donna E. Wodock, 450 Creek Lane, $300,000. Womelsdorf Margaret M. Marderness to Homestead Capital LLC, 32 N. 2nd St., $140,000. Wyomissing Charles H. Contreras and Janet Pena Santiago to Juan A. Acosta Hiciano, 121 Woodland Road and Woodland Road, $408,000. Carmela M. Carlo Estate and Jeanette Del Valle to Justin Reilly, 1707 Penn Ave. Carmela M. Carlo Estate and Jeanette Del Valle to Jeanette Del Valle, 1707 Penn Ave. Jacqueline M. Beem to Megan L. Raanes, 9 Plymouth Place, $481,000. Jeanette Del Valle to Justin E. Reilly, 1707 Penn Ave., $190,000. Mama Paola LLC to Quang Chu, 438 Oley St., $405,000. Berkshire Orthopedic Associates Investment Group to Motus Development 8 LLC, 2201 Ridgewood Rd C250, $607,500. Berkshire Orthopedic Associates Investment Group to Motus Development 9 LLC, 2201 Ridgewood Rd B2, $727,500. Beniamino Grande and Terrance E. Derr Jr. and Terrance E. Derr III to Nathan Burkhart and Keri Marini, 428 Oley St., $325,000.

More in Things To Do

Music and Concerts | Pennsylvania Philharmonic to perform free concert at The Hill School in Pottstown

Travel | 10 theme brunches in Las Vegas you need to try

5 reasons you should buy Questlove’s new book, ‘Hip-Hop Is History’

Health | Here are some reasons you get muscle cramps and what you can do about them