Tidbits on an Assignment of Contract Handled By a Real Estate Lawyer Markham
23/06/2022 15:33
An assignment of contract handled by a real estate lawyer Markham involves transferring a contract from the original party called the assignor to a new party called the assignee. This transaction will relinquish the assignor’s obligations, responsibilities, and rights to the assignee. Here are tidbits on the assignment of contract to guide your real estate investment.
How will an assignment of contract work?
In most cases, an assignor is an intermediary for a property seller selling his/her right of the property purchase with equitable interest to a potential buyer. The assignor will find a property and enter a sale agreement with a seller to purchase it. The contract drawn by a real estate lawyer Markham lists the buyer, seller, property price, and closing date. When the assignor finds another buyer to fulfill the agreement’s terms, the contract transfers to this new buyer, who pays an assignment fee to the assignor.
What differentiates a double closing from an assignment contract?
The primary difference between these two aspects of real estate transactions is the number of closings. There is only one closing in an assignment of contract after the assignee pays a property seller for a sale. In a double closing, the assignor will buy property from the seller and then resell it to an end buyer. This results in two sequential closings.
Are there advantages to assignment contracts?
Yes, as an assignor, you can make a quick profit by finding a property’s end buyer. Even if you get a buyer who changes his/her mind, you can still get a profit. This is because you can set a non-refundable deposit amount that the buyer should pay upfront.
The above tidbits might give you an idea of what an assignment of contract entails. Nonetheless, this real estate aspect is not as straightforward as finding an end buyer and collecting a profit. Get a real estate lawyer Markham to guide your transaction and protect your interests.