reference
glossary.
25 terms
definition
Assignment of contract is a legal arrangement where the original buyer (assignor) transfers their rights and obligations under a purchase agreement to another party (assignee). This allows the assignee to step into the original buyer's position and complete the purchase. Assignment of contract is commonly used in real estate investing, particularly in wholesale deals, but requires proper contractual language and may need seller approval.
examples
- —The investor assigned the contract to another buyer for a $5,000 assignment fee before closing.
- —The purchase agreement included an assignment clause allowing the buyer to transfer their rights to a qualified party.
- —Assignment of contract enabled the wholesale investor to control the property without using their own capital.