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What is Assignment?
Real Estate Investing
How to get
started
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to finding a good deal
Property Investments
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MARKET VALUE
explained
What you're attempting to do here is called 'Assignment.' That's when you find someone to take over the responsibility of your contract. Contract rights are considered property, so the rights can be transferred in very similar manner to that of a home or car.
For example, I have an agreement to purchase a set number of yo-yos each month from a toy vendor, at a fixed price. The purchasing contract lasts one year. But I decide buying these you-yos is profitable for me and I'd rather not continue buying them. Providing it's allowed in the contract, it's legal to assign contracts under my state's laws. I can just find someone else to buy the same number of yo-yos each month and "assign" my rights and obligations under the contract to them.
Generally a contract will allow an assignment, provided that the other contract party approves the assignment. Lots of contracts require the other party's approval before an assignment. That keeps them protected as long as the assignment is "reasonable," and won't increase the other party's risks or jeopardize the security of the other party.
If the contract requires the other party to consent, then a good rule of thumb is to get written consent before committing to a contract assignment.
Of course when you assign a contract, you may remain responsible for the performance of the contract. If the contract's assignee (the person you're assigning the contract to) breaches the contract you can be held liable for losses.
A lawyer can help you draft an written agreement tailored to your specific circumstances, with language that clearly spells out everyone's responsibilities and rights. In these circumstances, it is always a good idea to have a legal representative oversee the paperwork. By taking the time to speak to a lawyer, you can minimize the possibility that you'll be stuck "holding the bag" if the assignee can't fulfill their contract obligations.
When it comes to assigning a real
estate contract you can ask for anywhere form $5,000 - $10,000 as
assignement fee.