Assignment Fees and Deposit Question

[MonteDobson]

Bit of a dumb question, but I have a property under contract that I am looking to assign to another buyer (for a fee) and am wondering the exact process.

Obviously the new buyer assumes the purchase contract based on the terms that I negotiated and would pay the fee once it is signed over to him, but what happens to my initial deposit that I put down with the realtor? Do I collect the deposit amount from the assignee of the contract, or from the realtor?

Thanks!

 

[Thomas Beyer]

Not every contract is assignable .. UNLESS
a ) you stated as the purchaser "Your name and/or Nominee" .. or
b ) you have a clause specifically allowing this in the contract, or
c ) the seller allows it after you agreed to a contract amendment (in case a ) or b ) doesn`t allow it)

Your deposit stays with the realtor / seller as agreed.

The assignment contract should address this issue such that the $ figure is hopefully higher than the deposit amount ! It should also address what $ amount gets released to whom and when.

The case gets more complicated if
a ) the person you assign the contract to does not close. Usually it means you are now on the hook for the contract, or
b ) if the seller refuses to cooperate. You may have an obligation to the 2nd buyer that you can`t deliver on.

So proceed with extreme caution here .. many a deal landed in court if things don`t work out as planned.