Florida Assignment of Contract

In Florida’s Real Estate Purchase Contract there is a section where you are able to check a box in order to indicate the contract will be assignable.

When you are assigning a contract you’ll use the state approved contract and
you can use Dean “Assignment Contract” which will is free.

On the bottom left side of the website you can click on the link entitled,
“Forms & Docs” and from here you can download his Assignment Contract.

As long as the seller agrees that the contract can be assigned, you’ll just
fill out Dean’s contract in order to assign it to your cash buyer.

What should I do if the seller wrote up the contract after our verbal agreement to purchase and in the contract it was checked that the contract could not be assigned? I have not yet signed the contract, can I have the seller re-do the contract to meet my standards?

Is this a MLS listed property that you are working through an agent on?

Michael

No, it is a FSBO.

Florida allows for multiple layers of investors when it comes to contract assignments of rights. The initial investor seeks out property to purchase. This can be in the form of real estate, vehicles or other property. However, it typically involves real estate. The investor makes an offer to the owner and, if the offer is accepted, both parties are bound by contract to the deal.

Enter the Second Investor

The investor has the right to follow through and close on the property and become the owner. The investor also has the right to enter into a contract with a second investor, through an assignment of contract rights. Florida law also allows the first investor to make a profit in the assignment. For example, the first investor locates a property about to go into foreclosure. The note on the property is $110,000. The property is worth $200,000. The first investor makes an offer of $110,000. The offer is accepted and the first investor then turns around and accepts an assignment of rights contract by the second investor for $130,000. Thus the first investor will make a profit of $20,000 on the deal.

Assignment of contract rights provides a venue for profit for investors. The first investors on the scene make the initial purchase and then decide at what price to set the assignment of rights contract. The second investor must, by virtue of the contractual process, see how much the first investor paid for the property. The second investor may decide that the first investor is trying to make an unfair profit and balk at the asking price. cwebb

I get calls from students from time to time saying it is unlawful to do AoC and clearly they have been mis-informed. so here is the link which contain the document to use.
This agreement is used by individuals or entities located in Florida wishing to assign all their rights and obligations under an existing contract to a new individual or entity. An assignment of a contract is permissible if it is not prohibited under the original contract or if permission is granted by the non-transferring party. This document can be used by a party who wants to transfer their rights and obligations under an existing contract to a new party.

http://premium.docstoc.com/docs/107494155/Florida-Assignment-of-Contract
rbailiff/florida

Thx guys this is making me a better investor.