Is Contract Assigning Illegal In Any State?

Is Contract Assigning Illegal In Any State?

Is Contract Assigning Illegal In Any State?

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No

The best answer is no.

The more correct answer is there are some state that have more requirements than other states. Take for example California. They have some funny laws that make assignments difficult. The best item to do in that state is to get a lawyer who will close the transaction instead of a title company. The reason you would do this is so they can write the contracts and create the wording that allows you do assignments or at least something very similar to assignments.

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That depends on what

you are trying to assign. You can not assign short sales and if you put and/or assigns on a contract for a foreclosure most times the banks will throw out your offer. I would not say the answer is No. I would agree to have an attorney write the contract because they will put a clause in the contract instead of and/or assigns.

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Banks and Assignments

I have heard for years that banks "cannot" do assignments. I have also heard that assignments with banks are illegal.

This is just not the case banks have every right to accept a contract with and/or assigns on the contract. Here is the deal just as it was alluded to by Shaun banks do not like to accept them. Will they? - Yes. Do they normally? - No.

As far as illegal there are no state that an assignment is illegal. Texas, California, Ohio, and a couple of others have some interesting laws and may not call the selling of a contract an assignment ... but really it is an assignment with a different name.

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I didn't say it

was illegal, you shouldn't have a problem with the banks on a FSBO but foreclosures and short sales you will have an issue.

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"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude."

Shaun Omar
DSD Investor Group Inc

www.dsdinvestorgroup.net
www.decoscapesinc.com
http://h1.flashvortex.com/display.php?id=2_1315708016_24517_144_21583_70...


Oh Great...

Thanks Nate and Shaun for the info,

it just so happens that those are the three states where I'm doing rei! Sad

So... what would be the best way to 'assign' a short sale?
fix and flip, or double close?

Learning and progressing every day,
Valerie

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Assigning on a Foreclosure

Thank you for discussing this. I too have a question about assigning. What do you do in a situation when placing an offer on a foreclosure that you want to assign? Is there anyway to assign the contract once accepted by the bank, if so, how is this done. I just submitted an offer today on a foreclosure and would like to assign, but I did not include the assignment paperwork and I am now not sure how to move forward with the assignment if the bank accepts my offer. Can anyone offer suggestions?


Hey Valerie

Valuni wrote:
Thanks Nate and Shaun for the info,

it just so happens that those are the three states where I'm doing rei! Sad

So... what would be the best way to 'assign' a short sale?
fix and flip, or double close?

Learning and progressing every day,
Valerie


You can't assign short sales so you would have to do a double closing. But you have to make sure the contract allows this. In a lot of cases the banks are putting seasoning requirements in their paperwork. Another way to assign a short sale is to close in a land trust and then you can assign the trust.

__________________

"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude."

Shaun Omar
DSD Investor Group Inc

www.dsdinvestorgroup.net
www.decoscapesinc.com
http://h1.flashvortex.com/display.php?id=2_1315708016_24517_144_21583_70...


you can assign

FamilyFirst wrote:
Thank you for discussing this. I too have a question about assigning. What do you do in a situation when placing an offer on a foreclosure that you want to assign? Is there anyway to assign the contract once accepted by the bank, if so, how is this done. I just submitted an offer today on a foreclosure and would like to assign, but I did not include the assignment paperwork and I am now not sure how to move forward with the assignment if the bank accepts my offer. Can anyone offer suggestions?

foreclosures, however you will need to have it in your contract that this contract is assignable. As Nate said, most contracts are assignable unless they say otherwise but it's always best to include it in your contract. You do not want to put and/or assigns next to your name on your contract, the banks don't like it and will most times throw it out and not consider it.

__________________

"Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude."

Shaun Omar
DSD Investor Group Inc

www.dsdinvestorgroup.net
www.decoscapesinc.com
http://h1.flashvortex.com/display.php?id=2_1315708016_24517_144_21583_70...


Legalities & Realities

Shaun & Nate, Both correct. Reality is a large number of banks NOW don't like them. Legally, in one form or another they are legal. If need be, stick the assigning clause in the addendum whether it says it in part one of the main part of the contract or not. Nicely tucked it in wording there. Using an addendum will change the contract even if it say non-assignable in the first part. Right, Nate? If the whole contract is accepted it then is assignable.
The banks are getting picky about the trust part now too in certain parts of the country. None of it is a legal issue it is their preference and the title companies preferences.
Disclaimer:
Do your homework and get your attorney to work on it/look it over. You'll want one to look it over anyway. (There is a section of pre-paid legal that is for RE, inexpensive coverage.)


California

I live in southern california and I am in the process of finding my Real Estate agent and I am wanting to do Wholesale and I am reading all this stuff about Calif and not allowing assignment and that I need an attorney to do that for me....ugh!! Smiling Well I am going to keep moving forward and worst case scenario I will build a team some where else, that allows assignments and double close without difficulties.

Lisa C

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Lisa Calhoun


Attorney

Lisa-thewholedeal1 wrote:
I live in southern california and I am in the process of finding my Real Estate agent and I am wanting to do Wholesale and I am reading all this stuff about Calif and not allowing assignment and that I need an attorney to do that for me....ugh!! Smiling Well I am going to keep moving forward and worst case scenario I will build a team some where else, that allows assignments and double close without difficulties.

Lisa C

Shaun and I have given great information on assignments. California is a funny little state with some of its laws and requirements. True assignments are a little different in that state. The best thing to do is get a lawyer.

You say ugh about lawyers. I can understand how you feel but you will see as I have seen that lawyers are as easy if not easier to work with than title companies. You will also find that lawyers cast about the same as a title / closing company.

Most people see lawyers and think...great there goes my wallet. This is just not the case. Having a lawyer can be a very valuable member of your power team.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


FYI

http://www.findlegalforms.com/product/texas-contract-assignment/

This packet contains:
(1) Instructions and Checklist;
(2) Information about the Assignment of Contract; and
(3) The Assignment of Contract (the “Assignment”).

State Law Compliance: Designed for use in all states.


Lawyer

TRSD wrote:
http://www.findlegalforms.com/product/texas-contract-assignment/

This packet contains:
(1) Instructions and Checklist;
(2) Information about the Assignment of Contract; and
(3) The Assignment of Contract (the “Assignment”).

State Law Compliance: Designed for use in all states.

This is great. Keep in mind that findlaw.com uses generic contracts. The contracts can be used in all states but there may be a need to implement them different than was originally written. Texas, and California are prime examples of this. Using a lawyer is still highly suggested because of the value they can offer your business. Not only can they help you close on assignments but they can also help you with items such as referrals, guidance, and even leads on property.

Thanks for posting this information.

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If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


California Contract

CaliTony wrote:

I will move forward & ask him to include it in the addendum. Realtor is telling me offers w/consist of 30 pages long? Is this correct? for Calif? I know Ca has some really hilarious laws believe me, wheew.

California has a lot of pages to their contract...well, really it is the addendums to the contract that they have a lot of. You may get upwards of 17 pages. 30 seems a little unrealistic unless you have every single addendum to the purchase contract. Really, looking at this it may seem a little daunting to do 30 pages each time you make an offer but you most often will sign or change just two pages of the contract - the first page and the last page. The rest of the pages you can copy and use over and over again.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


Template

If your Realtor has a template that is completely great. Chances are they do not have a template so an easy alternative is to make copies of all of the pages and sign and change only the first and last, or at least all of the pages that change. The rest of the pages can be written so that the information never changes. For example: if a date is required instead of writing a date you could put "____ days from acceptance of contract." This way you never need to input a date and you could make copies over and over again.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


State Contract

CaliTony wrote:
Right I remember that in The Edge training by Matt larson, there isn't a template on this site is there? We just have to use the standard Calif contract or purch agrement huh?

Your state contract will be the best for you hands down. The reason is that your state will have statutes and requirements that a general contract will not have. There are general contracts and it is true that they are fully legal but there is that little missing piece of following all the requirements of your state.

For anyone they can get contracts from their Realtor. If a Realtor is unwilling to give the contract to you you may call a title / closing company and they can send you the same contract. Then, you may want to consider another Realtor...if a Realtor does not give you a contract? You need another.

__________________

If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125


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