Sellers Attorney will not allow Assignment (New Jersey)

If there is no clause in your contract that specifically says, "This contract is not assignable", any contract can legally be assigned--even without having the and/or assigns in it.

If there is no clause stating that, merely removing the and/or assigns and proceed.

Karen

karen is right if there isn't an language regarding ans/or assigns then you are OK.

GO Bimal GO!!!

Hmmm.... Little too late.

The sellers attorney agreed to Assignment after I had a word with her.
Tomorrow I am going to her office to pick up the revised executed Contract,
After I assign the contract she wants to get the buyer's attorney contact info,
Now I do not know why she wants that information.

In addition to AND/ OR ASSIGNS , my contract also had an Assignable close.

Karen and Donna, Thanks for your input.
One question if I had not put AND/OR ASSIGNS and at closing if the seller finds out I am not at the closing , wouldn't the seller be upset and walk away. Wouldn't the sellers attorney object to this.

So glad you were able to get it worked out.

When you find the end buyer, you both sign an Assignment Agreement (this is also when I get my check from buyer for my assignment fee). Then you take the original contract and the Assignment Contract to the entity that does the closing. (Some states it is title company, some states atty) You keep your check.

The seller may be surprised when you are not at the closing, but he isn't going to walk away over that. Two reasons. One, he wants to sell the property, so he really doesn't care whose money is going into his acct. Two, he is legally obligated under contract. The seller's atty has no grounds to object. Assigning a contract is completely legal as long as there is nothing in the contract stipulating that it is not allowed.

Karen

I already have buyers lined up and waiting to order inspection once
Assignment Agreement is executed.

But when I execute the agreement I am not getting the full Assignment fee but a deposit at signing and the balance at closing.

My seller's attorney has also asked me to deliver to her the executed Assignment of contract, not sure why is she asking me that, but I am assuming that if my buyer tries to negotiate the price down based on the inspection outcome, the sellers attorney would want to negotiate my fees down to cover some of the cost of repiars of the either the septic, oil tank, termite, structure and well water test.

Secondly while the sellers are legally obligated to close, the sellers may walk off if they do not agree with the fees I am getting.

As long a everyone knows your role in a transaction, that you're a successful & confident real estate investor, & you know what you're doing, you shouldn't have trouble, esp. if you find the right investor-friendly pros. As long as they know you have the funds to close & are comfy with you, it won't be a big deal. Sometimes, when I explain what I do, I use the term "my partners & I", or "myself, my company, or my partner" want to buy their house. That way, it clears up any confusion that might happen going forward & they won't care who closes as long as their home is sold. The attny(s) need the assignment contract for closing. It's almost like the bread & butter of the contract, that transfers the purchase to the new buyer.

The 1st deal I had, I did it long distance in another state & never went to the closing table. No, the buyer didn't feel comfortable giving an assign fee up front & your lucky if you find a buy who's ok with it. It might happen when you're doing multiple deals with the same buyer. They get used to you & will be ok with doing it, probably with a stipulation the check cannot be cashed until closing or something like that. I try to get the buy to do an earnest deposit that's equal to what I had to pay or a little more & collect it at assign contract signing. They may only wanna do it at closing. It's fine, but if you can get it early, it's 1 way to know you're buyer is real. I think it depends on the buyer, too. Is the deposit a part of your assign fee, or their earnest money?

Thanks for detailed info.
The deposit I am asking is part of assignment fee.

By the way it is the seller's attorney who wants the copy of the assignmen contract
I also found from the seller's attorney that they do not have a septic tank but a cesspool. This is now a matter of concern. Cesspools are archaic to have in homes and prone to sinking. This house was built in early 1900's. So if the septic tanks needs to be put , it will cost more and the purchase price of the house will have to come down.

The seller hinted that if that happens, I will have to reduce my fees and she will go lower only upto a certain price.

This deal project seems to be a challenes galore and since this is my first deal it is becoming more challenging as I am still learning the ropes and not sure of the uncertainities that are to come.

Did you do comps on the area on simular homes ? I am curious as to why the price has to drop if the numbers are good.
2- didnt you have a contractor give you repair estimates so you could figure out your offer and so you know if there is enough meat on the bone for the end buyer to pocket a decent profit after repairs?
I dont see any numbers posted so we really dont know how to help you if we can.
I hope you have enough time in your contract for your end buyer to get the inspection done before your obligated to close on the deal.
good luck and keep us up to date on your deal.
Richie

Hi Richie,
The comps were done, but repairs of septic tank was not taken into account.
Seller and I had verbally agreed reduce the the septic tank replacement cost if it needed one.
But before the attorney review the sellers attorney informed me the house might have a cesspool.
In New Jersey, you cannot sell a house with cess pool, which means removing the cesspool and putting in a new tank, the coat of which is substantial.

Yes be the end buyer has 21 days, after attorney review to conduct an inspection. So currently the deal us under attorney review.

Bimal

Bimal good luck hope it closes fast and the seller attorney doesn't try anything funny

Whatever happens, happens for a reason.
This deal has provided me with ample learning. So at the end of it I will still be a winner.

But thanks for stopping by and your kind words. Well I am still suspecting the seller's attorney will pull one out from her sleeves.

I will post updates, should happen in next few days, if not tomorrow.