HELP!?!? How to assign a TREC 1-4 Family Contract?

Question

I have a quick question. I am looking to put a property under contract with a Realtor and this is my first time ever putting a property on my contract. All the numbers for the property and comps says it’s a good deal but my only problem is the realtor wants to use the TREC 20-12 1-4 family contract. I put clauses in the special provisions giving me and out of the contract; the only problem is I don’t know how to assign the contract. I have a standard “Agreement to Assign Contract” but I keep hearing mixed opinions stating that the TREC contract is not assignable. I have a few buyers lined up and could make a pretty good profit; I just don’t know how to assign the TREC contract to the end buyer. Please help, Thanks

Adam Wright · Answer

Drew Shirley wrote about this on his blog.   Do a google search on Lawyers guide to TREC contracts with his name.   It is just one opinion but it is a good concise explanation of what one can do.  He also gives his opinion on assigning contracts.

I do not know Drew nor have I done business with him but I find his writings helpful.

Guy Gimenez · Answer

@Adam Kibwe

I will PM you shortly with details.

If the property is listed in the MLS, I would caution you to check your numbers again. This is where new investors get themselves into trouble. MLS properties are seldom investment grade unless it's buy/hold and waiting for more appreciation...in which case it's not really an investment as much as it is speculation.

Adam Kibwe · Answer

It doesn't, I just didn't know if there was something special about TREC contracts that prohibited them from being reassigned. Thanks

Wayne Brooks · Answer

Read the contract.  It either prohibits assigning, or it doesn't.

Tuan Le · Answer

I am interested to know how this is possible?

Adam Kibwe · Answer

The property is the Realtors grandfather's and it is not listed on MLS. It's a FSBO in which the Realtor is conducting for his grand father. I checked the MLS with my Realtor friend and the ARV for similar properties in the area are going for 85-95k and he's willing to let it go for 24, and my contractor estimated around 10-20k worth of repair cost.

Paul Ewing · Answer

You really have to search for the deals, but they sometimes pop up but I haven't seen any that I would think are wholesale potential.  Some fix and flips and fix and holds but especially in the hot metro markets prices are close to retail and evidently selling fast at that.

HELP!?!? How to assign a TREC 1-4 Family Contract?

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