Assignment Agreement or 2 Paurchase Agreements?

[Matt Myers]

Hi all, first post. I've read about an investor who uses a purchase agreement between him and the seller with low earnest money. He then uses a purchase agreement between him and the buyer with higher earnest money and he instructs his title company that it is actually an assignment of contract and not a double close. Is this possible?

It seems to me that with 2 separate purchase agreements he would have to close on both agreements and take title from seller then transfer title to buyer. I like the idea of the earnest money spread, but I'd think that much less could go wrong with buyer if you just use an assignment agreement. Will buyers usually give you a portion of your fee at the signing of the assignment agreement? Doesn't some consideration need to be made to make the agreement enforceable?

[Will Barnard]

Michael and James are both right. Having two contracts would require 2 closings and not an assignment of contract. An assigment of contract is "selling" your existing contract to another buyer for a fee.