Assignment of Contract

8 Replies

does anybody know if it is legal in the state of Connecticut to reassign a contract and use the language "buyer reserves the right to reassign contract to LLC of choice" and also if a person has a property under contract can the buyer advertise the property on craigslist or Postlet or anywhere?

In the state of CT, any contract that doesn't explicitly specify that it is not assignable, is assignable. With that said, most of your investors (and their attorneys) will be much more comfortable if the contract has some sort of language specifically stating that it can be assigned.

Not sure about rules re: advertising. Would suggest that marketing the specific address online might not be the best route for you to take regardless of the laws.

I have a signed purchase contract and in there is specifically states buyer has the right to reassign contract to LLC of choice. I've had this property under signed contract since November 3 and today I get a message from the sellers attorney saying that the contract is fraudulent

Yes, seek the advice of an attorney.  Sometimes in contracts, less is better.   If Travis is right, you didn't even have to insert that language.  And at most, all you probably had to do was have the clause "and/or assigns" after your name in the contract.

Your line there is shining light on the assignment issue and making it sound "suspicious", in my opinion.

There are at least two things to be considered on the topic of assignments: the language in the contract itself, and the type of real estate transaction you are dealing with. There are some real estate transactions that are not easily assignable. For example, when court approval is given for a probate sale, the buyer is named in the court documents. 

A good lawyer is always a necessary member of your team. 

This deal may or may not play out. 

However, I'm going to a million dollar tip that one of my other high net worth buddies shared years ago:

Hire you enemy!

Spend some money with this attorney for him/her to draft language in your agreement that is acceptable to you and passes the attorney sniff test. Then, work on how to sell it.

Who knows, by turning lemons into lemonade you might make many times more money in the long run.