Real Estate Agent · Sarasota, FL · Member since 2016 · 91 posts · 26 votes
So, I'm now on my 3rd wholesale deal and it's been a great learning experience and adventure that I'm enjoying. I've searched the forums but don't have time for hours of searching.
My question for the wholesalers out there with experience do your seller's ever push back on paying the doc stamps on the assignment price vs what they put under contract with me??? I WOULD if I was the seller...
I'm thinking going forward I need to add something into my assignment contract that addresses this. "The Assignee is responsible for the difference in DOC STAMPS ON THE DEED from Assignors purchase price vs Assigned purchase price"
Any feedback or experience with this would be great. The dollar amount is nominal but it's still money.
Example, seller agrees to a $100,000 sales price ($100k/100*.70 = $700 in doc stamps)
I assign for $110,000 ($110k/100*.70= $770 in doc stamps)
seller now pays an additional $70 for something they would have never thought to ask. If this comes up on my closing on Friday I would ask the title company to change the hud and take this out of our assignment fee as it's nominal but I'm going to address this on my contracts going forward.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
Well, that should not be happening. The sale is at the purchase price on the purchase agreement contract. The assignment fee goes on buyer side, as an additional cost/fee, it is Not part of the sales price. It would be the same if the buyer were actually paying a real estate agent fee themselves.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
Well, that should not be happening. The sale is at the purchase price on the purchase agreement contract. The assignment fee goes on buyer side, as an additional cost/fee, it is Not part of the sales price. It would be the same if the buyer were actually paying a real estate agent fee themselves.
Well, that should not be happening. The sale is at the purchase price on the purchase agreement contract. The assignment fee goes on buyer side, as an additional cost/fee, it is Not part of the sales price. It would be the same if the buyer were actually paying a real estate agent fee themselves.
Wayne, amazing that I'm working with my 2nd title company that's done it this way (the way I mentioned). You brought up a great point and I even reread my assignment contract and it states the assignee is paying the assignment fee + assuming all terms & conditions of my original contract!
I just emailed the title company and will let you know what they say.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
10y
I have never wholesaled a property, but I have bought them. And I agree with @Wayne Brooks, the purchase price in your example is still $100k even after you assign it. The $10k assignment fee is just that - a fee.
As a side note, property taxes should also be based off the $100k purchase price, not the $110k price that includes the assignment fee. Not that you, as the wholesaler, have to pay property taxes, but it's just something to know in case your buyer asks or you want to point it out to them.
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
@Kyle J. Just so you know, property taxes here are not based on/affected by the subject property purchase price. They are purely off of comp sales, an "appraisal" value determined by the Property Appraiser dept.
Real Estate Agent · Sarasota, FL · Member since 2016 · 91 posts · 26 votes
10y
Just to update the thread and close it out. The title company a larger title company too, said they had never done an assignment before and they did correct the HUD to show the Assignment fees correctly to the buyers side and the DOC stamps were calculated on the original sales price!