As a seller, what risk do I have if i allow a person (assignor) to assign to someone else? More likely to have lawsuits, etc?
No risk if the contract provides something similar to this:
An assignment of this Agreement does not release the buyer from its responsibility for performance of its duties under the Agreement unless the seller so agrees in writing.
Keep buyer1 obligated to close in case buyer2 disappears.
Agreed. Also, your "buyer" is likely not a buyer at all, but a "wholesaler" who does not have tha ability to buy even if he wanted to, he just got your property under contract to assign it to someone else for more money. There are legitimate reasons for ans assignment, as in into a joint llc, related entity, etc.
I dont think i have ever seen a wholesaler fill out a sellers disclosure.. and in our state if a buyer does not get a sellers disclosure from someone.. they can cancel and get their EM refunded right up to the minute the deal is suppose to close or settle or disperse or whatever you call it in your jurisdictions.. its a state law.
its funny in the resi side of this all agents and buyers agents first thing out of their mouth is sellers disclosure .
@Jay Hinrichs If middleman actually takes title, the right of buyer2 to rescind the deal based upon the failure to provide a disclosure would typically expire at their settlement. If middleman assigns that would include whatever the seller provided.
Oh, around here seller disclaimer statements are quite popular when that is an option.
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