Does Seller(A) have to sign the Assignment contract too?? Wholesaling Help*

Richmond, Virginia
General Real Estate Investing
2yFollow

Does Seller(A) have to sign the Assignment contract too?? Wholesaling Help*

Ciera Yorty
Member since 2024 · 3 posts · 1 vote

   I've been learning everything I can about wholesaling and am stuck on this. I'm aware that both the seller and I need to sign the purchase agreement. But Is it important for them to also sign the Assignment sheet between myself and the End Buyer? I've only heard this recently in a book I read, and by a closing agent from a title company. I wouldn't want to get turned down by escrow day of closing, for not having the seller's signature on the assignment. Maybe it's about how transparent you want to be?

0Reply
102 views

Most Popular Reply

Kenneth Germann
Member since 2024 · 45 posts · 16 votes
2y

The type of contracts you do are going to vary state to state. Here are the contract types in wholesaling:

Assignment Contract: In an assignment contract you have a seller contract that is between you and the seller. This is an AB contract. You have an assignment contract that is B to C. B is you the buyer who is selling the property to the buyer. There is only one closing fee.

Simo Closing: You have two seller contracts. A to B on one contract. B to C on the other seller contract. Title transfers in minutes. There is one closing fee.

Double Closings: You have two seller contracts. A to B on one contract. B to C on the other seller contract. There are two closings. 

You want to pick the contract types you use based on the laws of the states you are doing business in. Easiest way to figure out what the laws are is to talk to a title company that is a law firm in that state. 


In florida, I can do simo or sumultaneous closings. In north carolina and nevada, simo closings are illegal. I need to do an assignment contract or double close. In some states buyers are willing to pay the double closing costs on a double close. It depends on how lucrative the deal is. 

does this help?
 

1Reply
See this reply in the discussion

5 Replies

Jump to latestLatest
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    2y

    Read the purchase agreement. Assignability should be addressed in some way.

    It the contract expressly assignable without the seller's consent? Is the buyer identified as XYZ and/or assigns? Or does an assignment expressly require written consent of the seller? Is there language included about "permitted" assigns? Does the contract expressly forbid assignment?

    The answer should be in there.

    Gimer Law516 Reviews
    WebsiteView Page
    1Reply
  • Kenneth Germann
    Member since 2024 · 45 posts · 16 votes
    2y

    The type of contracts you do are going to vary state to state. Here are the contract types in wholesaling:

    Assignment Contract: In an assignment contract you have a seller contract that is between you and the seller. This is an AB contract. You have an assignment contract that is B to C. B is you the buyer who is selling the property to the buyer. There is only one closing fee.

    Simo Closing: You have two seller contracts. A to B on one contract. B to C on the other seller contract. Title transfers in minutes. There is one closing fee.

    Double Closings: You have two seller contracts. A to B on one contract. B to C on the other seller contract. There are two closings. 

    You want to pick the contract types you use based on the laws of the states you are doing business in. Easiest way to figure out what the laws are is to talk to a title company that is a law firm in that state. 


    In florida, I can do simo or sumultaneous closings. In north carolina and nevada, simo closings are illegal. I need to do an assignment contract or double close. In some states buyers are willing to pay the double closing costs on a double close. It depends on how lucrative the deal is. 

    does this help?
     

    1Reply
  • Jesse LeBlanc
    Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
    2y

    Good Afternoon @Ciera Yorty Congrats on taking action first of all!

    Does the seller sign your assignment, ABSOLUTELY NOT.  Your seller will only sign your AB contract where you're the buyer.  The end buyer signs your assignment of contract BUT the end buyer needs to see your original contract BEFORE they sign (if they're smart) because they need to know what they are ASSUMING (taking over when signing, meaning they step in as the buyer and whatever is on your original contract they are now legally obligated to do).

    1Reply
  • Ciera Yorty
    OP
    Member since 2024 · 3 posts · 1 vote
    2y

    Yes in the Purchase agreement, I have "Seller agrees and acknowledges that this Contract is fully
    assignable by Buyer." and "This offer is contingent upon the approval of a partner up until closing date."  After they agree and sign I guess there isn't any reason for an assignment signature as well. 

    0Reply
  • Kenneth Germann
    Member since 2024 · 45 posts · 16 votes
    2y
    Quote from @Kenneth Germann:

    The type of contracts you do are going to vary state to state. Here are the contract types in wholesaling:

    Assignment Contract: In an assignment contract you have a seller contract that is between you and the seller. This is an AB contract. You have an assignment contract that is B to C. B is you the buyer who is selling the property to the buyer. There is only one closing fee.

    You have two contracts. A seller contract with the the seller. You are the buyer. 

    You have an assignment contract where you become the seller. You are assigning the right to sell the property to the buyer. 

    The buyer pays the closing costs typically, your assignment fee, the price of the house which is the ARV*75% typically. The buyer pays. The money goes into an escrow account with the title company. The title company pays the seller, pays you your assignment fee. The buyer gets the title to the property.

    Simo Closing: You have two seller contracts. A to B on one contract. B to C on the other seller contract. Title transfers in minutes. There is one closing fee.

    In a SIMO closing. You have two seller contracts. an A to B seller contract from the seller to you as the buyer of the property. You have a B to C seller contract. You are are the seller and the buyer is "C" in this case who is buying the property. There is only one closing. The buyer pays the title company the total cost of the property (ARV*75% (this can fluctuate from 70 to 80% depending on market conditions). The money goes into an escrow account. The title company pays the seller, pays you your wholesalers fee, and gets paid the title fees from the buyer typically. The buyer gets the title.

    Double Closings: You have two seller contracts. A to B on one contract. B to C on the other seller contract. There are two closings. There is a sellers contract (FBARAR). The first contract is between you and the seller (A to B). You get the title for 5  

    In a double closing there is two sellers contracts (no assignment contract). 

    You want to pick the contract types you use based on the laws of the states you are doing business in. Easiest way to figure out what the laws are is to talk to a title company that is a law firm in that state.

    Its important that you understand the laws in each state when it comes to closings...


    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free