Hello BP Community:
I need some clarity as to what all goes into an assignment of contract and a Purchase-Sale contract. Section by section.
Also any personal experiences on strategies used during closing would be great.
So far I've learned about:
What it means to sell "AS-IS" therefore stating the cost of repairs would be at the buyer's discretion.
Also, including the cost of transfer on the seller and buyer, respectively (especially with PA's transfer tax law).
I also understand getting both agreements notarized is wise.
If there's anything else that I should be aware of, please let me know.
Thank you in advance for all your insights!
Is this for wholesaling specifically? Assuming you intend to wholesale, an Assignment of Contract is pretty straight forward. It specifies the parties involved (you and the end buyer), and how much you will receive at closing. Then the Assignment of Sale Contract is delivered to the title company together with the Purchase Contract.
I am not sure what Purchase Contract you use, but keep it simple, no more than 2 pages. Make sure you include in the Purchase Contract the clause that it can be assigned.
As far as "As Is", I also clarify to my end buyer (on the contract) - "Seller (which is you) has never resided in the property, therefore cannot make any representations. Property to be sold "as is" and buyer can perform his/her due diligence."
You don't have to get the agreements notarized, but definitely deliver them to the title company as a 3rd party holder and witness.
I do wholesaling in Philadelphia. I ask the title company for a proforma closing statement showing all costs and title fees way before the closing, so I know how to proceed. As far as the PA transfer tax law, talk to a tax accountant or CPA. It depends on your situation (how you are incorporated.)