are you assigning the p&s or the option?

Question

When assigning, are you assigning the P&S contract or the option contract?

Herb V. · Answer

Then your flex-option must be non-exclusive, change that if you wish and yes the PSA carries more clout. Herbster

Andrew Massaro · Answer

My flex option is non-binding to the seller.  They are free at any time to sell to someone else, should they find a buyer before me.  I use it only if the deal is iffy.  If I'm sure I can flip it, I get the PSA signed...

Christopher Davis · Answer

If you paid consideration ( $$$$$$$) to the seller for the option then you have an enforcable contract

Herb V. · Answer

I consider the option as binding especially when a memo. of option is recorded. Sometimes I even release my option back to the seller for my fee. Herbster

Craig Grella · Answer

the optionee (buyer) does not have to exercise the option. They can simply walk away.

Andrew Massaro · Answer

Both PSA's and options are typically assignable, unless otherwise noted.  However, most assignments are with a PSA, as an option is non-binding.  If you have an option in place, and have a buyer, cancel the option and get a PSA signed.  Then the seller can't get out of the deal as long as the PSA is valid.

Brian H. · Answer

JO,

Here's a good thread to refer to.

http://www.biggerpockets.com/forums/93/topics/45892-contracts-im-using-for-wholesaling?page=1

Below is a response from Jaremy Moritz from the above thread taking about assigning the S&P and not the option.

I hope that helps

are you assigning the p&s or the option?

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