Updated over 15 years ago on . Most recent reply
Assigning contracts -- financing issues? Need a solution quick!
What happens when you want to assign a contract to a buyer/investor who will be buying the house in different terms than the ones you agreed to the seller with?
For instance: If I get a house under contract for 100K cash but I want to assign the contract to someone who wants to pay 50K cash, 50K hard money, how does this work? Is it up to the new buyer to determine with the seller how they will proceed? Either way the seller gets their money so I don't see it being much of an issue.
But as a rule, when I'm submitting offers, what do I "check" for the Financing paragraph on the first page of the contract? Just leave it blank or use 100% financing, 100% cash? My online forms require me to enter the cash portion and the financing portion, and adds the two together that is the sales price. and if I leave both (cash portion & financed) blank and just fill in the sales price, it automatically assumes sales price will be completely financed. I've left the financing paragraph underneath the sales price blank for my first few offers. What should I do instead?
Please advise! Thanks!
Most Popular Reply
I highly recommend your end buyers to be all-cash.
If your contract stipulates all cash, and you truely are "assigning" the contract, your end buyer must adhere to the trems of the OG contract.