can you assign a contract that is subject to financing approval?

5 Replies

Hello BP community. I just want to ask about your insights for this matter. can you assign a contract to a cash buyer if the contract offer was subject to financing approval? Does it have to be in cash offer in the first place? I would appreciate all your comments on this.



Absolutely, yes, you can assign the contract to a cash buyer.  

The financing contingency is a clause to protect the buyer in case they needed financing and can not get approval.  Since the buyer has cash and doesn't need the financing then the financing contingency doesn't apply . 


@ craig wilcox thank for your comment on this. So even when the lender provide a proof of funds it will not matter to them if the contract was assigned to a cash buyer that wont use them for the purchase? Im asking this because the realtor is worried about it..


Is the lender a bank, hard money lender, or private lender?  It is possible that you could hurt your relationship with the lender but there is no reason that the contract can not be assigned.  

If you request the lender to do work without eventually closing on a loan than they will likely stop helping you.

Does that answer your question?


I see.  You could hurt your relationship with the private money company by not closing the loan.  I would suggest you talk to them, let them know you decided to wholesale the contract, AND offer them a fee for the work they did to prepare the proof of funds letter.  If they get some reimbursement for their time, they should be more understanding.

Good luck!