Title company says no assignments

[Antonio Bodley]

I was looking for a title company in my area that will allow investors to get paid assignment fees. I only heard of one title company from the local REIA that I thought I would allow assignments. I called them up and asked about this. They said no assigments. Do you know of any other title companies that will allow assignments at closings in any state? I need an investor friendly title company in Alabama that will allow this to happen.

[Bill Gulley]

Defining what you are calling an assignment fee might help. How you structure the deal and what rights you convey and exactly what it is you are charging for as a fee will determine if your assignment is a legal transaction. Title companies do not make law, nor may they dictate contracts that have a legal purpose. While they may say they will not insure a transaction based on theoir policies, that is not to say that you are restricted. If a lender will allow a borrower to purchase under your contract, the bank might close the deal. I really think it is the way you are presenting your deal or how you structure the transaction that a title company may have a problem with your deal. You can certainly step out of the way and have a fee paid outside of any real estate closing and have a "clean contract" made between a seller and another buyer. Take cae to address tax issues with such assignments and watch out for real estate licensure requirements. Selling options is not against the law so long as you dot the "i"s and cross the "t"s.