How to assign contract if offer from buyer is received in CAR form?

Question

I have a property under contract and I've received an offer from a buyer via C.A.R form       (California Association of Realtors)

How would I handle the assignment? Do I just send the buyer the assignment of contract and ignore the C.A.R contract or do I sign both the C.A.R contract and the assignment of contract as well?

Thank you for your help.

Luis

Ned Carey · Answer

Luis Ontiveros, I do not know the specific wording of the CAR form or your first contract. However in general when you are assigning a contract you are not selling the real estate you are selling the contract.

If you double close and take ownership of the property; then the CAR contract or other purchase and sale contract, would be appropriate for your agreement with your second buyer.

If you are not planning on closing on the property yourself, and just want your end buyer to take your place in the contract,  then assigning your original contract is appropriate. In this situation you are as singing (or selling) your original contract. The CAR form probably would not be appropriate.

In either case you should make it clear in your agreement with the second buyer that you are not responsible if the original seller doesn't close.

I am not an attorney so do not consider this legal advice for your specific situation. It is just my laypersons understanding of contract law.

Ned Carey

Matt Horwitz · Answer

If you have a contract with the seller, then you are assigning that contract to the buyer.  The contract that buyer sent is just an offer and you do not need to worry about it - given that I've read your post correctly.

Alternatively, you could take an upfront fee from the buyer ("finder's fee") and then have the seller execute his contract too.