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Posted about 12 years ago

Never put "and or assigns" on a contract with a bank

 In a previous post I mentioned a deal I was bidding on that was bank owned. Long story short, after I put "and or assigns" on my second offer I received a "don't call us, we'll call you" response from the agent. The property was recently put up for auction so I'm guessing they aren't going to call me back anytime soon. After doing some research on dealing with bank owned properties I found out that banks don't like to see "and or assigns" on a contract because they know you're trying to make money off of them and it will kill the deal. I had put it on there originally to give myself an out if I needed it but I should have just stayed with the transactional funding plan I had to begin with and left out the assigns clause. Lesson learned. 


Comments (2)

  1. I've read that as well but most of the books I've read say you should put that clause in the contract. I would like to read it in a legal text to get a definitive answer on the topic. Let me know if you find anything about it. Thanks!


  2. My understanding is that any contract is assumed assignable, unless otherwise stated.