Assignable real estate contracts?

[Big_Hitter]

Trying to work a deal on some dirt I've had for about 17 years in the PNW.

Got an offer yesterday and the buyer wants the contract to be "assignable".

Does that mean the buyer can flip the property during his "feasibility" period to another buyer?

If so, I don't like that.

 

[calmloki]

Just guessing, but I'd say you are reading it correctly. Why the problem though? As long as you are getting what you want it shouldn't matter if your "buyer" makes money by having the right contact to flip it too. We lend to flippers often and make a certain amount of interest - the flippers tend to make a bucket full of cash on their flips, but we don't want to do their work and are happy with what we get.

 

[pb4uski]

Yes, but he probably could even if it was silent as to assignability but could not if the contract specifically prohibited it. When I was working we had a contract to buy a particularly property and someone came along who wanted it more and made us a better offer so we sold our contractual right to buy to the other party. They essentially stepped into our shoes in exchange for $x so we never took title and they closed on the contract so their purchase cost was the contract price plus $x.

Why don't you like it? If they closed and then flipped it the same day what difference would it make other than your wishing you had the relationship with the ultimate owner so you could capture those extra $$$$? You could always ask why they want it to be assignable.

 

[Big_Hitter]

yeah I guess I'm overreacting - this is a cash deal so I guess I shouldn't care if it's assigned - I'm going to ask for more earnest money though

 

[Big_Hitter]

You could always ask why they want it to be assignable.

thanks, good question, I'll ask my agent (who wants me to capitulate since the property has been on the market for a while but I don't need to sell it and hey, an extra $20K is $20K)

 

[Lakewood90712]

The only downside I can imagine , if something went terribly sideways and a civil suit by any party occurred, it would be a huge mess with endless "cross-complaints".

Ask for a large , non-refundable earnest money payment.

When I sold the property to settle my dad's estate, it was one of those deals. If I had to do it over, I would not have agreed , but I am a worrier.

 

[Big_Hitter]

apparently the buyers are working with a builder who has a "prepackaged" deal so I think they want to bundle the real estate with the house for one note?


I'm fine with it.