Assigning Real Estate Contracts: Everything Buyers and Sellers Need to Know | Summary and Q&A

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November 2, 2022
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The Real Estate Lawyer
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Assigning Real Estate Contracts: Everything Buyers and Sellers Need to Know

TL;DR

Contract assignments involve transferring the rights and responsibilities of a real estate contract from one party to another with written consent.

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Key Insights

  • πŸ₯³ Assigning a real estate contract requires obtaining the written consent of all parties involved.
  • πŸ—―οΈ Including "and/or assigns" in a contract does not automatically grant the right to assign the contract without consent.
  • πŸš• Tax deferred exchanges can be beneficial for sellers, and cooperation from the buyer is typically required.
  • ❓ The death of a seller does not automatically void the contract, and the agreement remains binding on the heirs.

Transcript

get down welcome back to the North Carolina real estate show I'm your host Tiffany Weber I am an attorney at Thomas and Weber in Mooresville North Carolina and I'm joined today by another attorney at our office Aaron weatherman hello everyone so assignment that is when someone other than the party that was contracted with is going to perform under ... Read More

Questions & Answers

Q: What is a contract assignment in real estate?

A contract assignment is when one party transfers the rights and obligations of a real estate contract to another party with written consent.

Q: Do I still need consent from the seller if my contract includes the phrase "buyer's name and/or assigns"?

Yes, even if the contract includes this phrase, it is still necessary to obtain the written consent of the seller to assign the contract.

Q: What is a tax deferred exchange?

A tax deferred exchange, also known as a 1031 exchange, allows a seller to sell an investment property and reinvest the proceeds in another property while deferring capital gains taxes.

Q: Why would a seller need to involve a qualified intermediary in a tax deferred exchange?

A qualified intermediary takes possession of the funds from the sale and uses them to purchase a new investment property within a specific timeframe, thus deferring the capital gains taxes.

Summary & Key Takeaways

  • Contract assignments often occur when a buyer identifies a property for a good price and intends to sell it to another buyer at a higher price.

  • The contract typically states that the assignment requires the written consent of all parties involved, except in the case of a tax deferred exchange.

  • Adding "and/or assigns" in the contract does not automatically grant the right to assign the contract without obtaining consent from the other party.

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