wholesaling assignment contract pdf

Wholesale Real Estate Contract - Free Template Downloads

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The wholesale real estate contract is more simple that the standard purchase and sale agreement. Since wholesale deals are primarily built around the buyer paying all cash, the need for contingencies aren't necessary.

Real estate wholesaling is a two-part transaction. First the contract is executed with the seller. Second, the assignment agreement is executed with the buyer. Both of these contracts are required.

How to Write a Real Estate Wholesale Contract

When you're learning how to write a real estate wholesale contract, it can be intimidating. Executing an agreement when purchasing the property solidifies the deal. The key is to remember that there are only 5 elements that make a contract enforceable. Be sure that your contracts contain all of the essential components.

Names of buyer and seller must be on the contract
Purchase Price
Consideration / Earnest Money Deposit
Description of Property
Signed by both parties

Since a real estate wholesale transaction is relatively cut and dry deal, learning how to write a contract will be easy.

You can use any Standard Purchase and Sale Agreement for Real Estate if you choose, or you can simplify things for your seller and use an "All Cash, As Is" Contract.

It's convenient to have contract template on hand. Just fill in the blanks and ask for signatures. Additioanlly, it's helpful to be familiar with every sentence that's in your contract.

As you build your real estate wholesaling business, you can add or remove clauses in your contracts. If they don't fit your business model get rid of them. Furthermore, always consult with an attorney for the best legal advice when it comes to contracts.

As a courtesy, you can download this free Wholesale Real Estate Contract Template and use it in your business. Full Disclosure: Property M.O.B. is not an attorney and isn't offering legal advice. Any contracts on this site are offered as a courtesy only and should be reviewed by an attorney in your state.

Wholesale Real Estate Assignment Contract

There are a few ways to sell the property to a new buyer. The easiest way is to complete a simple Assignment Contract. This simply states that your interest as the buyer in a contract is being assigned to a new person, for a higher price.

Once you find a buyer for your contract , it's easy to assign the contract to another buyer. Don't be intimidated by the use of contracts. The templates written here are written in simple terms and can be downloaded for free.

The assignment fee is collected at the time of contract, or you can get paid at closing.

Download this free Wholesale Real Estate Assignment Contract and use it in your business. Full Disclosure: Property M.O.B. is not an attorney and isn't offering legal advice.

Wholesale Real Estate Contract PDF

The easiest way to be prepared to sign a deal with a seller is to have a wholesale real estate contract in PDF format. That way you can fill out the form using your tablet or smart phone on the fly. Once you get "fancy" you can have a digital signature subscription on your tablet and request digital signs.

Download the free contracts that we offer here so you have something when you go to your appointment. Take the time to review it so you know exactly what it says.

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2 comments on “Wholesale Real Estate Contract - Free Template Downloads”

Thank you for the info you have given. It will help me out alot as I'm just getting started.

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Wholesaling Real Estate Contracts [Template Downloads]

If you're a real estate wholesaler, you understand the importance of having the right contracts in your arsenal.

This comprehensive guide is designed to help you navigate the world of wholesaling real estate contracts. From understanding the role of wholesalers to successfully closing deals, this guide will provide you with the insights and knowledge you need to thrive in this exciting aspect of real estate investing.

We’ll also give you some wholesaling real estate contract templates you can download right away!

Understanding Wholesale Real Estate Contracts

Real estate wholesaling is a strategy where you secure exclusive buying rights from a seller without needing a real estate license. You then flip that contract (not the property) to a cash buyer for an assignment fee.

Of course, it’s important to understand the various types of wholesale contracts and the legal aspects involved to facilitate successful transactions.

The Wholesaling Real Estate Contracts Lifecycle

If you’re just getting started, it can be a little confusing when to do what and what to do when… Here's a breakdown from Tyler Austin of the entire contract lifecycle when you’re wholesaling properties.

Types of Wholesaling Contracts

Wholesalers require two key types of contracts, purchase agreements and assignment contracts, to secure deals and assign them to investors. A purchase agreement, also known as a Real Estate Purchase and Sale Agreement, is a contract that outlines the terms and conditions of the real estate transaction, guaranteeing your right to buy or sell the property to someone else. Being cognizant of any clauses that may prohibit assignment is crucial, as it could impact your capacity to wholesale the property.

An assignment contract, on the other hand, allows you to sell your buying rights to another buyer without actually purchasing the property yourself. This is the basis of a wholesale real estate assignment, where wholesalers connect sellers and buyers, making a profit from the assignment fee without owning the property. After signing the original purchase agreement, the next step involves ensuring your contractual rights are assigned to another investor. You can do this through an Assignment of Real Estate Purchase and Sale Agreement.

Disclaimer: These templates are meant to just be a starting place for your wholesaling real estate contracts. Please consult with a lawyer to customize the templates so that they’re legally binding for your local jurisdiction.

Legal Aspects

Legally binding contracts are the backbone of any successful wholesale real estate business, and understanding the legal aspects of these contracts is crucial. For instance, awareness of the rules and regulations applicable to the state where the property is located is vital. Contingency clauses are another vital aspect of wholesale real estate contracts, allowing a party to back out of the agreement without negative consequences if certain conditions aren’t met.

Restatement Second of Contracts 317 states that assignments are generally allowable within contracts. Unless the contract itself prohibits it, an assignment is permissible. To ensure a smooth transaction and avoid potential legal issues, make sure to consult a real estate attorney and include all the necessary elements in your wholesale contract, such as the parties involved, property description, purchase price, and financing terms.

Key Components of a Wholesale Contract

A well-crafted wholesale real estate contract should contain several key components to ensure it is legally binding and effective. These essential elements include:

Clearly defining the parties involved
Providing a detailed and accurate property description
Outlining the agreed-upon purchase price
Specifying the financing terms

Incorporating these components into your contract equips you to navigate the complexities of wholesale real estate transactions and safeguard your interests.

Parties Involved

In a wholesale real estate contract, clear definition of the roles and responsibilities of the buyer, seller, and wholesaler is vital. The roles are as follows:

The buyer: the party purchasing the property from the wholesaler at a discounted price.
The seller: the original owner of the property who contracts with the wholesaler to sell the property at a negotiated price.
The wholesaler: plays a pivotal role in securing the contract from the seller and finding a suitable buyer to purchase the rights to the contract, ultimately making a profit from the difference in price.

In addition to the primary parties, a title company plays a significant role in wholesale real estate contracts. The title company is responsible for ensuring that the property title is legitimate and providing title insurance to protect both the buyer and seller during the transaction. Including all relevant parties in the contract helps to establish roles and responsibilities, minimize misunderstandings, and ensure a successful deal.

Property Description

A detailed property description is vital for a legally binding and efficient wholesale real estate contract. This description should include:

The property’s legal address
Property type
Specific features such as the number of bedrooms, bathrooms, and other relevant details

Providing a thorough property description enables all parties involved to understand the property’s condition and value, helping to prevent disagreements and ensure a smooth transaction.

In addition to the basic property details, it’s important to include any disclosed issues, such as structural problems, termite damage, or lead-based paint, that may affect the property’s value or require repairs. Outlining the property’s condition clearly allows for an accurate assessment of the potential profit margin and negotiation of a fair purchase price with the seller, thus setting the foundation for a successful wholesale deal.

Purchase Price and Financing Terms

Outlining the agreed-upon purchase price and financing terms is another integral component of a wholesale real estate contract. The contract should include:

The purchase price, which should be based on factors such as market value, necessary repairs, and the potential profit margin for the wholesaler.
The payment method, specifying how and when the payment will be made.
Any financing arrangements that both parties have agreed to.

When it comes to payment methods, wholesalers typically receive a deposit upon signing the Assignment of Real Estate Purchase and Sale Agreement, with the remaining profit paid at closing. However, it’s important to note that title companies may have restrictions on the types of payment they accept, such as not accepting credit cards, checks, or cash due to ‘good funds laws’. Clearly stating the purchase price and financing terms in your wholesale contract ensures a smooth transaction and safeguards your interests as a wholesaler.

Crafting a Wholesale Contract: Best Practices

Creating a solid wholesale real estate contract is essential for a successful deal, and there are several best practices to follow when crafting your agreement. These include:

Conducting due diligence to research properties, laws, and potential buyers.
Consulting an attorney for legal advice and contract customization.
Utilizing pre-made contract templates to streamline the process and ensure all necessary components are included.

Implementing these best practices can enhance your chances of closing deals and making profits in the competitive realm of wholesale real estate investing. In the following sections, we’ll delve deeper into each of these practices, providing you with valuable insights and tips to help you craft an effective wholesale contract that meets your needs and protects your interests.

Due Diligence

Conducting thorough research on properties, laws, and potential buyers is critical to ensuring a successful wholesale deal. This process, known as due diligence, involves:

Inspecting the property
Performing a records search
Seeking legal advice
Preparing any special disclosures

Conducting due diligence enables you to gain a better understanding of the property’s value, condition, and potential issues that may arise during the transaction.

Due diligence also extends to researching the local laws and regulations that govern wholesale real estate contracts in the jurisdiction where the property is located. This knowledge can help you ensure that your contract is legally binding and compliant with all applicable laws, reducing the risk of disputes or legal issues down the line.

Investing time in thorough due diligence can improve your success chances as a real estate investor in the fast-paced domain of wholesale real estate investing, attracting real estate investors with similar goals.

Consulting an Attorney

Seeking legal advice is another crucial best practice when crafting a wholesale real estate contract. A real estate attorney can review and customize your contract template to ensure it complies with all relevant laws and regulations, as well as protect your interests in the transaction. This can be particularly important when dealing with contract assignment restrictions or navigating complex financing arrangements.

In addition to providing legal guidance, an attorney can also help you:

Negotiate the terms of your contract, ensuring a fair and mutually beneficial agreement for all parties involved
Avoid costly mistakes
Safeguard your investment
Increase your chances of success in wholesaling real estate

Consulting an experienced real estate attorney can provide you with benefits that even a skilled real estate agent might not be able to offer.

Utilizing Templates

Leveraging pre-made contract templates can greatly streamline the contract creation process and ensure all necessary components are included in your wholesale real estate contract. The use of a template can save time and effort, while enabling the crafting of a legally binding and effective agreement that suits your needs and protects your interests.

There are several reliable sources for wholesale real estate contract templates, such as:

Real Estate Skills
FortuneBuilders
Property Mob
Rocket Mortgage

While templates can provide a solid foundation for your contract, it’s important to remember that customization may be necessary to comply with local laws and regulations, as well as to address the unique aspects of your specific deal. Utilizing templates and seeking legal advice for customization to suit your situation allows the creation of a robust wholesale real estate contract, setting you up for success.

Strategies for Success in Wholesaling Real Estate

To thrive in the competitive world of wholesaling real estate, it’s essential to implement effective strategies that help you source properties, build a strong buyers list, and generate a consistent flow of leads. Focusing on these core aspects of your business positions you well to close deals quickly and maximize your profits as a real estate wholesaler.

In the following sections, we’ll explore some proven methods for sourcing distressed properties , establishing a network of potential investors, and generating leads through various marketing channels. By implementing these strategies, you can propel your wholesaling business to new heights and achieve long-term success in the real estate industry.

Sourcing Distressed Properties

Identifying undervalued properties, such as distressed property, is a critical step in the wholesaling process, as it allows you to secure deals at a lower price and sell them at a higher margin to your end buyers. To source distressed properties, it’s essential to conduct thorough research and utilize various lead generation channels, such as online real estate marketplaces, foreclosure listings, and local real estate agents.

Networking is another key strategy for finding motivated sellers and distressed properties. By attending local real estate events, joining real estate clubs, and leveraging referrals, you can establish connections with property owners who may be interested in selling their properties at a discount. Honing your skills in sourcing distressed properties enhances your chances of securing profitable deals and expanding your wholesale real estate business.

Building a Buyers List

Establishing a network of potential investors and buyers is crucial to quickly assigning contracts and closing deals in the world of wholesaling real estate. To build a strong buyers list , you can start by:

Networking with local real estate agents
Attending real estate events
Joining real estate clubs in your area
Utilizing online platforms like Craigslist and social media groups to connect with potential cash buyers

When adding leads to your buyers list, make sure to collect essential information such as:

Their names
Contact details
Buying criteria
Funding sources

Cultivating a robust buyers list equips you better to quickly assign contracts, close deals, and generate consistent revenue from your wholesale real estate business.

Marketing and Lead Generation

Attracting motivated sellers and generating a steady flow of leads is essential for success in wholesaling real estate. Implementing marketing strategies like:

Direct mail
Social media
Display ads

can help you reach your target audience and establish your brand in the industry.

In addition to traditional marketing channels, leveraging content marketing can be a highly effective strategy for lead generation. By creating valuable and informative content, you can:

Attract motivated sellers
Establish yourself as an expert in the industry
Increase brand awareness, visibility, and reach
Ultimately drive more leads and deals for your wholesaling business.

Overcoming Challenges in Wholesale Real Estate

While wholesaling real estate can be a lucrative venture, it’s not without its challenges. Common obstacles include dealing with contract assignment restrictions and managing contingencies. By understanding these potential challenges and implementing the strategies discussed in this guide, you can navigate the complexities of wholesale real estate contracts and set yourself up for success in this thriving niche of the real estate market.

Contract Assignment Restrictions

One common challenge faced by wholesalers is the presence of contract assignment restrictions, which can limit your ability to assign contracts to other buyers. To overcome this obstacle, you can utilize a Standard Contract Assignment Addendum, which modifies the original contract to allow for assignment, or consider alternative strategies such as double closings.

Awareness of potential limitations on contract assignments and exploration of alternative strategies enable navigation through these challenges and assurance of a successful wholesale deal. Additionally, seeking legal advice from a real estate attorney can help you tailor your contract to comply with local laws and regulations, further reducing the risk of disputes or legal issues down the line.

Managing Contingencies

The inclusion of contingency clauses in your wholesale real estate contracts is vital for the protection of all parties involved and the assurance of a successful transaction. Common contingencies include:

Financing contingencies
Inspection contingencies
Sale contingencies
Title contingencies

These contingencies allow a party to back out of the agreement without negative consequences if certain conditions aren’t met.

Effective management of contingencies requires ensuring that all parties understand the terms of the contingency clause and establishing a realistic timeline to meet the conditions. Additionally, seeking legal advice from an attorney can help you craft contingency clauses that safeguard your interests and reduce the risk of disputes or legal issues down the road.

Final Thoughts

Mastering the art of wholesaling real estate contracts can unlock a world of opportunities for savvy investors. By understanding the fundamentals of wholesale contracts, crafting solid agreements, and implementing effective strategies for sourcing properties, building a buyers list, and generating leads, you’ll be well on your way to success in this thriving niche of the real estate market. With the knowledge and best practices shared in this comprehensive guide, you’re now equipped to overcome challenges, close deals, and reap the rewards of wholesale real estate investing.

Frequently Asked Questions

What type of contract is used for wholesale real estate.

A wholesale real estate contract is an Assignment of Real Estate Purchase and Sale Agreement which facilitates the transfer of rights from the wholesaler to the end buyer.

How do you assign a wholesaling contract to real estate?

To assign a wholesaling contract to real estate, you may need to include an assignment clause in the purchase agreement and draft an assignment of contract agreement. You also need to disclose to the seller that you have the authority to sell or assign the property, as stated by the clause "and/or assigns" next to your name in the contract. Finally, you must find a buyer and assign the contract assignment.

How does a wholesaler get paid?

The wholesaler gets paid when the buyer assumes legal rights of sales contract, or when the closing of the transaction is complete and funds and title of the property change hands.

How can I find distressed properties for my wholesale real estate business?

Do your research, network with industry professionals, attend local real estate events, and leverage online real estate marketplaces to find distressed properties for your wholesale real estate business.

What are some effective marketing strategies for attracting motivated sellers?

Target motivated sellers with direct mail, social media, display ads, and search ads to generate leads and make the most of your marketing efforts.

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Wholesaling made simple a comprehensive guide to assigning contracts.

Land Investing , Creative Financing, Making Offers, Mindset Training, Video Tutorials

REtipster does not provide legal advice. The information in this article can be impacted by many unique variables. Always consult with a qualified legal professional before taking action.

For several years, my real estate investing business followed a simple model that worked extremely well about 80% of the time.

I would find boatloads of motivated sellers , make deeply discounted offers to them, and when I found a seller willing to accept, I could buy their property outright and pay cash for it.

Once I owned a property, I could list it for sale (usually within 24 hours) and flip it for a MUCH higher price than I paid.

In a lot of cases, the process worked perfectly . Going through these motions, I could squeeze a lot of free equity out of each property. In the best-case scenario, I could move through the entire process in just a few weeks.

The Problem With a Cash Business

Even though this business model was pretty effective, I found it had some limitations.

It was surprisingly easy for me to find cheap properties and buy them free and clear with the cash I had, but the real challenge was getting these properties sold quickly .

After my first dozen deals, I learned that some properties were MUCH harder to sell than others, and I didn't always have the foresight to know which properties would take significantly longer to sell .

This was a big problem for two reasons:

1. I had a limited supply of cash to work with.

Even if I knew how to get every property on earth for 20% of market value, I didn't have enough money to buy them all . At some point, I had to be smart about which properties to pour my limited resources into.

2. It was hard to know when a property would sell.

One of the unpredictable elements of land investing is that some properties will sell quickly, and some will sit on the market for months on end, and the situation usually ISN'T obvious until you list the property for sale and see how the market responds.

Of course, a few indications can give off some warning signs, and some markets are known for selling faster than others, but when you're working in an unfamiliar territory (like I was most of the time), this can be a tough nut to crack.

RELATED: How to Find the Perfect Market for Flipping Vacant Land

Once I started pushing up against the limitations of my finite supply of cash AND my inability to predict the future, I started thinking to myself,

“There MUST be a better way to monetize these deals without tying up my cash!”

I kept seeing deal after deal hit my desk – and they were great deals – but they just weren't great enough to justify investing my own money .

Buying a property for 60% of market value is great for the average investor, but if I couldn't get a property for a next-to-nothing price tag, it just wasn't “risk-free” enough to tie up my limited funds!

Wholesaling Through Assignments

Around this time, I started exploring how to assign contracts (i.e. – wholesaling, arbitrage, etc.).

Rather than signing a purchase agreement and buying each property outright, I had heard other real estate investors talking about this ingenious way of signing a purchase agreement and selling that contract to another investor so that THEY could close on the deal – with me just acting as a middleman and collecting an assignment fee in the process.

In short, I would effectively be selling a piece of paper because that paper (i.e. – the purchase agreement) represented a TON of valuable real estate equity that would go to whoever closed on the deal and took ownership of the property.

In some ways, assigning a contract wasn't all that different from acting as a real estate agent because I would be wearing many of the same hats and doing some of the same things an agent would do for their client.

The difference was that I had a signed purchase agreement between myself and the seller, giving me an equitable interest in the property. I wasn't selling a property on behalf of someone else, I was selling a contract that entitled me to close on the deal and could be assigned to any other investor who wanted to jump into my shoes.

This contract was like a paper asset I could sell to a third party and get paid an “assignment fee” without owning the property myself.

Legal Disclaimer: In some states, this process of assigning a contract is considered synonymous with working as a real estate agent. Even though it's technically a different type of agreement, some jurisdictions don't distinguish between the two. If you decide to pursue this strategy, check with the laws in your area to make sure you aren't required to have a real estate license to complete this process. If a license is required, you don't want to attempt this without your real estate license.

This presented a few obvious benefits:

I didn't need to put up any of my own cash.
I didn't need to shoulder any liability as a property owner.
I didn't need to stress out if I couldn't find a buyer immediately (because once the purchase agreement expired, I was free to walk away from the deal).

As I became increasingly strapped for cash (all while the opportunities continued to pour in faster than I could handle), this whole “Assignment” business sounded like the PERFECT solution to my problem.

The Mechanics of Assigning a Contract

Now, the idea of assigning contracts (aka – “wholesaling”) always sounds great on paper – but let me tell you, I struggled for YEARS to understand the mechanics of how this process really worked.

I understood the “20,000-foot-high” concept of assignments, but when it came down to figuring out the real, nitty-gritty details (for example)…

What kind of Purchase Agreement was I supposed to use?
What kind of Assignment Agreement needed to be signed?
How was I supposed to get the deal closed?
Where could I find the right closing agent to work with me?
When would I get paid in the process?
What if the buyer went behind my back and talked to the seller?
What if I couldn't find a buyer before the original contract expired?

…I had heard so many different opinions from so many different people about how the process was supposed to work. All the advice I saw on the various real estate forums and blogs would constantly contradict each other, making it even harder for me to nail down the “correct” way to move through this process.

Since I struggled with it for a long time, I will save you a ton of hassle and confusion by laying it all out below.

The 4 Stages of Assigning Contracts

Assigning a contract is (in theory) a pretty simple concept.

When an investor (we'll call this the ‘middleman') finds a great real estate deal and signs a Purchase Agreement with the Seller, they have the option ( if their Purchase Agreement contains the right language ) to “assign” (aka – sell) this piece of paper to an outside investor.

When the wholesaler/middleman assigns the Purchase Agreement to the outside investor, they can do it with a simple, 1-page document called an Assignment Agreement . This document legally transfers the original buyer's rights (as written in the original Purchase Agreement) to the new buyer. It also releases the original buyer (i.e. – the “Assignor”) from any liability or obligation and substitutes the new buyer (“Assignee”) in their place.

Essentially, the outside investor is jumping into the shoes of the wholesaler and can purchase the property directly from the Seller, at the same price, at the same terms, with the same deadlines, exactly as the terms were stated in the original Purchase Agreement. The only difference is that it now applies to the new buyer (Assignee) instead of the original buyer (Assignor).

I always find that visual aids are helpful, so here's my best attempt at showing you another representation of how the process works:

Stage 1: Contract Signed between Wholesaler and Seller

Stage 2: Wholesaler Finds an Outside Investor to Buy Under the Terms of the Original Purchase Agreement

Stage 3: Wholesaler Assigns the Contract to the Outside Investor and Gets Paid a Deposit

Stage 4: Seller, Wholesaler, and Outside Investor Close. The Wholesaler is Paid the Balance of the Assignment Fee at Closing.

As you can see, the Wholesaler (Original Buyer or Assignor) is acting as the “middleman” (or middlewoman, in this case), getting paid in the form of an Assignment Fee from the Outside Investor (Assignee).

In the process I follow (which I'm about to explain further), a portion of this payment is made when the Assignment Agreement is signed by both parties (Stage 3 – above), and the remainder is paid when the deal is closed, and the property officially changes hands (Stage 4 – above).

How the Process Works

Over the years, I have heard numerous explanations (all of which were different) about how the wholesaling process is supposed to work.

Most of these explanations only got me 80% there . They never closed the loop on how to get through the closing process, abide by the law, get paid, AND not be a scumbag .

The process outlined below seems to check all of these boxes and get the job done.

Finding the Motivated Seller

I've already thoroughly explained these techniques in several articles throughout this blog. If you aren't sure where to start, you can reference these posts below:

How I Find Motivated Sellers – Step 1 , Step 2 , Step 3
How to Create a Buying Website
Million Dollar Postcard Templates That Work
How Much Should You Offer For That Property?
How To Write Offers That Get Accepted (With 3 Simple Pages)
Everything You Need To Know About Getting Your County's Delinquent Tax List
The Ultimate Negotiation Technique That Nobody Talks About
How to Avoid the Guilt Trip When Sending Low Offers
Understanding the Motivated Seller
Getting People To Say Yes

Explain Your Intent & Get the Contract Signed (IMPORTANT)

When you start making offers to motivated sellers, your offer must be accompanied by a thorough explanation of what you intend to do .

Assigning a contract is very different than buying a property outright with a traditional closing. The Seller needs to know what you plan to do (because by itself, your Purchase Agreement doesn't imply your intent to assign the contract, it just says that you CAN assign it… and that's not enough guidance for the seller).

If you don't explain your intentions to the Seller, any rational person will get confused (and probably upset) when they see what happens.

It doesn't need to be this way. All it takes is a clear explanation from you so they understand what to expect.

There are a few key points your Seller needs to be aware of:

You're not planning to buy their property yourself.
You plan to sell the contract to someone else, and then THEY will buy the property from the Seller.
You will communicate with the Seller throughout the process (they won't ever be left in the dark), so they know what's happening.
If you can't find an outside buyer for the property, the contract will expire, and the transaction won't happen .

Given that a wholesale transaction involves a couple of additional steps, it might be tempting to over-complicate this explanation as you're trying to explain things to the Seller. I had this problem when I started wholesaling with assignments.

Avoid Information Overload

It's important to explain all the basics to the seller, but you don't want to bombard them with the information they don't need to know.

Nobody likes to feel confused. Rather than being made to feel stupid, most confused people will just say “No” to save their pride ( even if this arrangement is in their best interests ).

When I explain the process to a potential Seller, it looks something like this:

“Thanks for contacting us! A fter reviewing the details of your property, we would be interested in marketing your property to our nationwide network of real estate investors. For the next 180 days, we would be willing to invest our time and resources to find a cash buyer at no cost to you. If we are able to find a buyer, we will coordinate with you and the buyer to schedule a closing and ensure you are paid the full amount listed in this purchase agreement. You will not incur any costs in this process . We will be compensated by the buyer (which we will find) and when the transaction is closed, you will receive the full sale price stated in the attached purchase agreement. In order to start the process, we will need a signed copy of the attached purchase agreement. In this contract, our company will be listed as the Buyer and our intent will be to assign this contract to another cash buyer in our network.”

To assign your purchase agreement (as explained above), you need to ensure your contract contains an “Assignment” clause, allowing you the right to assign the contract to a third party. Without this clause, you will be the only one allowed to close on the purchase, and the rest of this process won't work.

There are many different ways to state this in your contract, but if you need an example, this is what my Assignment clause looks like:

ASSIGNMENT : Buyer has an unqualified right to assign its rights under this contract to a third party. No notice to the Seller of an assignment is necessary. Such an assignment will create a novation and release the original Buyer from this contract and substitute the assignee in its place.

Reminder: Whatever documentation or language you use, you'll want to make sure you run it by an attorney in your area to ensure it's valid and abides by your local, state, and federal laws.

Due Diligence & Property Prospectus Report

Since you're not the actual end-buyer, you don't need to learn every intricate detail about the property you have under contract.

However, you need to know the basic, relevant details about it because you're going to market this thing to the public, to your buyers list (if you have one), and to anyone else who may be a potential cash buyer.

So how much do you need to know?

As a general rule, I try to uncover any potential disasters that would kill a deal if I were buying it outright ( i.e. – what kinds of things would make ME turn and run the other direction? ). I also try to gather enough information to complete a property prospectus report .

What is a property prospectus report? Mine looks something like this…

It's just a single page that lists all of the basic details about the property:

Listing Price
Property Address
Parcel Number
Legal Description
Property Size
Terrain & Surroundings
Road & Utility Access
On-Site Photo(s)
Breakdown of Costs
Comparable Listings (to give a basis for my asking price)

…and that's pretty much it. Here's a video overview of how I fill it out:

Also see: One Weird Trick to Find the Size, Shape, Location & Dimensions of Your Property and The Fastest Way to Research Any Property in the United States

The goal of this document isn't to inform my cash buyers of every last detail about the property. The point is to give them just enough information to make it obvious that the deal has great potential and huge value (if it's a good deal, this shouldn't be difficult).

That being said, if I do find any big problems in my due diligence process, I'll either walk away from the deal (if I don't think I'll be able to sell it for a profit) or at the very least, I'll be sure to disclose any “Other Issues” that I'm aware of at the bottom of the report.

(Note: If you want a copy of my Prospectus Report template, you can get it at the bottom of this blog post.)

Find the Buyer, Assign the Contract, Collect the Deposit

When you start getting calls and emails from interested buyers, you'll likely find that there are A LOT of tire-kickers out there. People will get your hopes up, only to go AWOL when it's time to sign on the dotted line.

People are extremely flakey , so if someone wants you to take their offer seriously, they'll have to agree to it in writing AND put their money where their mouth is.

When I find an interested buyer, this is how I would communicate the next steps to them:

“ Thanks for your interest in this property! If you'd like to move forward with this purchase, I'll need two things from you: 1. Please sign the attached Assignment Agreement and fax, email, or text it back by 5:00pm today . 2. Please send us a $______ deposit by 5:00pm today via wire transfer. Note: This property will not be reserved until both items are received. Once both items are received, the property will be reserved in your name and we will contact <<Title Company Name & Location>> to begin the closing process. They will contact you in the next few days and will send you the closing documents and preliminary title report for your review and approval. Our tentative goal is to close this transaction by <<30 days later>>. This means you will need to submit your funds and all the required paperwork to <<Title Company Name>> by (or before) that time. “

When it comes to the earnest deposit , when the total purchase price is $10K – $30K, I'll usually ask for approximately 10% of the total purchase price, and I round it to the nearest $1,000. If the sale price is less than $10K, then $500 is usually sufficient. The idea is just to collect something to show that the buyer is serious and not blowing smoke.

If you're closing with a title company or attorney, this money should be sent to your closing agent, who will disperse it appropriately when the deal closes (or if it falls apart). Your end buyer can either send the funds directly to your closing agent, or they can send the funds to you, and YOU can give it to your closing agent.

Unfortunately, all kinds of obstacles can get in the way of closing ( clouds on title , funding issues, inspection issues, you name it), so you don't want to get too excited about this money until the deal is closed.

Note Regarding the Assignment Agreement

You might find that some people (buyers, sellers, closing agents, etc.) tend to overthink this document simply because they don't have experience with assignments and aren't familiar with how they work.

As I explained above, this is a relatively simple document that takes your rights as the original “Buyer” of the property and transfers them to a third-party (i.e., the new person or entity that has the cash and desire to jump into your shoes and become the actual end buyer of the property).

This video offers a straightforward explanation if you ever encounter an individual who just doesn't get it.

Deliver Documentation to Title Company, Close, Get Paid

Once you have both the Assignment Agreement and the funds required for your deposit, you'll need to deliver the following documentation to your Closing Agent (i.e., Title Company or Closing Attorney):

A copy of the fully executed Purchase Agreement.
A copy of the fully executed Assignment Agreement.
The funds from the end buyer's earnest deposit.

This should be everything they need to prepare the necessary paperwork for all parties to sign and move forward with closing the transaction.

Given that this is a cash deal (with no mortgages or outside financing involved), this shouldn't be a complicated transaction for your closing agent to pull off. That said, I should warn you that not all closing agents are created equal .

When I started trying to assign contracts, I found that some title companies had no idea what they were doing. They acted like I was asking them to move heaven and earth or do something illegal. I found that MANY title companies were particularly incompetent with assigning contracts, which threw a huge wrench in my progress for a long time.

If you run into this dilemma, keep calling around to various title companies or closing attorneys in your area until you find someone who understands what you're talking about. Don't let their ignorance act as an obstacle to your business.

Advantages to Assigning Contracts

When I look back on all the properties I've listed and sold on my behalf, most sold in 6 months or less (assuming they were desirable, usable , priced right , and I was marketing them consistently ).

Whenever a property took longer than six months to sell, it was usually because of one or two issues:

My assumption about the property's market value was WAY off (and I didn't have the profit margin I thought I would).
Something was fundamentally wrong with the property (e.g., it didn't perc , it wasn't buildable, the location was terrible, etc.).

As you can imagine – neither of these issues is fun to realize, but whatever the case may have been, I found that when a property sat on the market for more than six months and the sale still hadn't occurred , something big needed to change .

This is one of the huge benefits of assigning a contract. By the time I realized I had made a pricing or due diligence mistake with one of my properties, it was clear that if I could do it all over again, I wouldn't have bought this property at the price I paid for it .

It would have been far better for me to get it under contract and then assign the purchase agreement (if I even could) rather than buy it outright.

As you can imagine, if there's ever something wrong with a property, this problem should stay in the seller's lap instead of mine.

Here are some issues that make me consider wholesaling through an assignment rather than buying a property outright:

When I'm not very confident about the property's true market value.
When there are potential problems with the property that I can't get resolved.
If I don't have the money to invest and buy the property outright.
The seller isn't willing to lower their asking price to my liking (but it's still a good deal, with enough profit margin to be a good deal for someone else).
The property isn't local, and I don't want to take on the liability of ownership.

It's important to remember that even when you have money to buy a property, it doesn't necessarily mean you should.

All kinds of menacing issues can come up with any property – and in some cases, these issues can become MAJOR obstacles to selling it.

For many investors, this uncertainty is more than enough reason to stick to wholesaling them with an assignment exclusively.

Drawbacks to Assigning Contracts

While there are a lot of benefits that can come with assigning contracts, there are a few drawbacks you should be aware of as well.

When you intend to assign a contract, you'll have to deal with a few limitations (which may or may not be a problem – depending on what you're trying to do). For example:

You won't be able to improve the property (because you don't own it, and it's not yours to improve).
You won't be able to offer seller financing (because you're not the owner, and it's not yours to finance).
You'll have a shorter window of time to finish the deal (because your contract won't last forever).
The closing process will require more attention to detail than the simplicity of a cash closing.
Your buyer MUST be able to pay all cash (because most mortgage lenders aren't willing to deal with the complexities of an assigned contract).

It's also worth noting that some states (like Ohio , for instance) have laws and statutes that essentially make it illegal to market a property you don't own in your name. It's considered the “brokering of real estate,” if you don't have a real estate license in that state, you could get fined and/or charged with a misdemeanor for working outside of this box.

Even in states where the legality of assigning contracts isn't an issue, it's still a good practice to make it abundantly clear in your listing that you are selling a CONTRACT to purchase the property, not the property itself .

For example, you could include a short paragraph in your listing that reads something like this…

“ This property is available via our Assignment Program. We have entered into a purchase contract with the current owner to buy the property for $________ (this price includes payment to the owner and all associated fees and estimated closing costs) and for an assignment fee of $_______, we will sell our rights in this contract to a third party. A reputable title company and/or attorney will be enlisted to handle the closing and transfer of title.”

With this kind of statement included in your listing, it should be clear to interested parties that you are not the current owner . You are simply selling a piece of paper that gives you (and, ultimately, your end buyer) the right to purchase the property for a certain price.

When you decide to buy a property outright and flip it (i.e., the old-fashioned way), there are a lot of freedoms you'll have that simply aren't available when you choose to assign the contract.

So, before you swear off buying properties outright, remember that every deal has different considerations you need to think about. Depending on your end goals, these issues may or may not make the property an ideal fit for wholesaling with an assignment.

It's An Ongoing Education

I'll be completely honest; I still don't consider myself an “expert” in wholesaling via assigning contracts because it isn't been my primary strategy.

On the same coin, I can say that I've been through enough wholesale assignment transactions to know that this process works .

Wholesaling is a great way to make money in real estate, but assigning contracts isn't my primary technique for handling most deals.

That being said, wholesaling is an extremely helpful sidearm at my disposal when I come across deals that don't fit perfectly inside the “cookie-cutter mold” that I like to see (and as you can probably imagine, this happens pretty frequently).

I think it's great for any real estate investor to be familiar and comfortable with this strategy because there are PLENTY of scenarios where assigning the contract is a much better fit than buying a property outright.

Want Access to My Wholesaling Toolbox?

As I mentioned earlier, I spent YEARS of my life trying to nail down the right process and documentation for wholesaling real estate. The ability to pull some huge profits out of properties I didn't even own was a major revelation, and it could be a big deal for you too.

If you want to try your hand at assigning contracts… I've got something I think will help:

A copy of my Assignment Agreement template
A copy of my Purchase Agreement (which is fully assignable)
A copy of my Property Prospectus Report template
A copy of my Wholesaling Checklist (to walk you through each step of the process)
Detailed Video Tutorials explaining how to use each document

Again, there's no “magic” to the documents I use. You can easily call up your local attorney, and I'm sure they'd be happy to charge you $600/hour to give you a similar set of documents and instructions.

Go ahead and call them… I'll wait.

It took me a long time and a lot of tedious conversations with various legal pros to fine-tune this product. These docs were designed to be both simple and user-friendly, all while including all of the pertinent details I needed to see in my wholesale deals.

My goal was to AVOID confusing Buyers, Sellers, and Closing Agents about how this process works and to give myself the freedom I needed to feel comfortable doing these types of transactions. Over time, I've found that these attributes went a long way in getting these deals done. If you’re serious about adding wholesaling to your growing repertoire of real estate investing strategies – the opportunity is sitting right in front of you.

When you consider how many more deals you'll be able to do, the risk you'll be able to avoid, and the amount of money you'll be able to make here (all while investing none of your cash), this information is easily worth 50x than the price tag I'm putting on it – I'm not exaggerating .

Note: When you sign up as an REtipster Email Subscriber , I’ll send you an instant $20 off “Discount Code” for this item, and if you enroll in the Land Investing Masterclass , you'll get access to this item for FREE. There's no pressure – I just want to make sure you're aware.

About the author

Seth Williams

Seth Williams is the Founder of REtipster.com - an online community that offers real-world guidance for real estate investors.

015: maggie found early success with house wholesaling – how did she do it, 098: how luis mastered assignments and double closings on land deals, 085: how the modern rules of house wholesaling have changed, 054: karl made six figures last year as a land investor assigning contracts. here’s how he did it…, discover the retipster club.

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Wholesale Real Estate Contracts

Are you new to the world of wholesale real estate? Look no further than our comprehensive collection of contracts, agreements, and documents designed to help you succeed in the industry.

Our free PDF and Word templates are available for download and use, and we even offer instructional videos to guide you through the process of filling out each contract in detail.

With a thorough understanding of each contract, you'll be able to confidently explain them to property sellers, cash buyers, and JV partners and even fill them out on the spot to boost your wholesale real estate business.

In the example videos below, I'll go over how to fill out the most basic real estate wholesaling contracts (listed below) so you'll have a solid understanding of each.

Purchase agreements outline the terms of the sale, including the purchase price and closing date.
Assignment agreement s allow you to assign your rights and obligations under a purchase agreement to another party.
JV agreements establish a partnership between two or more parties for a specific real estate project.
Option agreements give you the right to purchase a property at a specific price within a certain timeframe.
Notice of cancellation forms allows you to cancel a contract within a specified period without penalty.

Wholesale Real Estate Purchase Agreement (Example)

The Purchase Agreement, also known as a "PA" or "Buy and Sell Agreement," outlines the terms and conditions of the purchase.

A wholesale real estate contract is a legal agreement between a wholesaler and a buyer outlining the terms of the sale of a property.

The wholesaler finds a distressed property, negotiates a deal with the seller, and then assigns the contract to a buyer for a fee.

The buyer then takes over the contract and completes the purchase of the property.

Who gets a copy of the purchase agreement? The seller, wholesaler, and title closing agent. (the buyer will also get a copy after they agree to the terms and sign your assignment agreement)

If you'd like me to email you editable copies of all the contracts and agreements, submit your name and email address below.

Wholesale Real Estate Assignment Agreement (Example)

The Wholesale Real Estate Assignment Agreement is a contract between a wholesaler and a buyer, where the wholesaler assigns their rights to purchase a property to the buyer for a fee.

The buyer then takes over the contract and closes on the property, while the wholesaler receives their fee without ever actually owning the property themselves.

It is a common strategy used in real estate wholesaling and investing.

Who gets a copy of the assignment agreement? The wholesaler, buyer, and title closing agent.

Wholesale Real Estate JV Agreement (Example)

The Wholesale Real Estate JV Agreement is a legal contract between two or more parties who agree to work together to purchase and sell real estate properties for profit.

The agreement outlines the property, terms, and conditions of the joint venture, including the responsibilities and obligations of each party, the distribution of profits, and the duration of the partnership.

This type of agreement is commonly used in the real estate industry by investors and wholesalers who want to pool their resources and expertise to maximize their profits.

Who gets a copy of the JV agreement? The wholesalers in the joint venture and the title closing agent. (neither the seller nor the buyer gets a copy of jv agreement)

Wholesale Real Estate Option Agreement (Example)

The Wholesale Real Estate Option Agreement is a contract between a real estate wholesaler and a property owner that gives the wholesaler the right to buy the property at a discounted price within a certain timeframe.

The wholesaler enters into an agreement with the property owner and can then work to locate a potential buyer for a higher price.

Once a buyer is found, the wholesaler can return to the buyer and exercise the option by entering into an actual purchase agreement.

Who gets a copy of the option agreement? Only the seller and wholesaler.

Wholesale Real Estate Notice of Cancellation (Example)

The Wholesale Real Estate Notice of Cancellation is a document used to cancel a contract for the sale of real estate between a wholesaler and a buyer.

It is typically used when the wholesaler is unable to find a buyer for the property within a specified timeframe.

The notice of cancellation must be provided to the buyer in writing and should include the reason for the cancellation and any applicable fees or penalties.

Who gets a copy of the notice of cancellation? The seller, wholesaler, and title closing agent.

Conclusion: In wholesale real estate, a thorough understanding of contracts and agreements is crucial for success. Our comprehensive collection of free PDF and Word templates and instructional videos provides valuable resources to guide you through the process.

However, it's important to note that real estate laws and regulations can vary by location, and it's essential to check your local laws and regulations and consult a real estate attorney before using any real estate contract.

This ensures compliance and protects your interests.

By familiarizing yourself with the various contract types, such as purchase agreements, assignment agreements, JV agreements, option agreements, and notice of cancellation forms, you'll be equipped to navigate the wholesale real estate business confidently.

These contracts outline the terms and conditions of the transactions and help facilitate successful deals.

Remember, while our resources provide a solid foundation, it's crucial to adapt them to your specific circumstances and seek professional advice when necessary.

Safeguard your business by staying informed and compliant with local guidelines.

Download our editable contracts and agreements to streamline your wholesale real estate endeavors. Just provide your name and email address, and we'll send them to your inbox.

Empower yourself with knowledge, consult experts, and utilize the proper contracts to build a thriving wholesale real estate business.

By downloading any of the forms, contracts and/or paperwork, You understand that such forms, contracts and/or paperwork are provided for your convenience, and you understand that real-estate law is governed state by state, and laws and regulations change from time to time.

You also understand that you may and should seek legal and professional advice before using said forms, contracts, and/or paperwork, and You agree to hereby hold us harmless from any liability by using said forms, contracts, and/or paperwork.

Written by:

David Frizzell

Your dream life filled with success and freedom begins with real

estate wholesaling

[email protected]
250 Corey Ave #66873 , St Pete Beach, FL 33707

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Legal Templates

Home Business Assignment Agreement

Assignment Agreement Template

Use our assignment agreement to transfer contractual obligations.

Updated February 1, 2024 Reviewed by Brooke Davis

An assignment agreement is a legal document that transfers rights, responsibilities, and benefits from one party (the “assignor”) to another (the “assignee”). You can use it to reassign debt, real estate, intellectual property, leases, insurance policies, and government contracts.

What Is an Assignment Agreement?

What to include in an assignment agreement, how to assign a contract, how to write an assignment agreement, assignment agreement sample.

Partnership Interest

An assignment agreement effectively transfers the rights and obligations of a person or entity under an initial contract to another. The original party is the assignor, and the assignee takes on the contract’s duties and benefits.

It’s often a requirement to let the other party in the original deal know the contract is being transferred. It’s essential to create this form thoughtfully, as a poorly written assignment agreement may leave the assignor obligated to certain aspects of the deal.

The most common use of an assignment agreement occurs when the assignor no longer can or wants to continue with a contract. Instead of leaving the initial party or breaking the agreement, the assignor can transfer the contract to another individual or entity.

For example, imagine a small residential trash collection service plans to close its operations. Before it closes, the business brokers a deal to send its accounts to a curbside pickup company providing similar services. After notifying account holders, the latter company continues the service while receiving payment.

Create a thorough assignment agreement by including the following information:

Effective Date: The document must indicate when the transfer of rights and obligations occurs.
Parties: Include the full name and address of the assignor, assignee, and obligor (if required).
Assignment: Provide details that identify the original contract being assigned.
Third-Party Approval: If the initial contract requires the approval of the obligor, note the date the approval was received.
Signatures: Both parties must sign and date the printed assignment contract template once completed. If a notary is required, wait until you are in the presence of the official and present identification before signing. Failure to do so may result in having to redo the assignment contract.

Review the Contract Terms

Carefully review the terms of the existing contract. Some contracts may have specific provisions regarding assignment. Check for any restrictions or requirements related to assigning the contract.

Check for Anti-Assignment Clauses

Some contracts include anti-assignment clauses that prohibit or restrict the ability to assign the contract without the consent of the other party. If there’s such a clause, you may need the consent of the original parties to proceed.

Determine Assignability

Ensure that the contract is assignable. Some contracts, especially those involving personal services or unique skills, may not be assignable without the other party’s agreement.

Get Consent from the Other Party (if Required)

If the contract includes an anti-assignment clause or requires consent for assignment, seek written consent from the other party. This can often be done through a formal amendment to the contract.

Prepare an Assignment Agreement

Draft an assignment agreement that clearly outlines the transfer of rights and obligations from the assignor (the party assigning the contract) to the assignee (the party receiving the assignment). Include details such as the names of the parties, the effective date of the assignment, and the specific rights and obligations being transferred.

Include Original Contract Information

Attach a copy of the original contract or reference its key terms in the assignment agreement. This helps in clearly identifying the contract being assigned.

Execution of the Assignment Agreement

Both the assignor and assignee should sign the assignment agreement. Signatures should be notarized if required by the contract or local laws.

Notice to the Other Party

Provide notice of the assignment to the non-assigning party. This can be done formally through a letter or as specified in the contract.

File the Assignment

File the assignment agreement with the appropriate parties or entities as required. This may include filing with the original contracting party or relevant government authorities.

Communicate with Third Parties

Inform any relevant third parties, such as suppliers, customers, or service providers, about the assignment to ensure a smooth transition.

Keep Copies for Records

Keep copies of the assignment agreement, original contract, and any related communications for your records.

Here’s a list of steps on how to write an assignment agreement:

Step 1 – List the Assignor’s and Assignee’s Details

List all of the pertinent information regarding the parties involved in the transfer. This information includes their full names, addresses, phone numbers, and other relevant contact information.

This step clarifies who’s transferring the initial contract and who will take on its responsibilities.

Step 2 – Provide Original Contract Information

Describing and identifying the contract that is effectively being reassigned is essential. This step avoids any confusion after the transfer has been completed.

Step 3 – State the Consideration

Provide accurate information regarding the amount the assignee pays to assume the contract. This figure should include taxes and any relevant peripheral expenses. If the assignee will pay the consideration over a period, indicate the method and installments.

Step 4 – Provide Any Terms and Conditions

The terms and conditions of any agreement are crucial to a smooth transaction. You must cover issues such as dispute resolution, governing law, obligor approval, and any relevant clauses.

Step 5 – Obtain Signatures

Both parties must sign the agreement to ensure it is legally binding and that they have read and understood the contract. If a notary is required, wait to sign off in their presence.

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FREE 10+ Wholesale Assignment Contract Samples in PDF
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Assignment Purchase Agreement Form
FREE 10+ Wholesale Assignment Contract Samples in PDF
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