In an assignment transaction, the investor assigns their purchase contract to an end buyer for an assignment fee. 1st Option Title provides experienced title and escrow services for assignment deals throughout Texas and Arizona.
The original buyer (assignor) signs an Assignment of Contract, transferring their rights and obligations under the purchase agreement to a new buyer (assignee). The assignee steps into the original buyer's shoes and closes on the property. The assignor collects the assignment fee as their profit.
When a contract is assigned, the title company needs to understand that the closing will be between the original seller and the new buyer (the assignee). The assignment agreement is a separate document from the purchase contract. We review the assignment, ensure the purchase contract allows assignment, and coordinate with all parties.
Assignment transactions can create confusion if the title company doesn't understand the structure. Issues like who gets the earnest money, how the assignment fee is paid, and whose name goes on the title commitment require an experienced eye. 1st Option Title handles these regularly.
Contact 1st Option Title to discuss your transaction.