Assignment of Contract
Updated: Jun 16, 2020
Can a Buyer assign or transfer their rights in a real estate transaction to a third person prior to the closing date?
In most residential real estate contracts, the parties are the Buyer(s) and Seller(s). In some instances, a Buyer may decide to assign/transfer the contract to an independent third party. Can they do this?
Normally, yes. However, certain conditions must be met before an assignment can be made. The contract must allow for an assignment and seller(s) usually have to agree to the assignment of buyer (depending on the contractual terms).
There are instances when an assignment cannot take place...
The Florida Supreme Court has ruled that there are instances when a contract cannot be assigned. As stated above, a contract cannot be assigned if the contract does not allow for it. The other two instances that an assignment may not take place is if the assignment would somehow violate public policy or it would violate State or Federal law. There may also be other instances where the contract cannot be assigned.
It is important to review your contract prior to signing to determine if the contract has the necessary language authorizing for or against an assignment of contract.
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