Assistance please, Mr.Behle, Mr.Bronchick... - Posted by Scott

Posted by John Behle on November 13, 1998 at 12:40:51:

I’m not an attorney, so all I have to give you is my opinion.

When you sign a contract, you are liable. Assigning it doesn’t change that unless the other party specifically agreed to it in the original contract (doesn’t sound like it). If you assign it at this point, you are liable even if the party you assign it to agreed to hold you “harmless”.

If you have a tight contract, clouding the title would be needless. My process I mentioned of clouding the title specifically relates to the purchase of notes which is a little bit of a different ball game. Note sellers are sometimes very anxious and it is a market that can be very competitive as far as the bidding. Recourse and damages if a note seller sold to someone else are not as clear cut as in real estate. Your need to cloud the title with a notice of interest is much less in this scenario, but it can’t necessarily hurt.

A lot depends on your contract and the wording. If you are very concerned about these issues, read the contract carefully and consult a local attorney.

Assistance please, Mr.Behle, Mr.Bronchick… - Posted by Scott

Posted by Scott on November 13, 1998 at 11:06:17:

I just ‘tied up’ (contract for sale) a nice, 3700 sq ft 4-plex with $500. Sales price= $62,000. Gross rents= $950. The place is grossly undervalued with respect to rents and it should appraise ‘as is’ for $85-90K.I need to flip/assign the contract. Am I required to notify the seller in writing of the assignment when it happens? Do I need to file something in the court records to cloud the title in case the sellers get upset that I’m flipping the property for more than they settled on? Am I still on the hook for performance of the contract once it is assigned? Help, please.
Thank you!