Posted by ski on March 18, 2006 at 19:26:39:
Been there done that. The builder/seller backed out at the last minute. Contract was in my corp’s. name. The property appreciated about 80k in the 10 months from the signing. owner/builder decided that the contract could not be assigned to my wife (sect’y of the corp.) because the original contract was with the corp. I had no recourse. He sold it at 80k above my contract price. I think my realtor who was handling the deal Fu8888ed up.
Creative ideas for this problem?? - Posted by Lindsay
Posted by Lindsay on March 17, 2006 at 17:50:37:
My Husband and I reserved a condo in the first phase of a project. It has been 6 months since we reserved it and are scheduled to close in about 4 months. We put it under contract a few months ago, but have since decided that we would rather flip it to my Father who wants it as a rental. We have discussed it and he is willing to pay us for half of our equity.
The condos are now being reserved for 10k more than they were when we reserved them. I was hoping to be able to assign our contract to my father, but when we put it under contract we only put our names and not “and or assigns” in the contract.
Does not having the “and or assigns” in the contract limit the assignability of the contract? Can anyone help with any other ways to get the desired results and not have to pay 2 sets of closing costs(one for me to buy it and the other for my dad to purchase it from us)? By the way, we live in Utah if that helps.
Thank you for any advice!! Matt
Re: Creative ideas for this problem?? - Posted by Luke Hoppel
Posted by Luke Hoppel on March 20, 2006 at 10:20:09:
In the majority of states, all contracts are assignable regardless if they have the “and or assignee” written on the contract.
- Check to see if your state operates as stated.
- Ensure there are no clauses in the contract preventing assignments.
Re: Creative ideas for this problem?? - Posted by Joe C. (AR)
Posted by Joe C. (AR) on March 17, 2006 at 23:32:06:
1st. Have you spoken with the seller to see if this is a problem? The seller may agree to an addendum allowing you to assign (limited)to your father.
OR…When it’s time to close, inform the title company that you want to take title in a land trust or LLC. After the closing transfer ownership of the entity to your father.
OR…At closing time, tell the title company you want to take title in your name AND your father’s name. Have them also prepare a deed conveying your portion to your father (for $10) to be filed after the initial conveyance to you both. Minimal extra cost for closing and filing.
You really should have no problem getting this done if your father has the financial strength to carry the financing on his own.
Just my .02
Joe C. (AR)