Posted by Merrick on February 09, 2006 at 19:11:36:
I am new to the world of RE investing, so you’ll have to forgive my ignorance, but could you please explain what vestin is and how I vest as the buyer?
In reference to whether or not it is legal to assign an option to another prospective buyer, I called the legal department at our local RE commission, they informed me that as long as the contract is stated as assignable it is indeed assignable as long as the terms don’t change. However, she said I can not charge an assignment fee or have him buy me out of my option because that is considered a change in terms… does this sound correct (I’m in NC if that helps)? It seems to me that the assignment contract is a completely different agreement, so the terms of the option wouldn’t actually change. Can anyone back me up on this? Does the Fee change the consideration? Any thoughts? Thanks so much for the response.
Posted by Merrick on February 09, 2006 at 08:38:48:
I know this is kind of old-school thinking, but I was Just wondering if it is possible to assign an option to purchase to another buyer (not a purchase agreement, but an option)? If so, would this work just like assigning a purchase agreement? Draw up the option with me as the optionee “and/or assigns”? And, to make it legal, does it have to be filed (even if it’s say, a 30 day option)? Any advice would be appreciated, Thanks for the info.
It’s generally preferable to vest as the buyer without the “and/or assigns” part as it can cause problems later, particularly with title company.
Would-be real estate guru’s have tought this over the years but it has caused me problems when the vesting is so “iffy.” Then, it’s better to just assign the interest in the (…option; trust; purchase agreement, etc.) to the assignee. Cleaner, too.