Value Bomb: Assignable Contracts
I want to give you the inside scoop on assignability of real estate contracts. Sometimes buyers will write into their offer that they want their purchase contract to be assignable, meaning that they can transfer their purchase rights to another individual or to an LLC for example.
It’s usually harmless, but every once in a while it’s not harmless, and you
want to be able to look out for those red flags. If a buyer wants their contract to be assignable but they can’t quite tell you who or what entity they want to assign it to, that’s a huge red flag.
You don’t want to get into a situation where you’re tied up in an escrow with a buyer that can’t perform, or that’s trying to do a double escrow behind the scenes, so just make sure you drill down in advance the reason that they want their contract to be assignable.