Assignment
Transferring the rights to a signed contract to a new buyer for a fee. Common in wholesaling. Some contracts and some states restrict when it's allowed.
Your Room opens on showings and offers, with everything before the listing already ticked.
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See how it worksWhere this comes up: on the market
Part 1 of 4
Why a seller cares
An offer written to "John Smith and/or assigns" may end up with a buyer you have never met. That is common in wholesaling, and it is worth knowing the day the offer arrives rather than the week before closing.
Part 2 of 4
A simple example
An investor offers $180,000 and/or assigns. Two weeks later they assign the contract to a rehab company for a $10,000 fee, and the rehab company is who shows up at closing.
| What you see | What is likely going on |
|---|---|
| "and/or assigns" after the buyer's name | The buyer means to sell the contract to somebody else |
| A long inspection window and a small deposit | Time to find the end buyer, with little at risk if they do not |
| A new name on the closing paperwork | The assignment happened; the original buyer collected a fee |
The contract can change hands. Whether it may is usually a line in the contract itself.
Part 3 of 4
What people get wrong
That an assignment needs your permission by default. Many contracts allow it unless they say otherwise, which is why the line is worth reading before signing.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
In your Room, this word explains itself where it appears.
Your Room defines assignment in the step you meet it in, beside the document or the date it belongs to. Free to set up, with an agent or on your own.
Organize my saleFree to set up. Pay once when you list: $89 or $189. 7-day refund.