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    Legal & Title

    Assignment

    SilverCrest EstatesThe SilverCrest Estates Team

    Definition

    An assignment is the transfer of one party's rights and obligations under a contract to a different party. In residential real estate, it most often shows up when a buyer under a purchase contract passes that contract along to a different buyer, often in exchange for a fee. As a homeowner selling your house, you have every right to limit or outright prohibit assignment in your purchase agreement if it's important to you to know exactly who will actually show up at closing. Contracts containing language like "and/or assigns" after the buyer's name are a signal worth paying attention to during negotiations.

    Example

    When reviewing her purchase contract, Denise noticed the buyer's name was followed by "and/or assigns," meaning the person signing might not be the one who ultimately closes on her home. Concerned about who would actually show up at the closing table, she asked her agent to explain what that language meant for her sale. Her agent recommended requiring proof of funds from whoever actually intended to complete the purchase before she accepted the offer, along with an earnest money deposit large enough to discourage a walkaway. Denise added those requirements as conditions to signing the contract. Denise added that requirement, and the original buyer ended up closing on the home himself without assigning the contract to anyone else. She said having that clarity in writing gave her much more peace of mind through the process.

    Frequently asked questions

    It's entirely your choice as the seller. If certainty matters to you, you can require a non-assignable contract along with proof of funds from the actual closing party.

    Not directly, since your agreed sale price is fixed in the contract, but it does add the risk that your deal now depends on a buyer you haven't personally vetted yourself.

    Look for language such as "and/or assigns" near the buyer's name, or ask your agent or attorney to review the assignment clause specifically before you sign anything.

    The new assignee steps into the original buyer's shoes and signs the closing documents in their place. Your sale price and terms generally stay the same, but you're now closing with a party you may not have vetted directly.

    Yes, many sellers do exactly this, since a meaningful deposit gives the original buyer more incentive to close themselves rather than shopping the contract around to someone else.

    No, SilverCrest buys directly and closes on the homes it agrees to purchase, so sellers know exactly who they're dealing with from the offer through the closing table.

    Related terms

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