explain cooperative assignment with seller

[Joseph44 0]

Hi Everyone ,

I think I just had a senior momment could someone please explain a cooperative

assignment with a seller?This seller doesn't want a lease/option.But when I offered a c/a to her

I just went blank.Please I need a jolt.Thanks all and have a good wk/nd!!

[MichaelC 160]

Joseph, you can do a search on the board for CA's or cooperative assignments and find days worth of reading. To summarize, a CA is when you put together a lease option deal for the homeowner. You are not in the middle, and not working against them. You are cooperating with them, trying to get them a t/b who will pay them full price and top rental rate. In exchange, you are paid from the option money you collect. The benefit for the homeowner is they will net more at closing than if they were to sell traditionally, and your services to them are free.

[Joseph44 0]

Hi M.C.

Thanks M C for the jolt sorry this took soooo long Thanks again.

[rrk 0]

Joseph, you can do a search on the board for CA's or cooperative assignments and find days worth of reading. To summarize, a CA is when you put together a lease option deal for the homeowner. You are not in the middle, and not working against them. You are cooperating with them, trying to get them a t/b who will pay them full price and top rental rate. In exchange, you are paid from the option money you collect. The benefit for the homeowner is they will net more at closing than if they were to sell traditionally, and your services to them are free.

 

Hello everyone.

 

I just finished reading MC's manual. It was very informative. I also read some, but not ALL (it's huge), posts concerning CA (Cooperative Assignments). I understand the concept. However, after reviewing the Agreement forms used for SLO and the forms used for CA, I find it confusing, (the different restriction provisions). Here is the confusion, which I would appreciate clarification:

 

SLO: the investor is the "middleperson" between owner and T/B. Here, the investor enters an RLOA with owner and the RLOA allows middleperson to sublet/assign and the investor enters a separate RLA (which does not allow T/B to sublet/assign) and OPA with T/B. Here, the middleperson (investor) can also assign the RLOA (because it is assignable). It can be assigned to the owner as well.

 

CA: the investor is NOT the "middleperson". Here, the investor (or T/B?) enters RLA (for CA) with owner. This RLA also has "no sublet/assignment" provision. Here is the confusing part - under the AA, the T/B assigns the rights under an "Agreement" between Assignor and Seller to Assignee. Please explain if this is wrong.

 

Is the Assignee the investor? If Assignee is the T/B (not investor), please explain.

What is the "Agreement" referenced therein that is being assigned? the RLA has non-assignability clause.

 

Please help out to clarify. Thank you.

 

Robert

[MichaelC 160]

Robert, you actually know more than you think.

SLO: the investor is the "middleperson" between owner and T/B. Here, the investor enters an RLOA with owner and the RLOA allows middleperson to sublet/assign and the investor enters a separate RLA (which does not allow T/B to sublet/assign) and OPA with T/B. Here, the middleperson (investor) can also assign the RLOA (because it is assignable). It can be assigned to the owner as well.

This is correct.

CA: the investor is NOT the "middleperson". Here, the investor (or T/B?) enters RLA (for CA) with owner. This RLA also has "no sublet/assignment" provision. Here is the confusing part - under the AA, the T/B assigns the rights under an "Agreement" between Assignor and Seller to Assignee. Please explain if this is wrong.

This is correct, also, with one clarification. When doing a CA, there is a specific CA Assignment Agreement you would use. It varies from the standard Assignment Agreement you also have, that you would use for other type deals and assignments.

Is the Assignee the investor? If Assignee is the T/B (not investor), please explain.

The assignee is the party who is paying the assignment fee. The assignor is the party assigning/transferring/selling their interest in the deal to another.

 

Robert, one bit of advice. Learn this business in small, manageable steps. While understanding contracts and agreements is necessary, there is time for that when you have a pending deal. Focus on what needs to be done today, and you'll find things less confusing and overwhelming.