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MikeT/NC

Another Pure option ?

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Shouldn't the assignment have a clause stating the amount of time the buyer/assignee has to close on the property? For instance, if you had a 60 day option with the seller and you found a buyer five days in then you wouldn't want to give the buyer the whole 55 days you had left in the option. He could mess you around and then not close and you could lose the whole deal when your option expires. If he's a cash buyer he should be able to close within a couple of weeks. So there should be a clause in the assignment stating that this agreement is good for two weeks after he signs the assignment and it's sent to the closing attorney. Right? If he doesn't then he forfeits his earnest money and you go on to your next buyer.

All of this is assuming you're selling to a cash buyer, someone who doesn't need to get financing.

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Mike, if you are selling to a cash buyer then yes, there's no reason why the buyer shouldn't put down a nonrefundable earnest money deposit and be held to a quick close timeframe. The exception being an inspection that reveals an unexpected problem, such as a cracked foundation or a sinkhole, etc. Of course, if the property is being purchased as-is, the inspection clause is a moot point.

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I'm confused here. If you found a buyer in 5 days, You are assigning your option agreement to the buyer for a fee. correct?

So if the option is for 75K and you market it for 85K, then the buyer gives you 10K and they have the 'right' to purchase the house for $75K

with the existing time frame that was originally agreed upon.

 

So, why force them to close if it's a cash buyer?

 

What am I missing?

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nash, if the assignor above assigns the deal to the assignee for an assignment fee and receives that fee in total upfront, then he shouldn't care a bit what the assignee does as he is totally out of the deal. On the other hand, if the deal was set up so the assignor had to wait for the assignee to close on the deal, he would want some protection in case the assignee couldn't close.

Of course, this is not the recommended way to do assignments. Get your fee upfront and move on.

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