Right to assign a contract for purchase?

[Warped]

What is the name of your state? Virginia

I have been doing some reading on real estate laws and I need to know if Virginia recognizes or allows the right to assign a contract to purchase real estate. For example...


Let's say that I want to buy a piece of investment property, potentially to resell it. If I used a contract that includes a line that says, "Purchaser shall have the right to assign his/her interest in this contract prior to escrow." Would that, according to Virginia laws, allow me to transfer my right to purchase the property to another person or entity?

Thank you in advance for any help or suggestions.

 

[HomeGuru]

What is the name of your state? Virginia

I have been doing some reading on real estate laws and I need to know if Virginia recognizes or allows the right to assign a contract to purchase real estate. For example...


Let's say that I want to buy a piece of investment property, potentially to resell it. If I used a contract that includes a line that says, "Purchaser shall have the right to assign his/her interest in this contract prior to escrow." Would that, according to Virginia laws, allow me to transfer my right to purchase the property to another person or entity?

Thank you in advance for any help or suggestions.

**A: it all depends upon the situation.

 

[Warped]

**A: it all depends upon the situation.

The best way I can think of to describe the situation is this...

I put a contract to purchase (purchase agreement?) on the property. Before I acquire financing, I find someone who will buy the property from me at a higher price than what I agreed to pay for it who would then be assigned the contract. The seller would get the contract price and I would get the difference between the price that I contracted to buy the house for and the higher price that my buyer agreed to pay me for the house. Good Lord that sounds confusing.

To put it into mathematical terms...

1: I contract to buy the house for $160k with the option to reassign the contract.

2: I find a buyer who will pay $180k for the house and reassign the contract to that person for $20k.

3: The seller gets the contract price, the buyer gets the house and I make $20k.

Provided the house is worth at or more than $180k, everyone wins. The question remains though if it's legal and ethical to reassign a contract under those circumstances in Virginia. Thanks for the help!

 

[HomeGuru]

The best way I can think of to describe the situation is this...

I put a contract to purchase (purchase agreement?) on the property. Before I acquire financing, I find someone who will buy the property from me at a higher price than what I agreed to pay for it who would then be assigned the contract. The seller would get the contract price and I would get the difference between the price that I contracted to buy the house for and the higher price that my buyer agreed to pay me for the house. Good Lord that sounds confusing.

To put it into mathematical terms...

1: I contract to buy the house for $160k with the option to reassign the contract.

2: I find a buyer who will pay $180k for the house and reassign the contract to that person for $20k.

3: The seller gets the contract price, the buyer gets the house and I make $20k.

Provided the house is worth at or more than $180k, everyone wins. The question remains though if it's legal and ethical to reassign a contract under those circumstances in Virginia. Thanks for the help!

**A: the answer is yes in most cases.

 

[Warped]

Thanks HomeGuru.

 

[HomeGuru]

No problem.