When it comes to real estate transactions, an assignment of contract is a common document used to transfer ownership of a property from one party to another. This type of transfer is often used by real estate investors who want to sell a property before ever taking ownership themselves. If you`re in the process of filling out an assignment of contract, it`s important to know the steps involved to ensure everything is done correctly.
Step 1: Gather the necessary information
Before you begin filling out the assignment of contract, you`ll need to gather all the necessary information. This includes the names of all parties involved in the transaction, the address and legal description of the property, and the terms of the original contract.
Step 2: Determine the assignment fee
The assignment fee is the amount of money the assignor (the original property owner) will receive for assigning the contract to the assignee (the new property owner). This fee should be determined prior to filling out the assignment of contract and should be included in the document.
Step 3: Add the date and effective date
The date should be the date that the document is executed (signed by both parties), while the effective date is the date that the assignment of contract takes effect. These dates should be clearly written in the document.
Step 4: Include the legal description of the property
The legal description of the property should be included in the assignment of contract. This description can be found on the property`s title and should include the property`s boundaries and any identifying characteristics.
Step 5: Add any additional terms and conditions
If the original contract had any terms or conditions that the assignee needs to be aware of, they should be included in the assignment of contract. This could include things like contingencies or deadlines.
Step 6: Sign and notarize the document
Both the assignor and assignee should sign the assignment of contract. Additionally, the document should be notarized to ensure its legality.
In conclusion, filling out an assignment of contract can seem overwhelming at first, but it`s an important step in any real estate transaction. By following these steps and double-checking your work, you can ensure that everything is done correctly and legally.