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Updated over 6 years ago,
Flipping houses and The Contracts
I’m new to flipping houses, i never did it before and i just want to know where can i get the actual assignment contract from? i watch tons and tons of videos about flipping but they just mention the contract but never say where to get it from.
The best practice, in my opinion, is to use 3 contracts:
1. The purchase contract. Use whatever form is commonly used in your state or jurisdiction. Make sure you add an addendum to include special terms, including a complete right to assign the contract to a 3rd party.
2. The assignment agreement. This is the document that memorializes your agreement to assign the contract to another party in exchange for whatever fee you will charge. This document specifies the fee and when that fee will be paid to you.
3. The assignment itself. This document goes to the title company. It's a very short document which states only that you are assigning all right, title, and interest in the purchase contract to another party "in exchange for valuable consideration". Don't specify the amount of the consideration or anything else about it. When all is said and done, the title company does one closing and you are never in title. I recommend getting your fee as soon as the assignment agreement is inked. That may or may not be possible, depending on your negotiating position. In any case, try to get your fee separately from the title company closing.