Backing off an assignment contract

[Jo W.]

Hello and thanks in advanced for any help.

My real estate agent approached me with a deal that came from a wholesaler and on first review of the deal and after walking with 1 contractor it seemed like a good deal. 

I signed an assignment contract but did not pay anything, after further inspection of the property and getting quotes for what needs to be done this is a recipe for loosing money. 

What are my options for backing off the deal? Note that i never received the contract between the seller and the wholesaler.

Here is the contract i signed:

ASSIGNMENT

ASSIGNMENT, dated below, by and between:

****residing at***(Assignor);

And

***residing at***(Assignee).

BY THESE PRESENTS,Assignor,for valuable consideration received from Assignee i.e.,the sum of$_10,000, hereby assigns and transfers all rights, privileges, duties and/or obligations to Assignee which Assignor has or may have as “Purchaser” in a certain contract to purchase real property commonly known as*** from***, the Seller in said contract. The consideration paid by Assignee includes a deposit of$_2500 paid by Assignor and being held by the escrow agent on the contract and that deposit is also hereby assigned to Assignee.

BY THESE PRESENTS, Assignee accepts the Assignment from Assignor and agrees to be bound fully in the place and stead of Assignor by the terms of the above mentioned contract; and further agrees to hold Assignor harmless and indemnify Assignor for any damages or costs incurred by Assignor as a result of Assignee’s default in performance on said contract.

Dated:

Assignor

Dated:

Assignee 

[Nick C.]

You should definitely take your lawyer's advice over mine, I'm just a guy on the internet. But I don't think this assignor has a leg to stand on. You never paid the $2500 deposit and never got a copy of the contract that the assignment references. I would just let him know you're not moving forward asap. If he's smart he will try to find a new buyer right away. 

I have no moral objection to wholesaling, but do you really think this wholesaler is going to pay the many thousands of dollars and many months or years it will take to get in front of a judge to try to explain that he was selling you something he didn't own, and you owe him money for it. If it ever got that far, which is extremely unlikely, I don't think it would go well for the wholesaler.