Who is liable to close in a contract assignment wholesale

[Chris Gomes]

If you place a house under contract and attempt to wholesale the deal to another party by assigning the contract to purchase, which party is legally obligated to close? A contract assignment addendum has been signed by both the original buyer and the new assigned buyer, but the new assigned buyer is refusing to close. Is the original intended buyer obligated to close or the new assigned buyer?

[Dan Maciejewski]

What does the initial contract say?  My state Realtor / Bar contracts have a liability clause.  You have to select whether or not it is assignable, and whether or not the original signer gets released from liability if it does get assigned.

If you are using your own P/S, I would think you would want that addressed, especially if your business plan is built around assignation of contracts.

I am not a lawyer but I would think that without that wording, the contact forces the signer to perform if the assignee doesn't.

If you haven't already, get a lawyer to draw up a P/S agreement that will hold up under scrutiny.