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Updated over 11 years ago on . Most recent reply

User Stats

86
Posts
56
Votes
Craig E.
  • Real Estate Broker / General Contractor
  • Sacramento, CA
56
Votes |
86
Posts

Assignee going around assignor after escrow period.

Craig E.
  • Real Estate Broker / General Contractor
  • Sacramento, CA
Posted

Scenario: The signed A-B contract cannot be altered before assigning it to C (absent agreement by all parties, not likely and cumbersome). What happens if C (conveniently) fails to close and we reach the deadline? C loses his right to purchase under the A-B contract. B loses his right to purchase under the A-B contract. A and C now have the right to enter into a new contract for a new agreed upon price. What happens to B and B's assignment fee? How can this easily be prevented?

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