When and how do I get to close?

Question

I put a property under contract. I submitted the Purchase and Sales Agreement to the title company with a $100 deposit.

I assigned the contract to another buyer. I submitted the Assignment of Contract to the title company and the new buyer submitted a $10,000 EMD.

What now?

The seller still needs to fill out a 5 minute information packet. It has been 2 weeks and he still has not done it yet.

The buyer needs to decide if he is getting a survey. I sent him a text at 12pm yesterday. He did not return it.

The contract states that we close “ON OR BEFORE” February 15. How is this determined? Do I determine the closing date?

Does the seller need to have the information packet filled out? Does the new buyer need to have the survey completed?

Is it the buyer that determines the closing date, the title company, or myself?

Who runs title insurance? The new buyer paid for it. So do I need to make those arrangements or does the new buyer?

I tried talking to the title company about this but they basically said the process is super simple and left me super confused. Should I make another trip to the title company today?

Edit: Sounds good, Bob. Do you have a solution?

Tom Gimer · Answer

You are the assignor. Aside from making sure your assignment fee is accurate on the HUD and that the EMD is properly secured and forfeited to you in the event the end buyer defaults, try to stay out of the way. Make sure your contract with the seller extends beyond the time allotted for the assignee to settle and have a back up buyer ready.

Bob S. · Answer

You really need to connect with someone doing deals that you trust, you are not anywhere near ready to be on your own.This reads as though they are kicking you out of the deal. Seller and buyer not returning your call but yet buyer sent 10k EM . IMO they are moving on withOUT you

Reed Rickenbach · Answer

Did the new buyer sign the Assignment of Contract? Did the contract specify your assignment fee? If so, it sounds like you're in the clear. Keep in contact with the title company and make sure your fee is on the closing statement.

Guy Gimenez · Answer

This is a direct result of "jumping in with both feet" before you have a working knowledge of how to construct a deal. You're not alone here but this will be a great learning lesson and it's often one of the most valuable lessons you can learn. Your first job will be to build relationships with those in your area who are doing assignments and understand the process from top to bottom. They know the forms, strategies, processes. Without these relationships, you'll end up at this same place again. This "mentorship" comes at a price but good education is never cheap. And there is no substitute for 3 to 4 hours a day of good old research. In your current situation, it's clear you didn't understand your contract which is huge mistake. Spend time reviewing and researching the contract online and off so you'll understand how to draft it properly to address the matters you're now dealing with. Then research the process...there's plenty of information online on the process of assigning a contract. Since you've already assigned the contract you didn't understand there's not much you can do other than wait for things to play out. Once assigned, you're no longer the buyer...you presumably assigned all your rights and obligations to the assignee. And yes, the title company doesn't have time to coach you on how to complete a contract or the administration of a contract...that falls solely on your shoulders. Start your education process today so you'll be prepared for the next one.

@Mike Schorah

When and how do I get to close?

When and how do I get to close?

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