Wholesaling
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback
Updated almost 14 years ago,
Unassignable contract...Was this legal?
So here's a scenario for y'all. I did a dumb thing and didn't use a lawyer on a sale, and because I was too busy it came back to bite me.
I sold a property as a cash deal on a standard Indiana real estate contract. Everything was pretty normal. The person who bought it didn't seem to have any intention of wholesaling it (so I thought). We get close to closing and she tells the title company that she is going to assign the contract to someone else. The title company says they've never really done a transaction like that, but she sent over the assignment signed by her and the end buyer. The title company calls my agent and tells him that she plans to assign the contract at closing. He doesn't understand that means there is a fee and terms to that and thinks she just didn't want it, but found someone who did at the same price =) (I've since explained to him the real intention of assigning a contract.) So he tells the title company that as long as what they are doing is legal he doesn't believe I will have a problem with it (and I wouldn't have).
The closing comes and we sign the few closing documents with the end buyers name on them. I paid no attention to the name or questioned who it was. Then I find out through some research that it is a company owned by someone I know.
The point is, I called the title company to ask how she was able to assign the contract without my approval. My agent nor I never saw the Assignment paper because they never disclosed it to my agent. The title company now is putting responsibility on my agent because it's "part of the contract" and they don't deal with that. The contract never stated "or assigns" either.
In this scenario, is there any recourse?