Quick Question About Closing

[Reggie Youngblood]

Is it legal for the buyer to pay the assignment fee at the time of the assignment, or does that have to take place at closing? Also, if it is ok for the fee to be payed at the assignment, would I have to go to closing?

[Ryan Webber]

Bill Gulley,

RESPA ONLY regulates federally related mortgage transactions. It does NOT cover cash transactions or hard money loans or many commercial deals. Therefore in most wholesale deals you would not HAVE to disclose anything.

BUT the assignment contract would naturally specify the exact amount of your fee. The title agent will need a copy of the assignment to close the property so disclosure of the fee is a COMPLETELY irrelevant issue.

Also, RESPA does not tie into IRS regulations, either. That is a whole different thing. My title company doesn't even report anything to the IRS about my transactions. I am completely responsible for that.

Yes, Reggie Youngblood, a buyer can pay you part of or all of the assignment fee at the time of agreement or at closing. You do not have to go to closing at all IF you are assigning the property. When assigning a property, you won't have any papers to sign to close the transaction. You don't have to go to closing even if you didn't get all of your your assignment fee, but you would either need to pick up your check or have your title agent wire you the money.