How to Assign a Contract to a Cash Buyer
Once you have a signed purchase contract with a seller, you're not buying anything — you're selling the right to buy. You do that with an Assignment Agreement. Here's the exact process.
What happens in an assignment
When you assign a wholesale contract, three parties are involved:
- Seller — owns the property, signed the original purchase contract with you
- You (Assignor) — have the equitable interest in the contract; collecting a fee to transfer it
- Cash Buyer (Assignee) — paying your fee to step into your shoes and close with the seller
The seller may or may not know you're assigning — your original contract determines this. Disclosures required by state law (like Ohio's SB 155) may require them to know upfront.
Step-by-step: the assignment process
Confirm your buyer's interest and timeline
Before paperwork: call or meet with your buyer, confirm they've reviewed the property (photos/video or walkthrough), confirm they can close by your contract's closing date, and agree on the assignment fee.
Sign the Assignment of Real Estate Purchase Agreement
This document names you (assignor) and your buyer (assignee), references the original purchase contract address and date, states the assignment fee, and includes the buyer's acknowledgment that they accept all contract terms. Keep it simple — a 1–2 page document.
Collect a non-refundable deposit
This is critical. Collect 25–50% of your assignment fee upfront as a non-refundable deposit. If you don't, your buyer can walk with no consequence. Venmo, wire, or certified check. Get it before handing over any access or paperwork to the seller.
Send assignment agreement to title company
Contact the title company (or attorney handling closing) and send them: the original purchase contract, the assignment agreement, and the buyer's contact info. They handle the rest. The remaining portion of your fee is paid at closing from buyer's funds, shown on the HUD/ALTA statement.
Attend or skip closing
You typically don't need to attend closing once the assignment is complete and your fee is confirmed on the closing statement. The title company will wire or mail your remaining fee. Confirm the HUD before closing day so there are no surprises.
How the money flows
Example: You have a property under contract at $75,000. Your buyer is paying $83,000. Your assignment fee is $8,000.
- Buyer pays $4,000 non-refundable deposit when signing assignment agreement
- At closing: buyer brings $83,000 total funds
- Title company pays seller $75,000
- Title company pays you $4,000 (remaining fee)
- Your total: $8,000 — you never bought anything
What if your buyer backs out?
If you collected a non-refundable deposit, you keep it. Then you need to find a new buyer fast or cancel the original contract before losing your earnest money. This is exactly why the non-refundable deposit matters. See also: What happens if my cash buyer can't close.
Choosing the right title company
Not all title companies are comfortable with wholesale assignments. Find one that regularly works with investors — they'll know what an assignment agreement is and how to handle it. Call ahead and confirm they can process assignment fees before opening escrow.
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