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Assignment Agreement Template

Use our assignment agreement to transfer contractual obligations.

Updated February 1, 2024 Written by Josh Sainsbury | Reviewed by Brooke Davis

An assignment agreement is a legal document that transfers rights, responsibilities, and benefits from one party (the “assignor”) to another (the “assignee”). You can use it to reassign debt, real estate, intellectual property, leases, insurance policies, and government contracts.

What Is an Assignment Agreement?

What to include in an assignment agreement, how to assign a contract, how to write an assignment agreement, assignment agreement sample.

Partnership Interest

An assignment agreement effectively transfers the rights and obligations of a person or entity under an initial contract to another. The original party is the assignor, and the assignee takes on the contract’s duties and benefits.

It’s often a requirement to let the other party in the original deal know the contract is being transferred. It’s essential to create this form thoughtfully, as a poorly written assignment agreement may leave the assignor obligated to certain aspects of the deal.

The most common use of an assignment agreement occurs when the assignor no longer can or wants to continue with a contract. Instead of leaving the initial party or breaking the agreement, the assignor can transfer the contract to another individual or entity.

For example, imagine a small residential trash collection service plans to close its operations. Before it closes, the business brokers a deal to send its accounts to a curbside pickup company providing similar services. After notifying account holders, the latter company continues the service while receiving payment.

Create a thorough assignment agreement by including the following information:

• Effective Date:  The document must indicate when the transfer of rights and obligations occurs.
• Parties:  Include the full name and address of the assignor, assignee, and obligor (if required).
• Assignment:  Provide details that identify the original contract being assigned.
• Third-Party Approval: If the initial contract requires the approval of the obligor, note the date the approval was received.
• Signatures:  Both parties must sign and date the printed assignment contract template once completed. If a notary is required, wait until you are in the presence of the official and present identification before signing. Failure to do so may result in having to redo the assignment contract.

Review the Contract Terms

Carefully review the terms of the existing contract. Some contracts may have specific provisions regarding assignment. Check for any restrictions or requirements related to assigning the contract.

Check for Anti-Assignment Clauses

Some contracts include anti-assignment clauses that prohibit or restrict the ability to assign the contract without the consent of the other party. If there’s such a clause, you may need the consent of the original parties to proceed.

Determine Assignability

Ensure that the contract is assignable. Some contracts, especially those involving personal services or unique skills, may not be assignable without the other party’s agreement.

Get Consent from the Other Party (if Required)

If the contract includes an anti-assignment clause or requires consent for assignment, seek written consent from the other party. This can often be done through a formal amendment to the contract.

Prepare an Assignment Agreement

Draft an assignment agreement that clearly outlines the transfer of rights and obligations from the assignor (the party assigning the contract) to the assignee (the party receiving the assignment). Include details such as the names of the parties, the effective date of the assignment, and the specific rights and obligations being transferred.

Include Original Contract Information

Attach a copy of the original contract or reference its key terms in the assignment agreement. This helps in clearly identifying the contract being assigned.

Execution of the Assignment Agreement

Both the assignor and assignee should sign the assignment agreement. Signatures should be notarized if required by the contract or local laws.

Notice to the Other Party

Provide notice of the assignment to the non-assigning party. This can be done formally through a letter or as specified in the contract.

File the Assignment

File the assignment agreement with the appropriate parties or entities as required. This may include filing with the original contracting party or relevant government authorities.

Communicate with Third Parties

Inform any relevant third parties, such as suppliers, customers, or service providers, about the assignment to ensure a smooth transition.

Keep Copies for Records

Keep copies of the assignment agreement, original contract, and any related communications for your records.

Here’s a list of steps on how to write an assignment agreement:

Step 1 – List the Assignor’s and Assignee’s Details

List all of the pertinent information regarding the parties involved in the transfer. This information includes their full names, addresses, phone numbers, and other relevant contact information.

This step clarifies who’s transferring the initial contract and who will take on its responsibilities.

Step 2 – Provide Original Contract Information

Describing and identifying the contract that is effectively being reassigned is essential. This step avoids any confusion after the transfer has been completed.

Step 3 – State the Consideration

Provide accurate information regarding the amount the assignee pays to assume the contract. This figure should include taxes and any relevant peripheral expenses. If the assignee will pay the consideration over a period, indicate the method and installments.

Step 4 – Provide Any Terms and Conditions

The terms and conditions of any agreement are crucial to a smooth transaction. You must cover issues such as dispute resolution, governing law, obligor approval, and any relevant clauses.

Step 5 – Obtain Signatures

Both parties must sign the agreement to ensure it is legally binding and that they have read and understood the contract. If a notary is required, wait to sign off in their presence.

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• Sales and Purchase Agreement : Outlines the terms and conditions of an item sale.
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Contract Assignment Agreement

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Download the Contract Assignment Agreement to transfer your duties, obligations, and rights. An agreement between two parties outlines the conditions of a contract assignment.

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Prepared by:

​ [Assignor.FirstName] [Assignor.LastName] ​

​ [Assignor.Phone] [Assignor.Email] ​

​ [Assignor.StreetAddress] [Assignor.City] ​ [Assignor.State] [Assignor.PostalCode] ​

Contract Assignment Agreement Template

Prepared for:

​ [Assignee.FirstName] [Assignee.LastName] ​

​ [Assignee.Company] ​

​ [Assignee.Phone] ​

​ [Assignee.Email] ​

​ [Assignee.StreetAddress] [Assignee.City] [Assignee.State] [Assignee.PostalCode] ​

This Contract Assignment Agreement (hereinafter referred to as the "Agreement") made and entered on [Document.CreatedDate] , by and between:

Name: [Assignor.FirstName] [Assignor.LastName] [Assignor.Company] (hereinafter referred to as "Assignor"), and

Name: [Assignee.FirstName] [Assignee.LastName] [Assignee.Company] (hereinafter referred to as "Assignee"), and

Assignor and Assignee are hereinafter referred to as “Parties” collectively in this Agreement.

A. Assignor assigns and transfers the Assignee all of its rights, title, and interest in and to the contract, named (insert name of the original contract) (hereinafter referred to as the "Contract"), dated (insert date of the original contract), and expires on (insert the date when the original contract expires).

In consideration for the assignment, the Assignee will pay the Assignor the sum of (insert amount).

B. Assignor desires to assign the Contract to Assignee and Assignee desires to accept the assignment of the Contract.

C. The terms of this Assignment Agreement shall supersede the terms of the original Contract to the extent that there is any conflict between the terms of the original Contract and the terms of this Assignment Agreement.

This Agreement is subject to the following conditions:

Both Parties have all necessary rights and authority to enter into this Agreement and to assign the Contract to Assignee;

This Agreement does not and will not be construed to violate any agreement to which either the Assignor or the Assignee is a party or by which they are bound; and

Parties have had the opportunity to seek independent legal counsel prior to signing this Agreement and have either done so or have voluntarily waived their right to do so.

Indemnification

The Assignee agrees to indemnify and hold the Assignor harmless from and against any and all costs, losses, damages, claims, liabilities, and expenses (including reasonable attorneys' fees and costs) arising out of or in connection with any claims or suits based on allegations that arise.

Counterparts

This Agreement may be executed in counterparts (and by different Parties hereto on different counterparts), each of which shall be deemed an original, but all of which together shall constitute the same instrument.

Non-Transferability

Except as expressly provided in this Agreement, the rights and obligations of the Parties under this Agreement are not assignable or transferable, neither whole nor in part.

Termination

Subsequently, this Agreement may not be terminated except by mutual agreement of the Assignor and the Assignee. In the event of termination, any sums paid by Assignee to Assignor under this Agreement shall be reimbursed to Assignee within (insert number of days) of the termination of this Agreement.

Confidentiality

Assignee shall maintain all information regarding the Contract in the strictest confidence and shall not reveal such information to any person or entity without the express written consent of Assignor.

Governing Laws

This Agreement shall be governed by and construed under the laws of the State of [Assignor.State] ​.

Agreed and Accepted

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the date written below.

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Contract Assignment Agreement

Select the name of the state whose law will govern the interpretation of this contract and will be the location of any future disputes related to this contract. This is usually the state where at least one of the Parties resides or does business related to the contract. If this Agreement involves the transfer of land, this would be the state where the land is located.

CONTRACT ASSIGNMENT AGREEMENT

State of Alabama

This Assigment Agreement (the "Agreement) is entered into by and between ________ (the "Assignor"), having their principal address located at ________ , and ________ (the "Assignee"), having their principal address located at ________ , both of whom agree to be bound by this Agreement, in consideration of the mutual covenants herein contained and other good and valuable consideration, the sufficiency of which is hereby acknowledged, witnesseth:

WHEREAS , Assignor entered into a Contract, included as an attachment to this Agreement, with ________ (the "Obligor"), referred to hereinafter as "Contract with ________ ";

WHEREAS , the Contract with ________ has an original expiration date of ________ as may be extended as permitted therein;

WHEREAS , Assignor wishes to assign all of their rights and obligations under the Contract with ________ to Assignee; and

WHEREAS , the necessary verbal consent was obtained from the Obligor on ________ ;

NOW THEREFORE , Assignor and Assignee agree to the following:

I. Assignor and Assignee hereby agree that the Assignor shall assign all their rights, titles, and interests, and delegate all of their obligations, responsibilities, and duties, in ad to the Contract with ________ , to Assignee.

II. Assignee hereby accepts the assignment of all of Assignors obligations, responsibilities, and duties under the Contract and all of Assignors rights, titles, and interests in and to the Contract with ________ .

III. Notwithstanding the foregoing, Assignor agrees to defend and indemnify the Obligor from any and all claims,actions, judgments, liabilities, proceedings, and costs, including reasonable attorney's fees and other costs of defense and damages, resulting from Assignors performance prior to the assignment of the contract and resulting from Assignees performance after the assignment of the Contract with ________ , provided, however, that after the assignment of the Contract with ________ , the State shall first look to Assignee to satisfy all claims, actions, judgments, liabilities, proceedings, and costs, including reasonable attorneys fees and ot her costs of defense and damages resulting from Assignee's performance.

IV. Assignee agrees to indemnify the Obligor from any and all claims, actions, judgments, liabilities, proceedings, and costs, including reasonable attorney's fees, and other costs of defense and damages, resulting from Assignee's performance after the assignment of the Contract with ________ .

V. No modification of this Agreement shall be valid unless in writing and agreed upon by all relevant Parties.

VI. 52 252 28222 522 252888822 22 2588 825222222 88 5285 22 8285885, 8882258, 25 5222225825882 225 522 525822, 2522 252 2552828 52522 2552 8585 252888822 85588 82 522225 22 82 825582 525 252 522582525 22 252 825222222 85588 82 22225825 58 82 252 825582 252888822 8252 22825 82885525 82 252 825222222.

VII. This Agreement is governed by the laws of the State of Alabama and both Parties expressly consent to jurisdiction in such courts.

IN WITNESS WHEREOF, the Parties execute the Agreement as follows:

______________________________________________ ________

______________________________________________ Date

HOW TO CUSTOMIZE THE TEMPLATE

Answer the question, then click on "Next."

The document is written according to your responses - clauses are added or removed, paragraphs are customised, words are changed, etc.

At the end, you will immediately receive the document in Word and PDF formats. You can then open the Word document to modify it and reuse it however you wish.

Contract Assignment Agreement Free

The transfer of rights and obligations under the original contract from a party known as the Assignor to another party known as the Assignee is subject to this Contract Assignment Agreement.

Template Overview

The transfer of rights and obligations under the original contract from a party known as the Assignor to another party known as the Assignee is subject to this Contract Assignment Agreement. The party from the original contract called the Assignor can use this document to assign their rights under the original contract to the Assignee. He can also delegate their duties under the initial agreement to that Assignee. For example, a handmaid who was hired to clean her client's home but is no longer able to due to a move could assign their rights and responsibilities under the original service contract to a new handmaid.  

You fill out a form. The document is created before your eyes as you respond to the questions.

At the end, you receive it in Word and PDF formats. You can modify it and reuse it.

How to use this template

Before using this document, make sure that the assignment has all the necessary permissions from another party called the Obligor. The agreement contains important information about the identity of all the parties, the duration of the original agreement, and whether the Obligor's consent is required before the original agreement can be granted. If consent is required, indicate the form in which the Assignor obtained it and when.

If the Agreement involves a transfer of the land between parties, the document will include information on where the property is located, as well as for the document to be recorded in the county's official records, and the notary page customized for the land's location so that the material can be notarized.

The completed document should be signed, dated, and all Parties should keep a copy by themselves. If the Agreement concerns the transfer of the land, the Agreement is then notarized and taken to be recorded so that there is an official record that the property was transferred.

Applicable law

Common law in the Second Restatement of Contacts (the Restatement) governs the assignment of contracts that include the provision of services. The Restatement is a non-binding authority in all of U.S common law in the area of contracts and commercial transactions. Though the Restatement is non-binding, it is frequently cited by courts in explaining their reasoning in interpreting contractual disputes.  

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Assignment of Contract Agreement Template

• Contract Template

An Assignment of Contract Agreement Template is used when one party wants to transfer their rights and obligations under a contract to another party. This template helps to formalize the agreement and ensure all parties are aware of the transfer.

The assignment of contract agreement template is typically filed by the party who is assigning their rights or obligations under the contract to someone else.

Q: What is an Assignment of Contract Agreement? A: An Assignment of Contract Agreement is a legal document that allows one party to transfer their rights and obligations under a contract to another party.

Q: Why would someone use an Assignment of Contract Agreement? A: Someone would use an Assignment of Contract Agreement when they want to transfer their rights and responsibilities under a contract to another person or entity.

Q: What are the key elements of an Assignment of Contract Agreement? A: The key elements of an Assignment of Contract Agreement include the names and contact information of the parties involved , details of the original contract being assigned, the effective date of the assignment, and any conditions or restrictions placed on the assignment.

Q: Is an Assignment of Contract Agreement legally binding? A: Yes, an Assignment of Contract Agreement is legally binding as long as it meets certain legal requirements , such as the agreement being in writing and signed by all parties involved.

Q: What happens after an Assignment of Contract Agreement is signed? A: After an Assignment of Contract Agreement is signed, the rights and responsibilities under the original contract are transferred to the new party. The original party is usually released from any further obligations under the contract.

Q: Can any contract be assigned? A: Not all contracts can be assigned. Some contracts may have specific clauses that prohibit or restrict assignment. It is important to review the original contract to determine if assignment is allowed.

Q: Do I need a lawyer to draft an Assignment of Contract Agreement? A: While it is not required to have a lawyer draft an Assignment of Contract Agreement, it is recommended to consult with a lawyer to ensure the agreement is valid and enforceable.

Q: Can an Assignment of Contract Agreement be revoked or canceled? A: An Assignment of Contract Agreement can be revoked or canceled if all parties involved agree to do so. It is important to refer to the terms of the agreement or seek legal advice to understand the process.

Q: What if one party breaches the Assignment of Contract Agreement? A: If one party breaches the Assignment of Contract Agreement, the non-breaching party may have legal remedies available, such as seeking damages or specific performance through a court process .

Q: Is an Assignment of Contract Agreement the same as a Novation Agreement? A: No, an Assignment of Contract Agreement is different from a Novation Agreement. While both involve the transfer of contract rights and obligations, a novation agreement also transfers the original party's position as a whole, whereas an assignment agreement transfers only rights and obligations.

Download Assignment of Contract Agreement Template

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Understanding an assignment and assumption agreement

Need to assign your rights and duties under a contract? Learn more about the basics of an assignment and assumption agreement.

Get your assignment of agreement

by   Belle Wong, J.D.

Belle Wong, is a freelance writer specializing in small business, personal finance, banking, and tech/SAAS. She ...

Read more...

Updated on: November 24, 2023 · 3 min read

The assignment and assumption agreement

The basics of assignment and assumption, filling in the assignment and assumption agreement.

While every business should try its best to meet its contractual obligations, changes in circumstance can happen that could necessitate transferring your rights and duties under a contract to another party who would be better able to meet those obligations.

If you find yourself in such a situation, and your contract provides for the possibility of assignment, an assignment and assumption agreement can be a good option for preserving your relationship with the party you initially contracted with, while at the same time enabling you to pass on your contractual rights and duties to a third party.

An assignment and assumption agreement is used after a contract is signed, in order to transfer one of the contracting party's rights and obligations to a third party who was not originally a party to the contract. The party making the assignment is called the assignor, while the third party accepting the assignment is known as the assignee.

In order for an assignment and assumption agreement to be valid, the following criteria need to be met:

• The initial contract must provide for the possibility of assignment by one of the initial contracting parties.
• The assignor must agree to assign their rights and duties under the contract to the assignee.
• The assignee must agree to accept, or "assume," those contractual rights and duties.
• The other party to the initial contract must consent to the transfer of rights and obligations to the assignee.

A standard assignment and assumption contract is often a good starting point if you need to enter into an assignment and assumption agreement. However, for more complex situations, such as an assignment and amendment agreement in which several of the initial contract terms will be modified, or where only some, but not all, rights and duties will be assigned, it's a good idea to retain the services of an attorney who can help you draft an agreement that will meet all your needs.

When you're ready to enter into an assignment and assumption agreement, it's a good idea to have a firm grasp of the basics of assignment:

• First, carefully read and understand the assignment and assumption provision in the initial contract. Contracts vary widely in their language on this topic, and each contract will have specific criteria that must be met in order for a valid assignment of rights to take place.
• All parties to the agreement should carefully review the document to make sure they each know what they're agreeing to, and to help ensure that all important terms and conditions have been addressed in the agreement.
• Until the agreement is signed by all the parties involved, the assignor will still be obligated for all responsibilities stated in the initial contract. If you are the assignor, you need to ensure that you continue with business as usual until the assignment and assumption agreement has been properly executed.

Unless you're dealing with a complex assignment situation, working with a template often is a good way to begin drafting an assignment and assumption agreement that will meet your needs. Generally speaking, your agreement should include the following information:

• Identification of the existing agreement, including details such as the date it was signed and the parties involved, and the parties' rights to assign under this initial agreement
• The effective date of the assignment and assumption agreement
• Identification of the party making the assignment (the assignor), and a statement of their desire to assign their rights under the initial contract
• Identification of the third party accepting the assignment (the assignee), and a statement of their acceptance of the assignment
• Identification of the other initial party to the contract, and a statement of their consent to the assignment and assumption agreement
• A section stating that the initial contract is continued; meaning, that, other than the change to the parties involved, all terms and conditions in the original contract stay the same

In addition to these sections that are specific to an assignment and assumption agreement, your contract should also include standard contract language, such as clauses about indemnification, future amendments, and governing law.

Sometimes circumstances change, and as a business owner you may find yourself needing to assign your rights and duties under a contract to another party. A properly drafted assignment and assumption agreement can help you make the transfer smoothly while, at the same time, preserving the cordiality of your initial business relationship under the original contract.

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How to Draft an Assignment of Contract

Last Updated: January 23, 2022

This article was co-authored by Clinton M. Sandvick, JD, PhD . Clinton M. Sandvick worked as a civil litigator in California for over 7 years. He received his JD from the University of Wisconsin-Madison in 1998 and his PhD in American History from the University of Oregon in 2013. This article has been viewed 5,726 times.

A contract is an agreement between at least two parties—A and B. However, one party might want to transfer the contract to someone else. For example, B might want to assign its rights and obligations to C. Sometimes, a contract prohibits assignment, in which case B can’t assign the contract to anyone. In other contracts, the other party to the original contract (here Party A) must also agree to the assignment from B to C. If the contract allows assignment, then an assignment can take place once a proper assignment agreement has been created.

Starting the Assignment Agreement

• If you are printing the agreement on letterhead, make sure to leave enough room at the top.

• Sample language could read, “This Assignment (‘Assignment’), dated as of [insert date] (‘Effective Date’), is made between [insert your name] (‘Assignor’) and [insert the name of the assignee] (‘Assignee’).” [1] X Research source

• Sample recitals could read, “Whereas, Assignor entered into the following Contract with [the name of the party you contracted with, called the ‘obligor’] on [insert date of the contract] (‘Contract’); and whereas Assignor wishes to assign all of its rights and obligations under the Contract to Assignee. Now, therefore, Assignor and Assignee agree as follows.”

Granting the Assignment

• A sample grant could read: “Assignor and Assignee hereby agree that the Assignor shall assign all its title, right, and interest, and delegate all its obligations, responsibilities, and duties, in and to the Contract to Assignee.”

• “Assignee hereby accepts the assignment of all of Assignor’s obligations, responsibilities, and duties under the Contract and all of Assignor’s right, title, and interest in and to the Contract.”

• A sample modification provision could read: “This Agreement may only be modified if the modification is made in writing and executed by both Assignor and Assignee. No verbal agreement is allowed.”

• The assignor could agree to indemnify the obligor: “Assignor agrees to defend and indemnify [insert name of the obligor] from any and all claims, judgments, actions, proceedings, liabilities, and costs, including reasonable attorneys’ fees and other costs of defense and damages, resulting from Assignor’s performance prior to the assignment of the Contract and resulting from Assignee’s performance after the assignment of the Contract. However, after the assignment of the Contract, [insert name of the obligor] shall first look to Assignee to satisfy all claims, actions, judgments, proceedings, liabilities, and costs, including reasonable attorneys’ fees and other costs of defense and damages resulting from Assignee’s performance.”
• The assignee should also agree to indemnify the obligor: “Assignee agrees to indemnify the [insert name of obligor] from any and all claims, judgments, actions, proceedings, liabilities, and costs, including reasonable attorneys’ fees and other costs of defense and damages, resulting from Assignee’s performance after the assignment of the Contract.”

Finalizing the Agreement

• You could write, “This Assignment shall be construed and interpreted, and the rights of the parties determined by, the laws of the State of Maine (without regard to the conflicts of law principles thereof or any other jurisdiction).” [2] X Research source

• A sample clause could read, “If any part of this Agreement is declared invalid or unenforceable, the remainder of the Agreement shall continue to be valid and enforceable.” [3] X Research source

• Just above the signature line, insert: “In witness whereof, the parties have caused this Assignment to be duly executed as of the date first written above.” [4] X Research source

• If you don’t have an attorney, then you should contact your local or state bar association and ask for a referral.
• When scheduling the consultation, ask how much the attorney charges.

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• ↑ http://contracts.onecle.com/annies/baking-assignment-2014-03-20.shtml
• ↑ http://www.contractstandards.com/clauses/severability

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Assignment of Contract

Jump to section, what is an assignment of contract.

An assignment of contract is a legal term that describes the process that occurs when the original party (assignor) transfers their rights and obligations under their contract to a third party (assignee). When an assignment of contract happens, the original party is relieved of their contractual duties, and their role is replaced by the approved incoming party.

How Does Assignment of Contract Work?

An assignment of contract is simpler than you might think.

The process starts with an existing contract party who wishes to transfer their contractual obligations to a new party.

When this occurs, the existing contract party must first confirm that an assignment of contract is permissible under the legally binding agreement . Some contracts prohibit assignments of contract altogether, and some require the other parties of the agreement to agree to the transfer. However, the general rule is that contracts are freely assignable unless there is an explicit provision that says otherwise.

In other cases, some contracts allow an assignment of contract without any formal notification to other contract parties. If this is the case, once the existing contract party decides to reassign his duties, he must create a “Letter of Assignment ” to notify any other contract signers of the change.

The Letter of Assignment must include details about who is to take over the contractual obligations of the exiting party and when the transfer will take place. If the assignment is valid, the assignor is not required to obtain the consent or signature of the other parties to the original contract for the valid assignment to take place.

Check out this article to learn more about how assigning a contract works.

Contract Assignment Examples

Contract assignments are great tools for contract parties to use when they wish to transfer their commitments to a third party. Here are some examples of contract assignments to help you better understand them:

Anna signs a contract with a local trash company that entitles her to have her trash picked up twice a week. A year later, the trash company transferred her contract to a new trash service provider. This contract assignment effectively makes Anna’s contract now with the new service provider.

Hasina enters a contract with a national phone company for cell phone service. The company goes into bankruptcy and needs to close its doors but decides to transfer all current contracts to another provider who agrees to honor the same rates and level of service. The contract assignment is completed, and Hasina now has a contract with the new phone company as a result.

Here is an article where you can find out more about contract assignments.

Assignment of Contract in Real Estate

Assignment of contract is also used in real estate to make money without going the well-known routes of buying and flipping houses. When real estate LLC investors use an assignment of contract, they can make money off properties without ever actually buying them by instead opting to transfer real estate contracts .

This process is called real estate wholesaling.

Real Estate Wholesaling

Real estate wholesaling consists of locating deals on houses that you don’t plan to buy but instead plan to enter a contract to reassign the house to another buyer and pocket the profit.

The process is simple: real estate wholesalers negotiate purchase contracts with sellers. Then, they present these contracts to buyers who pay them an assignment fee for transferring the contract.

This process works because a real estate purchase agreement does not come with the obligation to buy a property. Instead, it sets forth certain purchasing parameters that must be fulfilled by the buyer of the property. In a nutshell, whoever signs the purchase contract has the right to buy the property, but those rights can usually be transferred by means of an assignment of contract.

This means that as long as the buyer who’s involved in the assignment of contract agrees with the purchasing terms, they can legally take over the contract.

But how do real estate wholesalers find these properties?

It is easier than you might think. Here are a few examples of ways that wholesalers find cheap houses to turn a profit on:

• Direct mailers
• Place newspaper ads
• Make posts in online forums
• Social media posts

The key to finding the perfect home for an assignment of contract is to locate sellers that are looking to get rid of their properties quickly. This might be a family who is looking to relocate for a job opportunity or someone who needs to make repairs on a home but can’t afford it. Either way, the quicker the wholesaler can close the deal, the better.

Once a property is located, wholesalers immediately go to work getting the details ironed out about how the sale will work. Transparency is key when it comes to wholesaling. This means that when a wholesaler intends to use an assignment of contract to transfer the rights to another person, they are always upfront about during the preliminary phases of the sale.

In addition to this practice just being good business, it makes sure the process goes as smoothly as possible later down the line. Wholesalers are clear in their intent and make sure buyers know that the contract could be transferred to another buyer before the closing date arrives.

After their offer is accepted and warranties are determined, wholesalers move to complete a title search . Title searches ensure that sellers have the right to enter into a purchase agreement on the property. They do this by searching for any outstanding tax payments, liens , or other roadblocks that could prevent the sale from going through.

Wholesalers also often work with experienced real estate lawyers who ensure that all of the legal paperwork is forthcoming and will stand up in court. Lawyers can also assist in the contract negotiation process if needed but often don’t come in until the final stages.

If the title search comes back clear and the real estate lawyer gives the green light, the wholesaler will immediately move to locate an entity to transfer the rights to buy.

One of the most attractive advantages of real estate wholesaling is that very little money is needed to get started. The process of finding a seller, negotiating a price, and performing a title search is an extremely cheap process that almost anyone can do.

On the other hand, it is not always a positive experience. It can be hard for wholesalers to find sellers who will agree to sell their homes for less than the market value. Even when they do, there is always a chance that the transferred buyer will back out of the sale, which leaves wholesalers obligated to either purchase the property themselves or scramble to find a new person to complete an assignment of contract with.

Learn more about assignment of contract in real estate by checking out this article .

Who Handles Assignment of Contract?

The best person to handle an assignment of contract is an attorney. Since these are detailed legal documents that deal with thousands of dollars, it is never a bad idea to have a professional on your side. If you need help with an assignment of contract or signing a business contract , post a project on ContractsCounsel. There, you can connect with attorneys who know everything there is to know about assignment of contract amendment and can walk you through the whole process.

ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.

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34+ SAMPLE Assignment of Contracts in PDF | MS Word

Assignment of contracts | ms word, 34+ sample assignment of contracts, what is an assignment of contract, what are examples of an assignment of contract, how to make an assignment of contract, why is an assignment of contract important, can assignments be not enforced, is assigning a contract the same as novating a contract.

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Step 1: review the original contract, step 2: identify the parties involved, step 3: specify the assignments, step 4: ensure all parties to sign the contract.

• The contract itself prohibits the assignment.
• The assignment is altered and already different from what to expect.
• The assignment violates any policy or law.

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