Legal Question in Real Estate Law in California
Assignee (and/or) on Real Estate Contract
Under buyer name in offer to purchase in California it states a proper name ''and/or assignee''. How should this be handled by listing agent considering the offer?
2 Answers from Attorneys
Re: Assignee (and/or) on Real Estate Contract
It is a curious addition to the signature line. In my opinion, it does not add anything to the agreement. Unless otherwise prohibited in agreement, most non-service contracts, including real estate purchase agreements, are assignable. If you�re using CAR forms for residential purchase, I do not believe there is any prohibition against buyer assignment of contract rights during escrow. Upon assignment, assignee would need to meet the obligations and contingencies of original buyer.
From a practical standpoint, I recommend that the listing agent inquire from buyer (or more precisely, the buyer�s agent) about the �and/or assignee� language. If he/she does not get a satisfactory explanation and you have concerns about buyer�s possible maneuvering during escrow, you can have an assignment consent provision inserted into your acceptance/counteroffer.
If you have any further questions, please not hesitate to contact my office for further assistance.
[Please be advised that the statements and opinions provided above are an informational service to the general public. Since this reply is based upon an incomplete description of facts, this email should not used as a substitute for legal advice from a qualified and fully-informed attorney. Moreover, these communications are intended for use by the public. As such, this email does not constitute an confidential communication nor does it create an attorney-client relationship with Lynes & Associates or any of its members.]
Re: Assignee (and/or) on Real Estate Contract
This is not unusual. The offeror is expressing his intention to have another party actually take title.
One example of where this is done is when a developer is acquiring a parcel of land for development, and makes the offer in his own name, but if successful in buying the land, intends to take title in the name of a to-be-formed development entity, often an LLC, formed for that particular project.
The seller is protected against loss because, unless the purchase price is paid in full by someone (the offeror, the assignee, and/or their lenders), the deal won't close. The main circumstance in which one might want to make inquiries about the proposed assignee is if the deal is not all cash and the seller is being asked to carry paper. In that case, the credit of the party taking title may become an important consideration.
You'll need to have a written assignment prior to close of escrow; the escrow holder probably has a form or a way to include the assignment in its closing instructions.
Related Questions & Answers
-
Quick claim deeds What is a quick claim deed Asked 1/15/07, 10:18 pm in United States California Real Estate and Real Property