Legal Question in Real Estate Law in California
Hello,
We have closed multiple transactions and have never had this issue come up so I'm seeing if anyone can provide some direction.
Description of the issue:
Had a property under contract for $215k in San Bernardino California
Found a buyer willing to pay $230k ($15k would be paid to us as an assignment fee)
Assignment agreement signed by all parties saying that at the time of closing $15k would be sent to us
Buyer sent in $10k EMD and expected to close within a few days
Buyer then attempted to renegotiate the deal by asking for it at $205k, knowing that we had it under contract for $215k.
Buyer stated that they were not moving forward however they went behind our backs and closed the transaction for the $215k price that we negotiated and had under contract but assigned to them with the assignment agreement in place.
Escrow knew about the assignment fee agreement and even had it at one point written in the escrow instructions and had it on the HUD.
1 Answer from Attorneys
Once you assign the contract, control of the transaction goes to your assignee. They can renegotiate anything they want. That does not, however, change your entitlement to the assignment fee. Without knowing more about the exact terms of the assignment agreement and following the escrow holder's documentation, I can't really tell you any more than that.
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