There is no doubt we are going through a crazy real estate market. Over the last 18-24 months, property was selling before the realtor could put it in the Multiple Listing Service (MLS); interest rates were low as was the supply of available property. Over the last three weeks I have seen several sales cross my desk that caught my attention. The contract buyer wanted to assign his/her right to another buyer.
The assignment of contracts has been around for a long time and quite frankly, is more common than most people realize. For buyers, it is usually a good vehicle for realizing a quick profit or a way to place the property under a corporate entity. There are very few pitfalls for the buyer. The seller on the other hand, has to be very careful to protect his/her legal and contractual rights. Some of the items sellers need to consider pertain to whether or not to release the original buyer from liability, what happens to the escrow deposit, does the assignment alter the time of performance contained in the contract, etc.
Without knowing ALL the facts of an assignment might place you, the seller, in a legal quagmire and prolong your closing. In my next column we will examine the pitfalls and explain how to structure a valid assignment of contract.
Sand Key Realty would like to say Thank You to our clients and staff for continuing to make Sand Key Realty the #1 real estate company on Clearwater Beach and Sand Key with over $268,000,000 in sales for 2005.
Ric Cornelius is the Broker/Manager of Sand Key Realty Sales and Rentals, Inc. Sand Key Realty has three offices with 40 agents. One office is at 740 S. Gulfview Blvd., Clearwater Beach, 727-443-0032; the second office is at 2701 Gulf Blvd., Indian Rocks Beach, 727-595-5441; and the third office is at 309 Belleview Blvd., Belleair, 727-461-4200.