An assignment of contract is when the buyer on a real estate purchase contract transfers their rights and obligations to a new buyer, usually for a fee paid at closing. The seller still sells at the original price; the new buyer steps into the contract. It only works if the contract allows assignment and local law is followed.
Educational only. This explains how these situations generally work. It is not legal, tax or financial advice, and the rules differ by state — talk to an attorney or CPA about your own situation before you act on any of it.
When you sign a purchase contract as the buyer, you get an equitable interest: the right to buy that property on those terms. An assignment transfers that right, along with your obligations, to someone else. You are not selling the house, because you do not own it. You are selling your position in the contract.
Three parties are involved. The seller signed the original contract. The assignor is you, the original buyer. The assignee is your end buyer, who closes with the seller at the original contract price and pays you an assignment fee, usually through the title company at closing.
One point that surprises newer wholesalers: assigning a contract does not always release you from it. Unless the seller signs a release, you may remain responsible if your assignee fails to close. That is one reason to vet end buyers carefully and collect a real deposit from them.
Educational only — talk to a real estate attorney in your state before you rely on this.
Whether you can assign starts with the purchase contract. Wholesalers usually write the buyer as “[Your Company] and/or assigns” and include a clause stating the buyer may assign the contract without the seller's consent. Some contracts say nothing either way; in many states a contract that is silent can generally be assigned, but relying on silence is how deals end in arguments at the closing table. Put it in writing.
Some contracts expressly prohibit assignment. Standard forms used for bank-owned (REO) sales, government-owned homes and many short sales commonly do, and some state association forms require the seller's consent. If your contract bars assignment, an assignment is not your exit; a double close may be, or it may not be allowed either. Read the contract before you market anything.
Several states now also require that the seller be told in writing, before signing, that you intend to assign. More on that below, because a missing disclosure can let the seller cancel.
The assignment agreement is the short contract between you and your end buyer. A solid one covers:
Send the signed agreement to the title company the same day. Title needs it to prepare the settlement statement and to know who is actually closing. Our transaction coordination team prepares and tracks this paperwork for wholesalers who would rather spend their time finding the next deal.
Say you have a contract to buy a house for $140,000 and you put up $1,000 in earnest money. You assign it to a cash buyer for a $15,000 fee, and the buyer puts $5,000 down with title when they sign the assignment. Ignoring closing costs and prorations for clarity:
| Line | Buyer (assignee) | Seller | You (assignor) |
|---|---|---|---|
| Contract price | Pays $140,000 | Receives $140,000 | — |
| Assignment fee | Pays $15,000 | — | Receives $15,000 |
| Your original EMD ($1,000), already at title | Credited $1,000 toward price, charged $1,000 to reimburse you (nets to zero) | Counts toward the $140,000 | Reimbursed $1,000 |
| Assignee's deposit ($5,000) | Credited $5,000 | Counts toward the $140,000 | — |
| Net | Brings $150,000 at closing ($155,000 total with deposit) | $140,000 before costs | $16,000 ($15,000 fee + your $1,000 back) |
The buyer's total cost for the house is $155,000 — that is the number they underwrote against ARV, not $140,000. The seller gets exactly what they agreed to. Your $1,000 deposit, which sat at title as part of the purchase, comes back to you.
Title companies itemize all of this on a settlement statement; ALTA publishes the standard forms most of the industry uses, including a cash version and a combined buyer-seller version (ALTA settlement statements). On a combined statement, the seller can see your fee. Some title companies prepare separate buyer and seller statements, but you should assume your fee is visible and be ready to explain it. If fee privacy truly matters on a given deal, compare the costs of a double close in our guide on double closing vs. assignment.
Most failed assignments fail for predictable reasons:
A number of states passed wholesaling rules recently. Based on a summary by Leonine Public Affairs (new state laws for real estate wholesaling):
Several other states and cities have passed or are considering rules, and some treat repeated wholesaling as activity that requires a license. Check current law where the property sits before you sign, and read our guide on whether wholesaling is legal for how the license line is usually drawn.
The practical takeaway works everywhere: disclose in writing, up front, that you may assign the contract and earn a fee. Sellers who know the plan do not feel tricked at closing, and a deal that cannot be rescinded is worth more to every buyer you market it to.
Educational only — talk to a real estate attorney in your state before you rely on this.
Restar Acquisitions is a family-owned principal buyer of single-family homes, and we take assignments in the markets on our Where-we-buy page. We close in our own name as the assignee, and we are fine with your fee showing on the statement — you earned it.
When you submit a deal, include the purchase contract so we can confirm it is assignable and see the inspection and closing dates. Trevor McAmis underwrites it personally and we reply the same business day. Our screen: contract price plus repairs at or under 78% of ARV fits, up to 85% is close, and above that we tell you the price that would work. The form on the submit-a-deal page shows that verdict as you type.
What we will not do: take an assignment on a contract that bars it, close a deal where a required seller disclosure was skipped, or give legal advice about your contract. We are buyers, not attorneys.
Send us the contract. We reply the same business day with an offer or a clear reason we are passing. Submit a deal.
All wholesaler services · Submit a deal · Get help with the paperwork · Double closing vs. assignment
Keep reading: What Is Dispo in Real Estate? The Wholesale Dispositions Guide · How to Dispo a Wholesale Deal Fast · Selling a Wholesale Contract to a Direct Buyer vs. a Buyer List
