During the processing of a real estate sale transaction, the settlement agent may receive an assignment of the purchase agreement to a new buyer. The principals to the transaction will then change. The transaction will involve the seller/property owner and a buyer/assignee. The original buyer/assignor is no longer a principal to the transaction.
If a settlement agent is presented with an assignment of a buyer’s right title and interest in a purchase agreement, the purchase agreement must be reviewed to determine how to proceed. There are four possibilities:
- The agreement may prohibit an assignment to the new buyer.
- The agreement may name a purchaser and state “and/or assigns.”
- The agreement may allow for an assignment to a new buyer as long as the seller gives their written consent; or
- The agreement may fully address future assignments and provide the seller’s consent at the time the agreement is signed with no need for future seller consent once the ultimate buyer is found.
The assignment agreement also