Assignment
Assignment in real estate means transferring your rights under a purchase contract to someone else — they step into your shoes and buy the property instead of you.
Real estate investors use assignment constantly. An investor gets a property under contract at $300K, then assigns the contract to another buyer for $315K. The investor pockets the $15K difference without ever actually buying the home. This is called “wholesaling.”
For regular homebuyers, assignment is less common — but it can come up.
How Assignment Works
The original buyer (assignor) and the new buyer (assignee) sign an assignment agreement. The assignee takes over all contract terms — same price, same contingencies, same closing date. The seller’s consent may or may not be required depending on what the contract says.
On a $350K home, the assignment might include an assignment fee — the difference between the contract price and what the new buyer pays. This fee goes to the original buyer, not the seller.
Can Your Contract Be Assigned?
Not always. Most standard residential purchase agreements include a “non-assignment” clause that prevents the buyer from transferring the contract without the seller’s written consent. Investors use specific contracts that explicitly allow assignment.
Watch out for: Wholesalers who assign contracts on properties they never intend to buy. Some wholesalers tie up properties with minimal earnest money, then market the contract to other buyers. If they can’t find one, they cancel during their contingency period. As a seller, this wastes your time. As a buyer taking an assignment, verify the property condition and contract terms carefully — and make sure the assignment is legally permitted. Your buyer’s agent can review any assignment deal.
Should I buy a home through an assignment?
If you’re buying from a wholesaler via assignment, you’re paying the contract price plus the assignment fee. Make sure the total still makes sense based on the home’s market value. Get your own inspection and run the numbers through our mortgage calculator. Assignment deals can be good opportunities, but they can also be marked up beyond market value. Check our glossary for related terms like subject-to and purchase agreement.