I found a great deal on a house and signed contract with a down payment of 10%. However I found out some bad news regarding my health. So I now have try to cancel the purchase. However I have a friend who is willing to take over the deal.
Is there any way I can transfer my deal to him? I could cancel and ask seller to sign a deal with my friend. However I'm very sure the seller is going to raise the price. I know the seller has been regretting his initial asking price… I don't want to buy then sell it to my friend since that incurs taxes & expense.
Its a long shot but I figured it wouldn't hurt to ask around.
(USA-NY) Is there any way transfer contract from one buyer to another?
byu/ChessBooger inRealEstate
Posted by ChessBooger
5 Comments
the standard real estate contract does not have a way to let you assign the contract to another party. YOu should read it carefully especially the first time in mentions your name. Look for the phrase “and/or Assigns” if it’s there you can assign it, if it’s not, you can’t most probably.
You should ask your lawyer for help with this.
It depends on the health stuff, but there are some reasons why it might make sense to proceed even with some issues. Also sorry, to have health issues that’s no fun.
You can buy it as a “couple”, and then dissolve it leaving only him. That will likely be allowed, though it gets complicated.
Check your contract for the following:
1. Assignment Clause-Search for the words “Assignment” or “Assignable.”
Common wording: Prohibited: “This contract may not be assigned by the Purchaser without the Seller’s prior written consent.” Allowed with consent: “This contract may be assigned only with Seller’s written consent, which shall not be unreasonably withheld.” Freely assignable: “Purchaser may assign this contract.” If it says “may not be assigned,” then it cannot be transferred unless the seller agrees.
2. Purchaser Definition-At the top, the buyer is usually defined as: “John Smith and/or assigns” this usually means it’s assignable. If it just says “John Smith” with no “and/or assigns,” then it depends on the assignment clause later in the contract.
3. Default / Remedies Section-Look at the section on what happens if the buyer defaults. If assignment is prohibited and they try anyway, seller may keep the deposit.
4. Special Rider Clauses (NY-specific)-In New York, contracts often include riders (extra pages with custom terms). Sellers sometimes add a rider saying “This contract is not assignable.” That clause overrides any general language.
In my state, the standard contract does have an assignment clause, and you could literally do a one page amendment that transfers the name over to them, you don’t even need the sellers permission to do it.
Basically what you’re looking for is an assignment clause in the contract