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An assignment of contract takes place on a property that is presently under contract and has not yet been purchased. The assignor first finds a property and enters into a sales agreement with the buyer to purchase the property. When the original buyer finds a new buyer who can fulfil the contract's original terms, the contract gets assigned to a new buyer. At this time, the assignor generally collects an assignment fee for finding someone to carry out the contract terms.
In real estate, an assignment fee denotes the money a wholesaler can expect to receive from an end buyer when they sell them their rights to purchase the subject property. To put it simply, an assignment fee is a monetary compensation awarded to the wholesaler connecting the original seller with the end buyer.
A double closing or back-to-back closing occurs when an investor purchase a property only to resell it relatively quickly without rehabbing it. Unlike an assignment of the contract, a double closing witnesses the investor take legal possession of the property. Thus, the investor will show up on the chain of title and be required to pay the expenses that have become synonymous with purchasing and selling properties.
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