assignment of contract

Definition

The legal sleight of hand where a buyer transfers their purchase contract to another buyer before closing, often used by wholesalers who never intended to own the property. It's contract flipping without the renovation show.

Example Usage

I'm wholesaling this property through an assignment of contract—found a cash buyer willing to pay 30k more than my contract price.

Origin

Standard contract law principle applied to real estate, became prominent with rise of real estate wholesaling in the 2000s

Fun Fact

Many sellers now include 'no assignment' clauses in contracts specifically to prevent wholesalers from flipping their contracts for profit without adding value.

Source: Real estate wholesaling terminology

Related Terms

Beginner

walking the comps

The noble art of physically visiting comparable properties to verify that online photos haven't been taken with a fisheye lens from the ceiling. It's due diligence for agents who don't trust Zillow's measurements or the laws of physics.

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Advanced

assemblage

The art of secretly buying adjacent properties to combine into one larger, more valuable parcel—like playing real estate Tetris with someone else's neighborhood. It's why some buyers use LLCs to hide their acquisition strategy.

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Intermediate

conservancy

An organization dedicated to preserving natural resources, land, or historical sites through acquisition, management, and protective agreements—basically wealthy nature lovers buying up property so developers can't turn it into strip malls. These groups use conservation easements, donations, and purchases to maintain ecosystems, wildlife habitats, and scenic areas. It's environmentalism with a real estate portfolio.

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Beginner

coming soon

A property marketing status indicating a listing will be active shortly, used to generate buzz and pre-market the property before it officially hits the MLS. It's the real estate equivalent of a movie trailer, complete with the same level of hype.

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Beginner

setbacks

In real estate, the legally mandated buffer zone between your dream home and the street—because apparently neighbors don't trust you to build right up to the sidewalk. This zoning requirement ensures adequate spacing for utilities, pedestrian safety, and keeping your McMansion from literally looming over passing joggers. Think of it as the government's way of forcing you to have a front yard whether you want one or not.

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Advanced

negative amortization

When your mortgage payment doesn't cover the interest due, causing your loan balance to actually increase over time. It's like running on a treadmill that's going backwards—you're making payments but falling deeper into debt.

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