When selling your home, especially in as-is condition or when looking for a quick cash offer, you may encounter buyers who are investors. These investors often write purchase contracts that include something called an “assignment clause.” If you’ve ever wondered, “If I sell my house to a cash home buyer, can they assign the purchase contract to someone else?” the answer is generally yes—but with some important details to understand. If there is no assignment clause, a cash home buyer may add the phrase “and/or assigns” after their name in the contract.
What is an Assignment Clause
An assignment clause allows the buyer to transfer their rights in the purchase agreement to another party. This means the original buyer may not be the one who actually closes on the property. Instead, they can “assign” the contract to another investor or end buyer who will step in and complete the transaction. For many real estate wholesalers and investors, this is a common practice. It helps them secure properties and then line up another buyer, often for a profit.
Here’s the simple version: when a buyer “assigns” a contract, they’re passing along the right to buy your home to someone else. This usually happens with investors or wholesalers who put your house under contract, then connect with another buyer who actually closes the deal. In most cases, the price, terms, and timeline you agreed to stay exactly the same—you’ll still walk away with the amount you were promised.
Now, you might be wondering, “Why would a buyer do this instead of just closing themselves?” For investors, it’s a way to match houses with other buyers, like flippers, landlords, or other investors who want the property. Think of it as them being a middleman. The end result for you is usually the same: your house gets sold, and you get your cash.
What is a Wholesaler
A wholesaler is a real estate investor who often times does not have the cash to close a cash deal themselves. They get a house under contract, often with a long due diligence period, and since they don’t have the cash to close, they look to sell the home purchase contract to another investor. Since they often don’t have the cash to buy your home for cash, the long due diligence period allows them to back out of the deal if they don’t find another cash home buyer. If they do have the cash, which isn’t often, they will close on your house and then have another investor come into the closing right after you leave and close with them for a higher price. Here is an article about wholesalers and other cash home buyers Who typically buys homes as-is in Augusta, GA: Investors, Flippers, or Regular Buyers?
Is Assignment Legal?
From a seller’s perspective, this might sound a little concerning. You may have thought you were selling your home to a specific individual or company, only to find out later that someone else is actually purchasing it. The good news is that, in most cases, the contract will still be valid, and the agreed-upon terms—such as purchase price and closing timeline—will remain the same. The new buyer who takes over the contract is bound to those same obligations. Here is more information about all the legal aspects of selling you house for cash Understanding the Legal Aspects of Selling Your Home for Cash
How to Protect Yourself
That said, it’s always smart to read the contract carefully. Not every agreement allows for assignments, and some sellers choose to include a “no-assignment” clause to prevent this from happening. If you’re not comfortable with your buyer transferring the contract, you can request that the clause be removed or modified. This way, you know exactly who you’re working with from start to finish.
Are There Benefits?
There are also benefits to allowing assignments. When a buyer has the ability to assign the contract, it can increase your chances of closing, since the buyer has more flexibility to find someone who can follow through. If your top priority is selling quickly and without repairs, an assignment clause can sometimes make that happen more efficiently.
Selling your home to a cash buyer who has the right to assign the purchase contract isn’t necessarily a bad thing—it’s simply part of how real estate investing works. As long as you review the contract, understand the terms, and make sure your interests are protected, you can feel confident moving forward. If you’re ever unsure, it’s wise to consult with a real estate attorney before signing. That way, you’ll have peace of mind knowing exactly what to expect from the sale.
Make sure you are working with the right cash home buyer. Cash home buyers pay cash for your house and close fast. If you are looking to sell your house fast in as-is condition, cash home buyers can be a great option.
At the end of the day, the key is knowing what’s in your contract and feeling confident about who you’re working with. If something doesn’t sit right, don’t hesitate to ask questions—or even have a real estate attorney look it over. Selling your house is a big step, but with the right buyer and clear communication, the process can be smooth and stress-free.
