What Is Assignment of Contract?
An assignment of contract transfers a wholesaler's rights and obligations under a purchase agreement to a new end buyer, in exchange for an assignment fee — the mechanism most wholesale deals use to close.
Assignment of Contract vs. Double Closing
The wholesaler never takes title — they transfer their contract rights to the end buyer for an assignment fee.
The wholesaler briefly takes actual title in one closing, then resells to the end buyer in a second, separate closing.
Wholesalers use a double closing instead of an assignment when the fee needs to stay confidential or the original contract restricts assignment.
Related Terms
More Investing Terms
This definition is provided for general educational purposes and is not financial, legal, tax, or real estate advice. Verify important decisions with appropriately qualified professionals.
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