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Signature service assignment agreement

hey they're modern broker agents I want to touch on a topic that's come up lately regarding the RPA the residential purchase agreement or any contract for that matter but we'll focus on the RTA today we've seen a couple contracts come through that say the buyers name or assigns so Joe buyer or assigns on the actual offer and I guess I want to talk about that real quickly and explain how an agreement how and when an agreement can be assigned so I'm gonna jump into zip forms here in a second and we're gonna take a look at the RTA and I want to show you real quick what the contract says about a sign ability so first things first we scroll to the end of the contract it does address it in section 26 so section 26 of the AR PA says buyer shall not assign all or any part of buyers interest in this agreement without first having obtained the separate written consent of the seller to a specific assignee such consent shall not be unreasonably withheld any total or partial assignment shall not relieve the buyer or buyers obligation or buyers obligations pursuant to the agreement unless otherwise agreed in writing by seller Carr form a Oh a a so essentially writing on the front of the contract or a signs really is kind of makes it a little bit convoluted because further down in the contract it says that it has to be a specific assignment so not really valid any assignment really needs to be agreed in writing with an addendum in and let me show you the actual addendum that's used we see oftentimes buyers getting added to contract for various reasons which we would call a partial assignment using a regular addendum and that's really not the form you want to use let me show you why so there is a forum called the assignment of agreement addendum and you're gonna use this particular form anytime you're going to be adding a buyer which we sometimes see for you know loan qualification reason reasons or if you're substituting a whole buyer you would use this here so number one says partial assignment buyer is adding the assignee named below to the agreement and granting the such assignee a partial interest in the agreement and so that would be where you would put the person's name that you're adding or total assignment buyer is assigning all of buyers interest in the agreement to the new or remaining buyers named below so this could be used for you know deleting a buyer off the contract or completely substituting the buyer so this is the contract you want to use and one of the reasons why you want to use this is that it offers a little more protection than a one-sentence on an addendum in this section here it says essentially that the assignee acknowledges that the buyer has already provided an assignee all of the transaction documents previously approved by the buyer including but not limited to all contract documents inspection reports pamphlets advisories and disclosures and the assignee within three days after seller delivers to assignee a signed copy of this agreement of assignment of agreement addendum shall initial sign and deliver to seller all prior documents so essentially it puts a timeline on them reviewing the contract reviewing all the disclosures signing them all and getting them back to you so once again just kind of recapping agreements that are written as Joe buyer or assigns really are not essentially valid without the approval of the seller so and you want to use the assignment of agreement addendum for those types of assignments so hopefully that clears up some of the confusion we do see that occasionally that verbiage written in a kind facts from investors people like that so just wanted to kind of touch on it a little bit we also see buyers getting added to contracts all the time on a net on a standard addendum with one sentence that basically says this buyer is being added really isn't enough to protect the seller in that case so let's use the assignment of agreement addendum going forward so hopefully this was a good tip for you and we'll have more coming soon