Did you know.... if you assign a contract the first buyer may still be liable

Very often people will write an offer on a property and then change the buyer either by adding a spouse or changing the buyer completely to another person or a company. This is often done in a "rent to own" arrangement where the renters and future owners assign the offer to the investor after they have found a house they want. However, contrary to popular belief the original person is not off the hook for all the obligations of the contract unless there is documentation that indicates that the seller has released the original buyer of all reponsibilities, representaions, warranties etc. under the original contract. This requires special wording. Usually this wording is not put into the assignment. If for some reason the person the contract was assigned to decides not to close the deal, the first person is still liable. This is another great reason why using a REALTOR is the safest way to purchase Real Estate of any kind.  

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