Assignor
Definition and meaning of Assignor in real estate.
An assignor is a person or entity that transfers their legal rights, interests, or obligations under a contract to another party.
In more detail
In a real estate transaction, the assignor is the original buyer who decides to pass their purchase agreement to a new buyer before the closing date. The assignor initiates the transfer by executing an assignment agreement with the new buyer, who is called the assignee.
When this happens, the assignor typically charges an assignment fee to the assignee for giving up their position in the deal. However, the assignor remains responsible for ensuring the transaction closes if the assignee defaults, unless the seller executes a release of liability.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Opposite party | Assignee |
| Primary risk | Remaining liable if the assignee defaults |
| Common use | Wholesaling and pre-construction sales |
A buyer signs a contract to purchase a pre-construction condominium unit, but later decides to act as the assignor by transferring his contract rights to a new buyer before the building is completed.
Frequently asked questions
What is the main difference between an assignor and an assignee?
The assignor is the person who transfers the contract rights, while the assignee is the person who receives those rights and assumes the role of the buyer.
Can an assignor make a profit from a contract transfer?
Yes, the assignor often charges the assignee an assignment fee, which represents the profit made by securing the contract at a favorable price.