In a real estate contract, an assignment:
Correct Answer
B) Transfers the assignor's contractual rights to a third party
An assignment transfers the assignor's contractual rights to a third party (the assignee). Unless the contract expressly prohibits assignment, it is generally permitted. Importantly, unless the other contracting party agrees to a novation, the original assignor may remain liable under the contract even after the assignment. No Nebraska Real Estate Commission approval is required for a contract assignment.
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Related Topics & Key Terms
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Related Concepts
An option contract gives one party the exclusive right, but not the obligation, to purchase or lease a property at a specified price within a specified time period. The buyer pays option consideration to keep the option open.
A purchase agreement is a legally binding contract between a buyer and seller that outlines the terms and conditions for the sale of real property. It is also commonly called a sales contract, purchase and sale agreement, or earnest money agreement.
Specific performance is a court-ordered remedy that compels the breaching party to fulfill their obligations under the contract rather than simply paying monetary damages. It is an equitable remedy used when monetary damages would be inadequate.
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