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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, assignment does NOT automatically release the original assignor from liability β€” the assignor typically remains secondarily liable unless the other party expressly agrees to release them.

Answer Options
A
Is prohibited in all real estate contracts
B
Transfers the assignor's contractual rights to a third party
C
Automatically releases the assignor from all obligations
D
Requires approval from the Maine Real Estate Commission

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Related Topics & Key Terms

Related Topics:

novation-comparisonanti-assignment-clausewholesale

Key Terms:

assignmenttransfers rightsnot releaseanti-assignment
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