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ContractsAssignmentMEDIUM

When a buyer assigns a real estate purchase contract to a third party, this generally:

Correct Answer

B) Transfers the buyer's contractual rights to the assignee

Assignment transfers the assignor's (buyer's) contractual rights to the assignee (third party). Unless the contract expressly prohibits assignment, it is generally permitted. Importantly, assignment does not automatically release the original buyer from liability unless the seller agrees to a novation.

Answer Options
A
Is prohibited unless expressly permitted by Iowa law
B
Transfers the buyer's contractual rights to the assignee
C
Automatically releases the original buyer from all obligations
D
Requires prior approval from the Iowa Real Estate Commission

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Related Topics & Key Terms

Related Topics:

novationcontract rights and obligationsIowa Real Estate Commission authorityearnest money and contract termsprivity of contract

Key Terms:

assignmentnovationassigneeassignorsecondary liabilitycontract rightsIowa Real Estate CommissionIREC
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