When a buyer assigns a real estate purchase contract to a third party, this generally:
Correct Answer
C) 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.
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Related Topics & Key Terms
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Related Concepts
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.
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
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