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Written by : Cherly Christman
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the purchase agreement is between you and the seller the assignment is between you and the cash buyer we have an iPad you could bust this out or something okay here we go here we go here we go you explain it so I've got the seller right you got you and a seller that's an A B purchase contract okay so a is the seller yeah you're a b because this is the wholesaler put WS right okay so that's the wholesaler okay so this is the seller what happens a seller and the wholesaler go into a contract that's called the purchase and sale agreement okay so we signed a contract and that contract is called a PSA a purchase and sale agreement right right also known as an A B contract oh because this is party a and this is party B A to B it purchase contract love it and so this is a wholesaler now where does an assignment contract come in play so once wholesaler sells property or finds a cash buyer that wants to purchase the property he needs to transfer that PSA the power of the PSA to somebody else this video is brought to you by PCS do yourself a favor and make sure you have proper corporate structure click the link in the description to make sure that you're not just a person you're a business now stop watching me and go watch me and the document that's used to transfer the purchase and sale agreement to another person is called an assignment and who are we assigning it to your cash buyer okay so the buyer is putting him seeing okay so this contract that you guys are signing is called an assignment right yeah I'll just call it an ass for short okay now here's the thing that a lot of people are missing is you take both of these documents where do these documents go Jamil they all go to the title company okay so the title company or depending on the state this could be a closing attorney right yep title or attorney depending on the state and so the title company is going to look at your purchase and sell agreement and they're going to look at your assignment agreement and they're going to see okay well there's the A to B contract perfect and they're going to be happy about that and then they're going to see the b2c contract and they're going to see exactly how much you stand to make between the two documents right yes sir amazing thanks for watching another one of my YouTube videos now it's your turn to go out and take some action but before you do like and subscribe to my channel because the law of reciprocity means you owe me
Thanks for your comment Robbyn Menesez, have a nice day.
- Cherly Christman, Staff Member
what's up YouTube is Matthew here and welcome back to my channel in today's video I'm going to show you all the exact contracts I use in my wholesale real estate business I've been getting some DM some comments from you all just AK seen where do I get my contracts from how to fill out a purchase and sales agreement how to fill out an assignment on contract agreement and I have these links for you all these contracts for you all in the links down below so you're walking download it and edit it to your preference according to your county rules and regulations and different things like that and so if you all want to see what I use and just use them for yourself click on the links down below so another thing I would like to say is that just talking about contracts every state and county is different right here I'm in Tennessee we use title companies you may use just attorney so it may be different in your state and also you may have to include certain things in your contracts that I don't necessarily have to include so make sure you're aware of your rules and regulation where where you live that so I'm just going to go over the contracts how to fill in them out and just be sure to LIKE this video by liking this video as you all know this channel grows it becomes more discoverable on YouTube thank you all for the support it's crazy man we're over 1,700 subscribers so let's keep on growing and yeah just comment down below if you all have any questions about these contracts or anything else like that so let's just get right to the purchase and sales agreement right here so this is just my purchase a sales agreement it's a simple one-page cash purchase contract that I use with my sellers and of course you know when I'm talking to my sellers I try not to use the word contracts that's why I've been learning and whatnot because contracting can feel very binding which it is but it can feel like almost too aggressive sometimes for some sellers so you can use the word like agreement or documents I'm sending over you the paperwork and different like that so right here I just have purchase and sales agreement I have to date the sellers name and then my name so this is where I usually put my name or my LLC name and then the first part says this is a contract person sales agreement real estate located in and right here usually I always put the county that I'm in so let's say for example Cook County I know that's in Illinois as you want her you just hurt mine foamed so Cook County IL something like that if you're typing it up in your sending on to DocuSign you can you know just type it up but usually if I'm in person I just write it in so I have enough space to write in the county and whatnot sometimes I go to two different counties for my sellers or property and then right here users have the property description street address the city state and zip code you know legally you need all this information recently I was just I got a contract signed and I I forgot to put the the city and state and zip code I only put the address I don't know why I did that but you know got that correct I just full today and then this is legal description so this is really good for your title company so they can legally see where exactly the property lines are at for this property and you know so they can look up the county records on this property and then right here you have your price by Europe a blink seller will only accept funds pay by cash your check or wire transfer so just saying here the the property price that you and seller agree upon and then that is it's a cash purchase that you're purchasing this property in cash and another thing about price is that when I'm typing it I usually bold these numbers so it's for example if it's a hundred thousand dollars something like that you know I make sure it's bold and I kind of increased the font a little bit you know so they can be aware of the price or whatnot you know so it's right there that we all agree upon something like that and then when you're typing in a just type it in I mean when you're writing in an in person you can just write it in and the payment you know this is a cash purchase no financing and a title sell or transfer marketable title to property by warranty d cellular clear all liens and comers from the title with the exception of unpaid taxes so that's basically saying that you know once we get the title search done all everything included in the search you know if there's any like unpaid taxes you know on the seller will be in charge of that and that they're being clear of this title once all this is paid and then right here we have closing buy rule pay all closing fees basically right here sell or pay any liens judgments against the property yeah and just going back to your pain like closing costs but if there's any mortgages or liens or judgments on the property that is the sellers responsibility and so you can make that known in person talking to them and just reassured and refer them in the contract this is also in the contract and then right here we have the closing date you know you could put your date 30 days so for example today is May 14th you can you can say okay from on or before June 14th is if you usually can close within 30 days or you know with this pandemic happen II may be double that you may have to put July 14th and yeah it's just that deed and it's just saying that the deed possessions are not you know delivered to the buyer by closing the purchaser would be null void so if it goes past this date then you have to make another contract in cancellation so this is a really good cancellation clause you know most of the time you want to be able to put under contract properties that you know for sure you have a buyer for and I know that can be hard especially in your beginning stages as a whole seller and so that's why I do have the cancellation clause so saying hey I have the right to terminate this agreement I can cancel only by delivering written notices cancellation before the right whichever is earlier and so basically is the saying I have the right for whatever reason to cancel out this deal and then disclosure each party represents the self i represents itself exclusively different things like that and so by the way this purchase and sales agreement is just a template I got online I think the websites like wholesale your tool box so this is not my own necessarily I did edit it to my preference but yeah so I'm not like super good at these legal terms whatnot and then assignment so right here I have a separate clause some people don't even have an assignment clause Isis put and/or assigns like right here--like and or assigns buyer which is fine which is still legally good you can still legally assign that contract but I just like to just put it on the forefront like hey you know I can assign this this contract and so I put a separate class on that so I said buyer has an unqualified right to assign its rights under the under this contract to a third party and I don't have to notify the seller about this and an assignment will release the original buyer from this contract and then s
Thanks Oren your participation is very much appreciated
- Cherly Christman
About the author
I've studied lagrangian mechanics at Southwestern Assemblies of God University in Waxahachie and I am an expert in magnetism. I usually feel okay. My previous job was parts salesperson I held this position for 17 years, I love talking about fencing and camogie. Huge fan of Queen Latifah I practice bobsleigh and collect clothing and accessories.
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