What Is an Assignment in Real Estate?

A real estate assignment is when a buyer transfers their rights in a purchase agreement to another buyer—before closing. It’s most common in wholesaling or investor deals where the original buyer finds a new buyer to complete the purchase for an assignment fee.

✅ How an Assignment Works

  • Buyer signs a contract: The buyer (assignor) signs a purchase agreement with the seller.
  • Contract is assigned: The buyer transfers their rights to another buyer (assignee) using an assignment contract.
  • New buyer closes: The assignee completes the purchase, and the original buyer receives an assignment fee.

Assignments allow flexibility for investors while keeping the seller’s original terms intact.

💡 Why Assignments Matter in Real Estate

Assignments let investors profit without purchasing the property themselves. For FSBO sellers, it’s important to understand who’s truly buying the home and ensure transparency before closing.

  • Creates flexibility in investment deals
  • Helps sellers reach a wider network of cash buyers
  • Ensures deals can move forward even if the first buyer can’t close

📍 What FSBO Sellers Should Know

If an offer includes the phrase “and/or assigns,” ask whether the buyer plans to assign the contract. You can approve, restrict, or decline assignment rights before signing. Brokerless helps FSBO sellers stay in control—whether the buyer is direct or working through an investor.

🧩 Common Misunderstandings

  • “Assignments change the seller’s terms.” ❌ The original contract remains intact; only the buyer changes.
  • “Assignments are illegal.” ❌ They’re legal in most states when disclosed properly.
  • “Sellers can’t refuse assignments.” ❌ You can—just include “no assignment” language in your agreement.