What is needed in a legal contract when investing in real estate by assigning contracts to other investors for a profit?
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What is needed in a legal contract when investing in real estate by assigning contracts to other investors for a profit?
I am very interested in investing in real estate by being the liaison between the seller and another investor. I have read that assigning contracts to investors is a popular way for a person to begin their real estate investment careers. I have also read that it is important to stay within the legal guidelines of real estate investing and the contract has to clearly state the intentions/fees of the person initiating the assignment. I want to know what is absolutely necessary to have in the contracts when assigning properties over to another investor.
Asked on June 18, 2009 under Real Estate Law, Virginia
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 14 years ago | Contributor
You can raise a lot of serious issues with what you are doing -- securities laws as well as mortgage broker, mortgage servicer and money transmitter laws.
You should inquire with the following:
1. Business attorney at www.attorneypages.com;
2. Your state's Securities' Division;
3. Possibly the Securities Exchange Commission; and
4. Virignia Bureau of Financial Institutions. http://www.scc.virginia.gov/bfi/index.aspx
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