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 11 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


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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