Protecting yourself in an assignment agreement

People buy and sell real estate in BC with a document called the Contract of Purchase and Sale. It describes the rights and obligations of the buyer and seller.

A contracting party can sell those rights to someone else unless the contract states otherwise. This type of transaction is known as an assignment agreement.

In simple terms, someone can buy the right to step into the original buyer's shoes to complete the contract.

The person selling the contractual rights is the assignor. The person buying the rights is the assignee. The money the assignee pays for the contract is the assignment fee.   

Here are 10 steps to take before you enter into an assignment deal.  

You should ensure that:

1. you work with a REALTOR®. Your REALTOR® will help protect your interests and bring knowledge of the provincial legislation that governs real estate transactions.
2. the person assigning the contract has the right to do so;
3. the original contract permits assignments;
4. the original seller is aware of the assigment;
5. the property is or was listed for sale;
6. the identity of every individual involved in the transaction has been verified;
7. all money already paid and owed is accounted for and dealt with in the assignment contract;
8. you seek legal advice before agreeing to pay the assignment fee;
9. you understand the additional risk associated with paying the assignment fee before the original contract is finalized; and
10. you consult an accountant to understand the tax implications.

Welcome to this Beautiful free standing 3 years old West Coast stylebuilding plus restaurant business in Harrison Hot Springs. $998,000

Welcome to this Beautiful free standing 3 years old West Coast style building plus restaurant business in Harrison Hot Springs. $998,000

130 seat restaurant on 33x130 lot situated minutes from beach, tourist promenade, & major resort & hotels. Well designed 2,245 sq ft building has high vaulted ceiling, air conditioning, washrooms, generous & well equipped kitchen plus an extra 350 sq ft outdoor covered balcony. 

Currently serving simple but well received menu, recipient of the 2013 Excellence in Culinary Award. Liquor license, suitable for other menus as well. 

It caters to group functions. It is an ideal family run business that prides itself in building a meal from scratch. All foods are prepared in house from fully fresh products & special recipes. All baking is done on site. Absolutely excellent investment opportunity for this beautiful property plus profitable restaurant business.

Contact Maria @ 604-839--6368 or visit www.mariamak.com for more details and arrange private viewing.

Maria Mak - Burnaby Realtor - Please donate generously or join me in this fundraising event -Kayak for a Cure 2015 - in memory of my mom

Please donate generously or join me in this fundraising event -Kayak for a Cure 2015 - in memory of my mom - which will take place in Vancouver on August 29th 2015. 

Follow the link below and help me make my goal reached this year - THANK YOU.

http://convio.cancer.ca/site/TR/UnitFundraisingEvent/General?px=5506688&pg=personal&fr_id=16335#.Vcdy75VRHIU
 

Maria Mak. Burnaby Realtors. Understanding Agency Relationship when working with REALTOR®

The agency relationship is established through a contract between you, the client, and your agent, the company under which the REALTOR® is licensed. Most REALTOR® use a blue brochure titled Working with a Real Estate Agent to disclose the nature of the agency relationship with their client.

A REALTOR® can act for a seller or a buyer, or to a limited degree, both. Whomever they represent, REALTORS® have a legal obligation to uphold the integrity of their clients, while protecting and promoting their interests.

Seller's Agent /Buyer's Agent /Dual Agency  

•For your REALTOR® to list your property for sale on MLS®, the Real Estate Board of Greater Vancouver requires completion of a listing agreement.

•Signing this agreement with you commits your REALTOR® to uphold the above obligations.

•The listing agreement also states the compensation amount the seller will pay the REALTOR®.

•The contract of purchase and sale is initiated when an offer is made by the buyer to purchase the sellers's property.

•The contract outlines the terms and conditions of the offer, such as offer price and subject conditions.

•The seller may reject the offer or make a counter offer.

•Once all terms have been accepted and both seller and buyer have signed the contract, each party is legally bound to fulfill the conditions of the contract.

•Dual agency is created when an agent represents both the buyer and seller in a single transaction.

•This can happen if a REALTOR® who is representing a buyer, sells one of their own listings to that buyer.

•A dual agent must be impartial to both buyer and seller and fully disclose all information relating to the transaction.

•A REALTOR® can be a dual agent only if both seller and buyer agree in writing.

Remember: always read all contracts and disclosure forms before signing. If you have questions about agency relationships contact your REALTOR® or Maria Mak @ Sutton Centre Realty or visit her website at www.mariamak.com , You'll be smilling too!