In an assignment deal you are not buying the house from the wholesaler; you are buying their position in an existing purchase contract with the seller. Understanding that one sentence prevents most wholesale disputes.
KEY FACTS FROM THIS GUIDE
- Earnest money belongs in title company escrow, never a personal account
- Assignment fees are paid on the settlement statement, or they are not legitimate
- Texas Prop. Code 5.086 requires disclosure of equitable-interest assignments
- An owner title policy covers forgeries, missed liens and chain-of-title defects
How the paper actually flows
The wholesaler signs a purchase contract with the seller. You sign an assignment agreement with the wholesaler, taking over the buyer position for a fee. At closing, the title company deeds the property from the seller directly to you. Two documents, one closing, completely standard in Ohio, Texas and Georgia.
What to check in the assignment agreement
The full underlying contract must be attached, read it, because you inherit every term. Confirm the closing date is achievable for your financing, the earnest money terms, what happens if the seller defaults, and that your inspection rights survive the assignment.
Audit us with the 3-question check, then decide. Written numbers, licensed title company closings, zero pressure.
When a double closing is used instead
Some sellers or lenders prohibit assignments. Then the wholesaler buys and resells to you in two back-to-back closings the same day. Costs are slightly higher; your protections are identical. The title company handles the sequencing.
The two red flags
An assignment fee paid outside closing, or any money sent before the title company opens escrow. Every legitimate dollar in these transactions flows through escrow, no exceptions.
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