What is Assignment of Purchase Agreement Drafting?
An assignment of purchase agreement is a legal contract that specifies how a buyer’s rights and obligations will be transferred to a new buyer during a transaction.
It’s usually required when a buyer has signed a contract to buy an asset or property but wants to transfer their rights or obligations to another buyer before the transfer closes. This prevents the deal from being cancelled.
If you need to draft an assignment of purchase agreement, read the rest of this article.
We’ll explore essential information that you should include in your assignment of purchase agreement, how to draft the document for clarity, and how a qualified lawyer can help you with the drafting process.
What are Key Terms in an Assignment of Purchase Agreement?
An assignment of purchase agreement usually contains essential information such as the following:
- Parties. Specify the original buyer (assignor), new buyer (assignee), and original seller for clarity.
- Fee. State the amount that will be paid by the new buyer to the original buyer for the transfer.
- Original purchase price. You want to include the cost that was listed in the original document.
- Dates. The effective and closing dates of the transaction should be specified to clarify ownership.
- Assignment and assumption. Your agreement must confirm that the original buyer transfers their rights and the new buyer agrees to take on the relevant obligations.
- Representations and warranties. These are statements each party confirms, such as having legal authority to enter the agreement.
- Closing. Explain how the transaction can be completed.
What are Tips for Drafting an Assignment of Purchase Agreement?
When writing an assignment of purchase agreement, there are some important things to bear in mind.
Clarify the Original Document
Don’t neglect to include details about the original purchase agreement. This should provide information such as the effective date, parties, and what was being purchased.
You could also attach the original agreement to this document as an exhibit so that there is no confusion over exactly what is being assigned.
Describe the Assignment
Clarify what rights and interests the assignor is transferring to the assignee. Be as specific as possible by also explaining what obligations are being assigned and which the assignee is assuming.
Navigate the Assignment Fee
If the assignee will pay a fee to the assignor, which is standard with these agreements, you should state the exact amount and payment date. Include the method of payment so no details are left ambiguous.
Explain Assignor Liability
Should the assignor remain liable under the original purchase agreement, this must be stated. Or, explain that the assignor is released once the assignment officially occurs.
Address the Closing Process
For clarity, you should explain the closing process and which party is responsible for handling payments and/or compiling required documents to close the deal.
Should You Hire a Lawyer to Draft Your Assignment of Purchase Agreement?
It’s worth hiring a lawyer to draft your assignment of purchase agreement if you don’t have experience with contract drafting or you’re worried about missing important information.
A lawyer can help you by:
- Reviewing the original purchase agreement. They’ll spot any restrictions, consent requirements, and other details that could impact the transfer.
- Making the assignment legally valid. They’ll explain to you exactly what rights and obligations are being transferred so there’s no ambiguity.
- Protecting your interests. A lawyer will consider all payment terms, such as closing costs, to protect you against surprise financial obligations.
- Clarifying liability. They’ll identify if the original buyer in the agreement has any responsibilities after the assignment or will be released from them.
- Aligning the agreement with the relevant laws. Since rules and requirements can vary in different states, a lawyer will customize your agreement to the applicable laws.
- Preventing legal disputes. By having a clear and specific agreement drafted by a professional lawyer, you’ll reduce ambiguity that can lead to disputes.
- Reviewing your agreement. If you’ve drafted an assignment of purchase agreement, you can hire a lawyer to look over it to ensure all terms are legally sound and fair to both parties.
Where to Find a Lawyer for an Assignment of Purchase Agreement Drafting
If you want a lawyer to draft an assignment of purchase agreement for you, you don’t have to worry about where to find one or call traditional law firms in your area. Use an online legal platform that connects you to reputable and experienced lawyers, without having to leave your home.
ContractsCounsel is one of the largest online legal marketplaces that gives clients access to a curated network of lawyers who have been vetted on the platform. All lawyers have the expertise to assist you with your contract drafting needs.
It’s easy to ask a lawyer on the platform to draft your assignment of purchase agreement. Here are the steps to follow:
- Go to the ContractsCounsel marketplace.
- Specify ‘One-time project’ and ‘Create or update contract.’ If you’d prefer to request an agreement review, select ‘Contract review.’
- Post your project, or request. This is free to do.
- Include some details about what you need so you can match with the right lawyers.
- Receive bids. You’ll get multiple bids from lawyers on the platform who are ready to assist you.
- Review the lawyer data. The platform provides extensive information about the lawyers, such as their location, years of experience, credentials, and client ratings for previous projects they’ve completed on the platform.
- Select a lawyer to hire. They’ll draft your assignment of purchase agreement for a flat fee.
