From Property Talk Community Wiki

Assignment

Assignment is the process of getting a property under contract, then assigning that contract (usually for a fee) to another person who wishes to purchase the property.

How it Works

The purchaser will typically make a conditional offer to purchase a property.

The Sale and Purchase Agreement will show the purchasers name, plus the words "or nominee". The words "or nominee" allow the purchaser to assign the agreement to another party

The conditions will usually include some kind of Due Diligence Clause giving the purchaser time to find someone else who will buy the property before it is necessary to go unconditional.

Once the new purchaser has agreed to take over the contract, a Deed of Assignment is completed which legally identifies the new purchaser as the one who will buy the property. At this assignment stage a fee is usually paid to the

The sale and purchase process then continues as normal.

Legal Issues

Assignment is a simple process, however there are two opposing schools of thought on the legalities.

One school of though says that assignment is the process of selling a contract whilst the other school of thought says it is the process of selling a property which only licenced real estate agents may do.

The legalities of this process have not yet been tested in the courts, although some property finders have structured their processes to avoid the potential legal issues. They have done so by double settlement.

Further Information

PT discussion on the legalities http://www.propertytalk.com/forum/showthread.php?t=6297&highlight=tick-tock