What Is Assignment In Real Estate


Real estate assignment is a process of assigning the right to purchase an existing real estate contract to another party. It is one of the most commonly used real estate investment strategies. It can be used to quickly generate cash without investing a large amount of capital.

Benefits of Using Assignment of Contract

Assignment of contract is a highly desirable approach of investing in real estate since it has many advantages:

  • Low Investment:Assigning a property contract requires relatively little capital as compared to a traditional real estate investment.
  • Minimal Risk:Real estate assignment does not involve any physical investment or major risks associated with traditional real estate investments.
  • Fast Sale: Real estate assignment is a great way to quickly generate cash from a real estate investment.
  • Easy to Execute: Assigning a property contract requires minimal paperwork and is usually a simple process.

How does Real Estate Assignment Work?

First, the investor finds a property that is for sale and enters an agreement (usually a contract) with the seller to purchase the property.
Once the contract is in place, the investor finds a buyer who is willing to purchase the property at a higher price than the investor’s original purchase price.
The investor then assigns the rights to purchase the property to the new buyer in the form of a real estate assignment contract.
Once the assignment contract has been signed and the proceeds have been paid, the investor will no longer have any rights to the property and the new buyer will now own it.


Real estate assignment is an excellent way to quickly generate cash with minimal risk. It requires little to no capital, minimal paperwork, and is usually a simple process. However, it is important to understand the legal implications before entering into a real estate assignment agreement.