I can't comment on your emd amount or closing date... that's all negotiable. But your contract most likely has some language about assigning the contract. At the end of the day, everything is negotiable, but if this contract doesn't "fit" basic state standard contracts, you may need to request them to have an attorney prepare an offer and contract.

Sounds like this "broker" has been watching too many late night investment shows.

Have seen similar and much worse offers from potential investors who really do not have any money, just an idea of how to secure and flip with no skin in the game.

  You can assign a Contract, but how can you assign an Offer?

that Broker is a "straw" for the undisclosed party.... and that's how those with deep pockets and/or institutions buy property.... they use a straw....

Peter,

I think that Nina Hollander said it perfectly.  A

It's a real offer, albeit a weak one. I'd ask for more skin in the game and would continue to market the property until all contingencies are released.

In AZ, contacts are assignable. Sometimes banks will not accept an assignee offer. The original offeror is on the hook for the deal until the assignee is put in place, so I would look at the offer's other terms to decide whether to accept it. You can also put a clause in the contract that the seller must approve any change of buyer in writing, and give the original buyer a time limit as to when they can assign the contract.

This is very unusual. But all offers need to be presented to the seller. Ultimately it is the seller's choice what to do. But you can advise him/her that the way this offer is written is not the norm.

There is not always something wrong with assignable contracts, but review carefully. I would ask seller. If seller isn't comfortable w assignable contract, I would have them give me written instructions stating that they don't want to consider or accept assignable contracts.

No nominees or assignees - unless the EMD is 10% and non-refundable!

Is this a financing situation? If so, is the other person able to get financed?

Something not sounding right here to me

If he does not sell it at a profit he will not close! Up the required deposit and watch him run!

It is just another way to sell real estate.

I would want information about the second buyer and to make sure that you have the right to approve that second buyer. This sounds very suspicious to me because there is so much you don't know. Of course Marc Swartz, CPA, CA, Real Estate Broker is absolutely right that you should consult legal counsel but even if it is allowed I think you need more information

I have had buyers who wished for their identity to be unknown to the seller during negotiations as they felt they would be compromised.  It's never been an issue to assign it to the actual buyer once price was negotiated.

Yes it is really an offer.

This is a legal question for an attorney in your state, e.g. are offers "assignable"? Doesn't sound right unless the broker has a power of attorney to act on behalf of someone else. Sounds like the broker just wanted to "own" the listing.

An "assigned" offer, is still a valid offer.   Unless you care who the new owner will be (and I can't imagine why you would care) consider it as a regular offer, and negotiate it as you normally would.

assignment is a big red flag to me. only way I could recommend would be cash with proof of funds, helps weeed out the late night infomercial wannabe's.

Peter Mohylsky you surely can counter - including asking for more EMD.

Of course, the seller will take the decision on the other details - price, terms, conditions - and if it works for them, nothing wrong in this offer, I believe.

It is up to the seller to accept or counter the offer. Definitely an investor's offer trying to feel the seller's motivation.

Present it to you client and counter out all items in dispute.  You never know.

I think there is a lot of uncertainty with that offer and for a closing that far off and the right to assign it the EMD need to be substantial.

We accept assignment contracts on a daily basis.

I have seen offers assigned before, but I would make sure the offer details are fine with the sellers including the emd and the closing date.  I would also put in the counter that the assignement needs to be down within a certain date.

What is the reason for the assignment? I always ask that. As I read your question...the offer was written in the broker's name and the broker wants to assign it to someone else?

It sounds like you have a valid offer. See what your sellers want to do. It may be that the buyers are out of the country...there could be all kinds of reasons for the Nov. closing date. I recently had that happen. 

 I would counter the offer and dispute the items that you disagree with ...

Do you have any better offers at this moment? If not, try to work it out. I'd find out when exactly the offer will be reassigned. I believe, they should disclosure to your client what is going on. 

It sounds like you got an offer from someone looking to "flip" the house, which is not a bad thing at all...most of the time "flippers" or wholesalers have a pretty decent buyers list that are looking to buy right now! 

Counter for sure.  Not sure about how to handle this one.

Nothing wrong with an assignable contract as long as the buyer is not released of the liability. 

Many of my clients end up assigning to their company and sophisticated  agents do not set up road blocks.  These deals are more solid than an FHA or VA contract.

Eve

This is something that the flipping show people (Tarek and Christina as well as Armanod Montelano) teach in their seminars.  This way they can "resell" it before escrow closes and not have any real financial risk. 

It's not an offer my sellers will accept.

A cash offer with proof of funds for the Broker and his assignee would make it more palatable, although reading "he has no desire to own the home" sums it up for me. 

Peter Mohylsky Ken Jones has a very good point. The broker may know something you don't know. Take a trip to your County/City records department. There may be a highest and best use for the property, that you or the owner may not be aware. Also, check the Master/Comprehensive Plan to see what future plans your County/City may have that will impact the properties value.

Assignable offers are legal if everyone signs up to it. A low EMD could mean walking away while the Broker is doing his due diligence. Lock him in to see how serious he really is in purchasing the property.

The Broker is trying to flip the property. He/She locks into a price then finds (or already has) a buyer who will pay more than his/her offer. The reason the emd amount is low is because the Broker wants to put as little money as possible at risk should there be be problems in having the emd returned. If no buyer is found the broker voids the contract but your seller has lost time. I would take a closer look at the property and see if anything was missed as re it's market value. To answer your question.........It's really an offer.

I don't think you are missing anything.  

In my state, assigning a contract is done more commonly than most people know. Mostly on behalf of investors and celebrities.

Be firm and assertive, and counter, counter and counter until you have to to terms and conditions that are acceptable to your client and make the deal stick.

I see a lot of assigned contract from flipping and gimmicky investors that watch late night real estate TV shows.... and THOSE are a waste of time.

I do not believe you are over looking anything.  Seems to be a broker who wants an "opportunity" to make a few extra bucks ... and likely in an unlawful way.  I don't know ... just sayin' ...

Opportunist at work is what it appears like

Present the offer to the seller with suggested options.  It will be up to the seller to decide to accept, reject or  counter.                          

Not sure about this - is it a cash offer?

These sorts of offers were very popular before '08 and if still in a Sellers' Market, hy would the seller even consider this?

Happens often on low priced homes, many who will buy, fix and sell. I do not like those words on a contract as many will walk away from a low EMD if they cant find anyone to sell the contract to. Many banks are not allowing this any longer

Lise has given good advice.

Performance by someone is huge !

Whether it is an offer depends upon the law in your jurisdiction.  Consult legal counsel who has appropriate expertise in your jurisdiction if you are unsure.

In my jurisdiction, some offers include terms to provide the ability to assign contracts to another party.

As long as you come to an agreement it should not be a problem as to actually owns the house.

Good luck with your transaction.