Transferring Right To Buy Property
Ask the Real Estate Lawyer: Real Estate Law Q&A
REM #LAW 709
By Ilyce R. Glink and Samuel J. Tamkin
Summary: A reader has transferred the right
to buy a property to a second party who in turn transferred it to a third party.
Sam and Ilyce suggest getting the bank to authorize the closing agent to transfer
title to the third buyer
Q: I signed a contract to buy a home from a bank selling a home through its
repossession department. However, I assigned the contract to another buyer.
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This buyer in turn assigned it further to a third buyer. The third buyer is
preparing to close but the closing documents are in the name of the second buyer
only. We need the document to be in the third buyer’s name only. The closing
agent is telling me we have to get the forms signed by the selling bank, but
the person that needs to prepare the documents is out of the office. Do we need
to get this signed, or can someone else sign for the bank, like the banks real
estate agent, or do we not need it at all?
A: You confused me a bit with the multiple assignments of your right to purchase
the property you were buying. You, in effect, transferred your right to buy
the property to another and that person transferred his right to another. If
you did not coordinate these transfers, the seller would be clueless who is
buying the property.
A closing agent should not prepare documents transferring the title to the
third buyer unless the bank knows about it and gives the closing agent the authority
to draft the documents giving title to the property to the third buyer. As such,
you will need the bank to draft the document to the third buyer or have the
bank authorize the closing agent to draft the document that way.
Keep in mind, that the bank and closing agent need to make sure that if they
transfer the property to the third buyer, neither the first or second buyer
are going to come back and sue the bank for the bank’s failure to transfer
title to either of them.
There are certain legalities that must take place to insure that the paperwork
is just right to make sure that title runs from the bank to the third buyer.
The advice the closing agent gave you is sound and you should proceed to try
to get the bank to authorize the closing agent to transfer title to the third
buyer. If the one person that can authorize that change in the documents is
out of the bank, you may try to delay the closing until that person returns.
Samuel J. Tamkin is a Chicago-based real estate attorney. Ilyce
R. Glink’s latest book is 50 Simple Steps You Can Take To Sell Your
Home Faster and For More Money In Any Market. If you have questions for
them, write: Real Estate Matters Syndicate, PO Box 366, Glencoe, IL 60022
or contact them through Ilyce’s website www.thinkglink.com