Assignment of Contract in Real Estate: Step-by-Step Guide With Free Template & PDF

Real estate investing can feel overwhelming when you’re first starting out. Between high prices, financing hurdles, and all the talk about “passive income,” it’s easy to assume you need a lot of money to get involved. But what if you didn’t need to buy a property at all? What if you could get paid just by controlling the paperwork?

That’s where an assignment of contract comes in. It’s one of the most accessible strategies in real estate and a go-to move for new investors looking to break in. If you’ve been "Googling" phrases like “what is assignment of contract in real estate” or wondering how to flip houses without actually buying them, we've created this guide just for you. You’ll learn how to use a real estate assignment contract to secure deals, find buyers, and earn assignment fees, without needing cash, credit, or a real estate license.

And if you're serious about learning this step-by-step, we teach the entire process in our program designed specifically for new and aspiring real estate investors.

Here’s what we’ll cover:

• What Is an Assignment of Contract in Real Estate?
• How Assignment of Contract Works
• Why Investors Use Assignment Contracts
• Legal Considerations: Is It Legal to Assign a Real Estate Contract?
• How to Fill Out an Assignment Contract (With Template)
• Assignment of Contract FAQ

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What Is an Assignment of Contract in Real Estate?

One of the most accessible ways to get started in real estate investing is through an assignment of contract. This strategy gives you the ability to earn money in real estate without ever taking ownership of the property. Rather than buying the home yourself, you are merely securing the rights to buy it (that's an important distinction); you aren't buying the house, you are obtaining the rights to buy it.

Legally, here’s how it works: the person who secures the property under contract is known as the “assignor.” The investor or buyer receiving the contract is the “assignee.” What’s being transferred isn’t the property itself, but rather the right to purchase the property under the original terms. This only works if the original agreement gives you the right to assign it, usually through a specific clause in the contract. The real estate assignment contract is what makes everything official, laying out who’s involved, what’s being transferred, and how the deal will move forward.

If you’re new to this strategy, we teach the entire process in our Ultimate Investor Program, from writing the contract to finding your first end buyer and collecting your fee.

Assignment of Contract Example

Let’s say, for example, one of our students connects with a motivated seller who’s willing to let go of a rental property for $150,000. Our student puts the property under contract using an assignment of real estate purchase contract that includes an inspection contingency. While the property is under contract, he markets the deal to a list of local cash buyers and finds one ready to purchase it for $160,000.

Instead of buying the property himself, James assigns the contract to that buyer for the higher price. At closing, he collects a $10,000 assignment of a contract fee—the difference between his original price and the end buyer’s price. He never takes title to the property or secures financing. His role is to secure the deal and transfer it, which is exactly how this strategy allows new investors to earn income without taking ownership of the real estate itself.

Real Student Success: How Diana and Chase Flipped Two Deals

The example above shows how a beginner might profit from assigning a contract, but let’s take it one step further. Now we’ll share a real story from two of our students who used this exact strategy in the real world. Diana and Chase went from having no experience to earning $40,000 by locking up properties with an assignment of contract for purchase of real estate and transferring those deals using a standard assignment agreement real estate investors use every day. Here’s how they did it.

Diana and Chase came to us with zero background in real estate. With two kids to support and financial stress from an unstable industry, they needed something more reliable—a way to generate income they could count on: an assignment of purchase agreement. Failure wasn't an option for these two and their family.

After joining our program, they wasted no time putting what they learned into action. With mentorship, tools, and the right support, they locked up two investment properties, partnered with a buyer, and flipped both deals for a combined $40,000, earned from just eight offers and without spending anything on marketing.

And they did it all in one of the most competitive markets in the country: Southern California. Their story proves that new investors can find success flipping real estate contracts, even without experience, capital, or a huge network. Want to hear how they made it happen? Watch the full interview below.

How Assignment of Contract Works

Now that you understand what an assignment of contract is, let’s walk through how it actually works in the real world. Here’s how a typical assignment contract real estate deal comes together:

• Find a motivated seller: Start by identifying a homeowner who wants or needs to sell. These are often distressed property owners, landlords tired of dealing with tenants, or people facing foreclosure.
• Lock up the deal with an assignable contract: You negotiate a price and sign an assignable purchase agreement. This gives you the right to buy the property—and the option to assign that right to someone else.
• Find a cash buyer: Next, you market the deal to your buyers list. These are typically local investors or flippers looking for off-market properties at a discount.
• Assign the contract and collect your fee at closing: Once a buyer agrees to purchase the deal, you assign the contract to them using a simple contract assignment form. At closing, you’re paid an assignment fee, often thousands of dollars, for facilitating the deal.

This entire process can happen anywhere from a few hours (for skilled veterans) to a few weeks (for complete beginners). If you want to learn exactly how to do this—from finding sellers to building your buyer list to structuring your first assignment—we cover it all inside our real estate investing program.

What’s Actually Being Assigned?

When you assign a contract, you’re not selling the house; you’re selling your right to buy it. More specifically, you’re transferring your position as the buyer in the original agreement. The property stays in the seller’s name until closing, and your end buyer steps into your place as the new purchaser under the same terms.

This distinction is critical. You’re assigning the contract, not the property itself. That’s what makes the assignment contract real estate strategy so powerful: it allows you to profit without ever taking ownership.

Assignor vs Assignee

In a contract assignment, the two key players are the assignor and assignee. The assignor is the original buyer: you. You’re the one who put the property under contract and now wants to transfer that right. The assignee is your end buyer; the investor who steps in and actually closes on the deal.

Think of it this way: the assignor locks up the opportunity, and the assignee pays for the opportunity. This dynamic is at the core of how wholesalers assign a contract and make money without ever buying the property themselves. Understanding the roles of the assignor and assignee is crucial if you want to execute clean, profitable deals.

*For in-depth training on real estate investing, Real Estate Skills offers extensive courses to get you ready to make your first investment! Attend our FREE Webinar Training and gain insider knowledge, expert strategies, and essential skills to make the most of every real estate opportunity that comes your way!

Why Investors Use Assignment Contracts

If you want to break into real estate without borrowing money, fixing up houses, or putting your own cash on the line, assigning contracts is one of the smartest ways to do it. It’s fast, low-risk, and doesn’t require you to own the property. You're not flipping a house—you’re flipping the paperwork that gives someone else the right to buy it. And when done right, you can turn a signed agreement into a quick five-figure profit, all without owning the home.

This is exactly why assignment deals are so popular in real estate investing for beginners. It gives you a low-risk way to enter the market and build real skills while learning how deals work behind the scenes. We’ve seen students land their first check in 30 to 45 days, simply by learning how to assign a wholesale real estate contract and match motivated sellers with ready buyers.

Benefits of the Assignment Strategy

The benefits of assigning contracts include, but are not limited to the following:

• No loans: Since you’re not purchasing the property, you don’t need financing or credit.
• No renovations: You’re not fixing the home—you’re just controlling the contract.
• No personal risk: You avoid the liabilities that come with ownership, including taxes, insurance, and property issues.

When you’re flipping real estate contracts, you’re creating value by finding the deal, not by fixing the house. And that’s a skill that scales quickly once you get the hang of it.

When an Assignment Makes Sense

While the strategy is powerful, it’s not always the right exit strategy. Some deals aren’t assignable, especially if the contract includes restrictions or requires the seller’s written approval. In certain states, you may also need a real estate license to perform assignments legally, depending on how you market the property and present yourself in the transaction.

It’s also important to consider the seller’s perspective. Some sellers may be uncomfortable with you assigning the contract to someone else. That’s why transparency and communication matter, both of which we cover in detail inside our program. The key is knowing when an assignment works and when it’s smarter to use another strategy, like a double closing.

Legal Considerations: Is It Legal to Assign a Real Estate Contract?

Yes, it’s completely legal to assign a real estate contract, as long as the contract itself allows it and you follow the laws established by the state in which the deal takes place. In fact, assignment in contract law is a well-established concept that lets one party transfer their rights and obligations to another. However, the rules around wholesaling and contract assignments can vary depending on where you live. Some states require a real estate license if you're marketing the property itself rather than the rights to the contract. Others may have stricter disclosure laws or assignment restrictions built into standard contracts.

The most important thing to look for is whether the agreement includes a real estate contract assignment clause. Without this, you might not have the legal right to transfer your interest in the deal. You’ll also want to understand how novations differ from assignments, and whether a seller requires a consent to assignment of contract before you can move forward. These legal details may sound complicated, but once you understand the basic structure of an assignment of contract agreement, navigating deals becomes much simpler.

Read Also: Is Wholesaling Real Estate Legal?

What Is a Real Estate Contract Assignment Clause?

A real estate contract assignment clause is the part of a purchase and sale agreement that determines whether you can assign your position in the contract to someone else. In most wholesale deals, you’ll want to use a custom contract or add an addendum that clearly states the agreement is assignable. If the clause says “This agreement may not be assigned without written consent,” you’ll need the seller’s approval to move forward with a contract of assignment.

We show our students exactly how to spot these clauses, what language to use, and how to protect their ability to assign the deal from the beginning.

Do You Need Permission to Assign a Contract?

That depends on what the contract says. If the agreement is silent on assignment, it’s generally considered assignable by default. However, if it includes a clause requiring approval, you’ll need what’s called a consent to assignment of contract from the seller. This is a simple written acknowledgment that the seller agrees to let you transfer your position to another buyer.

Letting the seller know upfront that you may assign the contract isn’t just honest; it makes the entire process easier. When expectations are clear from the start, there’s less confusion, fewer hiccups at closing, and a lot more trust on both sides; that’s something we focus on heavily in our training.

How to Fill Out an Assignment Contract (With Template)

You don’t need to figure this out on your own. Filling out an assignment contract for the first time can feel overwhelming, but it doesn’t have to be. There’s no reason to risk costly mistakes, delays at closing, or missing out on a deal just because no one showed you how this works. That’s exactly why we created tools and training to walk you through it.

We’re here to help. Below, you’ll find a sample assignment of contract PDF, access to our downloadable wholesale real estate forms, and a short video tutorial that breaks it all down step-by-step.

Preview: Sample Assignment Contract

Here’s a quick look at what a real assignment of contract form looks like. This document is what transfers your rights in a purchase agreement to your end buyer. It outlines the names of the parties involved, the agreed-upon fee, and the basic terms of the deal. If you’ve never seen one before, this preview gives you a feel for how simple it really is.

A typical assignment of purchase contract includes the following fields:

• Assignor: Your name, as the person assigning the contract.
• Assignee: The buyer you’re assigning the contract to.
• Original Seller: The homeowner or property owner listed in the original agreement.
• Purchase Price: The original price you negotiated with the seller.
• Assignment Fee: The amount the assignee agrees to pay you for the rights to the contract.
• Closing Date: When the end buyer is expected to close with the seller.

All of this is documented in the assignment agreement, which serves as the legal bridge between you and your buyer. It transfers your rights and obligations from the original purchase agreement while protecting your position and fee. If you’ve never seen a real assignment contract of agreement before, reviewing our template and walkthrough video will give you a huge head start.

Download Our Wholesale Contracts (Purchase & Assignment Agreements)

We’ve put together the exact documents you need to wholesale real estate legally and professionally. That includes our proven purchase and sale agreements and assignment of contract templates—all downloadable, editable, and beginner-friendly. These are the same contracts our students use to lock up deals and collect assignment fees across the country.

Watch: How to Fill Out Our Assignment & Purchase Contracts

If you’re more of a visual learner, we’ve got you covered. In this video, we walk you through exactly how to fill out each part of the downloadable contracts above. You’ll learn where to put the names, dates, prices, and how to complete the assignment section properly, so you can go into your next deal with confidence.

Common Mistakes to Avoid With Assignment Contracts

While assignment contracts are simple on paper, there are a few common mistakes that can cost you deals—or worse. Here’s what to avoid:

We cover all of this in more detail inside our program, where we give you the exact templates and tools you need to execute clean, professional assignments from day one.

Assignment of Contract FAQ

Here are answers to the most common questions new investors have when learning how to assign a contract in real estate. If you’re still wrapping your head around how this strategy works, these simple explanations will help you feel more confident moving forward.

Can you assign any real estate contract?

No, not all contracts are assignable. You need to check the agreement for language that either allows or restricts assignment. If it’s silent on the matter, it’s typically assignable by default, but always double-check.

Do you need a license to assign contracts?

In many states, you can assign contracts without a real estate license. However, some states have stricter rules—especially if you're advertising the property instead of the contract—so it's important to understand local laws.

Is an assignment the same as a double closing?

No, they’re different. With an assignment, you transfer your position in the contract to a new buyer. With a double closing, you buy the property and then immediately resell it. Assignments are faster and cheaper, but not always the best option.

How do you make money assigning contracts?

You negotiate a discounted price with the seller, then assign the contract to an end buyer at a higher price. The difference between those prices is your assignment fee. This is the foundation of many assignment of contracts in real estate.

What happens if the end buyer backs out?

If your buyer backs out and you haven’t collected earnest money, you might lose the deal. That’s why it’s smart to vet your buyers and use a solid assignment of contract sample that includes protections for you as the assignor.

Final Thoughts On Assignment Contracts

If you're new to the industry, learning how to use an assignment of contract can be your first foot in the door of an amazing industry. It’s fast, low-risk, and doesn’t require you to take out loans or own any property. You’re simply leveraging your ability to find a good deal and turning that skill into profit.

This strategy has helped countless beginners land their first check, build confidence, and take that crucial first step toward building long-term wealth through real estate. It also lays the foundation for more advanced strategies down the road, like fix-and-flips and buy-and-holds.

Ready to Take the Next Step in Real Estate Investing? Join our FREE live webinar and discover the proven strategies to build lasting wealth through real estate.

Whether you're just getting started or ready to scale, we'll show you how to take action today. Don't miss this opportunity to learn the insider tips and tools that have helped thousands of investors succeed! Seats are limited—Reserve Your Spot Now!

*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.