This Ca. board of realtors update is HUGE.
I have been talking for years about the fact that i have been doing deals in 4 states and Ca. is the only state that does not have a clause in the contract that prohibited assignments. Contract law is federal- not state specific. Contract law states that unless assignment in mentioned in the contract, that contract is automatically assignable. So i never put in “and or assigns”.
Banks knew about this weakness so they made you sign a pound of paperwork that says you can’t this and that. Even if you were doing a short sale, i would tell my students that you should ask the realtor to show you the paperwork that the bank made the seller sign. Many times, there was language in the seller’s short sale agreement with the bank that if any change was made in the buyer’s info before closing, the short sale agreement.would be cancelled
So i would tell my students that if you were dealing with a listed property and it was with an owner and no bank was involved, you are free to assign this without putting any verbiage in the contract.
Well, the Board of Realtor’s attorneys finally caught on. they revised the contract last year and here is the new language.
