How to handle assignments in commercial contracts

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10/11/2016 | Author: TAR Legal Staff

Has anyone instructed you to add “and/or assigns” after the buyer’s name in the Parties Paragraph of commercial real estate contracts? That’s not the correct way to proceed when using TAR’s commercial contracts for improved and unimproved properties (TAR 1801, TAR 1802).

Paragraph 22E addresses assignments. It provides two checkboxes—one that states that the buyer may assign the contract and the other to indicate that the buyer may not. This paragraph also provides that if the buyer assigns the contract, the buyer will be relieved of any future liability under the contract if the assignee assumes the buyer’s obligations in writing.

TAR’s Commercial Contract Assignment of Buyer’s Interest (TAR 1943) should be used to capture the details of an assignment in writing.

Reprinted from the September/October 2016 issue of Texas REALTOR®. Get even more legal content, including a frequently asked hotline question, an errors and omissions insurance tip, and a quiz on the Code of Ethics in the latest issue of the magazine

Categories: Business tips, Legal, Commercial real estate
Tags: legal, commercial real estate, contracts, texas realtor magazine


Comments

Fritztherealtor on 10/13/2016

Clear & decisive -  for the better of all parties.  Good job!
Thanks for keeping us updated & informed.  I look forward to reading every issue from our Association.  Fritz

Bill Loden on 10/12/2016

OK ... what about a property not written on the commercial contracts?


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The material provided here is for informational purposes only and is not intended and should not be considered as legal advice for your particular matter. You should contact your attorney to obtain advice with respect to any particular issue or problem. Applicability of the legal principles discussed in this material may differ substantially in individual situations.

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