Dispositions

How to get your assignment fee paid at closing

To get your assignment fee paid at closing, you need to ensure the assignment agreement clearly states the fee and directs the title company to disburse it to you. The title company handles the disbursement from the buyer's funds after all other closing costs and seller proceeds are covered.

November 3, 2026 · 3 min read

Understanding the role of the title company

The title company acts as a neutral third party, managing all the financial aspects of a real estate transaction. Its job is to ensure that funds are disbursed correctly, clear title is transferred, and all parties receive what they are owed.

For an assignment deal, the title company is responsible for collecting funds from the end buyer, paying the seller his or her agreed-upon price, covering any liens or closing costs, and then disbursing your assignment fee.

Establishing a good relationship with a title company that understands wholesale transactions is crucial. They can guide you through specific requirements in your state or county.

Essential clauses in the assignment agreement

Your assignment agreement must clearly state the assignment fee amount. It should specify that this fee is to be paid by the assignee (your cash buyer) directly to you, the assignor, at closing.

Include a clause that explicitly directs the closing agent (the title company) to collect and disburse this fee. Without this clear instruction, the title company might not know to pay you, or there could be delays.

Ensure the agreement also reiterates that the earnest money deposit from your end buyer, if any, will be credited towards the purchase price, not necessarily your assignment fee, unless otherwise stipulated and agreed upon.

Providing documents to the title company

Once your assignment agreement is fully executed, promptly provide it to your chosen title company. They need to see both your original purchase and sale agreement with the seller and the assignment agreement with your end buyer.

The title company will require your tax identification number or Social Security number for proper disbursement and tax reporting. This is standard procedure for any financial transaction.

Be prepared to provide any other documents the title company requests, such as a copy of your operating agreement if you are assigning through an LLC. Cooperation here speeds up the process.

What to expect on closing day

On closing day, the title company will prepare a closing disclosure or settlement statement. This document details all funds exchanged, including the buyer's purchase price, the seller's proceeds, and all fees.

Your assignment fee should be listed as a line item on the buyer's side of this statement, showing the disbursement to you. Review this document carefully before signing to ensure accuracy.

Once all documents are signed and funds are collected from the buyer, the title company will typically wire your assignment fee directly to your bank account. Some may offer a physical check, but wires are more common for speed.

Common issues and how to avoid them

A common issue is a title company unfamiliar with assignment agreements, which can lead to confusion or delays. Vet your title company beforehand to ensure they handle wholesale deals regularly.

Another issue arises if the assignment agreement is unclear about who pays the fee or how it is disbursed. Ambiguity often causes problems, so clear language is paramount.

Ensure consistent communication with the title company throughout the process. A quick phone call to confirm they have all necessary documents and understand the disbursement instructions can prevent headaches on closing day.

Questions people ask

Does the seller see my assignment fee?

Typically, the seller does not see your assignment fee directly on his or her closing disclosure. His or her statement will only show the agreed-upon sale price and associated costs.

What if the buyer wants to use his or her own title company?

If the buyer insists on using his or her own title company, you will need to work with that company. Ensure they are familiar with assignment transactions and provide them with all necessary documents promptly.

Can I get a check or does it have to be a wire?

Most title companies prefer to wire funds for security and speed. You can ask if a physical check is an option, but be prepared for a wire transfer to be the standard method of payment.