Dispositions

How to handle a cash buyer who wants to use his or her own assignment contract

When a cash buyer insists on using his or her own assignment contract, you need to review it carefully to ensure it protects your interests. While it's common for buyers to have preferred documents, your assignment fee and deal terms must remain intact.

October 25, 2026 · 3 min read

Why a cash buyer might prefer his or her own contract

Cash buyers often have standard operating procedures and legal counsel that prefer their own forms. His or her attorney might be more comfortable with language he or she drafted or reviewed. This is not necessarily a red flag, but it does mean you need to be diligent in your review.

He or she might also want to include specific clauses that are important to his or her business model, such as repair credits, extended inspection periods, or particular closing timelines. His or her contract might be optimized for his or her specific investment strategy, which may or may not align perfectly with yours.

What to look for in his or her contract

When presented with a cash buyer's assignment contract, immediately verify the assignment fee amount and how it is structured. Ensure your fee is clearly stated and protected, specifying if it's due at closing or held in escrow. Look for any clauses that could diminish your fee or make it contingent on conditions outside your control.

Check the closing date, inspection period, and any financing contingencies (though less common with cash buyers, review for any 'gotchas'). Make sure the contract aligns with the terms you originally negotiated with the seller. Any discrepancies could cause issues down the line. This is not legal advice, consult an attorney.

Protecting your assignment fee and deal terms

Your priority is to ensure the assignment fee is secure. If the buyer's contract has vague language or introduces new conditions, you need to push back. Insist on clear, unambiguous terms regarding your compensation. You might need to add an addendum or make specific revisions to his or her document.

Do not sign anything that leaves your fee open to negotiation after the fact or allows the buyer to back out without consequence. The contract should clearly state the buyer's obligation to perform. If his or her contract contradicts your original purchase agreement with the seller, you will need to reconcile those differences.

When to push back or walk away

If the cash buyer's contract significantly alters the deal's fundamentals, jeopardizes your fee, or introduces undue risk, you need to be prepared to negotiate. Politely explain your concerns and propose specific revisions. Frame it as ensuring a smooth transaction for all parties.

If the buyer is unwilling to compromise on critical points, especially those affecting your compensation or the integrity of the deal with the seller, you might need to consider finding another buyer. It is better to walk away from a problematic assignment than to risk losing your entire fee or getting entangled in a dispute. Sometimes, you need to know /when-to-walk-away-from-a-seller to protect yourself and your business.

Involving legal counsel

When in doubt, always have an experienced real estate attorney review the cash buyer's proposed assignment contract. He or she can spot hidden clauses, clarify confusing language, and ensure your interests are fully protected. This is particularly important if the buyer's contract is significantly different from what you typically use.

Do not hesitate to budget for this legal review. The cost of a few hundred dollars for an attorney's time can save you thousands in a bad deal. An attorney can also help you draft specific addenda or counter-offers to address any problematic terms. This is not legal advice, consult an attorney.

Questions people ask

What if the buyer's contract doesn't mention my assignment fee?

You must absolutely ensure your assignment fee is clearly stated and agreed upon in writing. If it's missing, you need to add it, either by amending his or her contract or attaching an addendum. Do not proceed without this crucial detail being explicit.

Is it normal for a buyer to want to use his or her own contract?

Yes, it is common. Many experienced cash buyers have standard contracts that their attorneys have vetted. This doesn't mean you automatically accept it; you still need to review it thoroughly to protect your own interests in the deal.

Should I share my original purchase agreement with the cash buyer?

Generally, you do not need to share the full original purchase agreement with the cash buyer. The assignment contract assigns your rights to that agreement. However, the buyer will typically need to see the purchase price and key terms of the original agreement to understand what he or she is stepping into. This is not legal advice.