Contract Assignment
Transferring the rights of a purchase contract to an end-buyer, who steps in and closes in the wholesaler's place for a fee.
A contract assignment is the most common way wholesalers get paid: the contract with the seller includes an assignment clause, and the wholesaler sells those purchase rights to a cash buyer who closes directly with the seller. The wholesaler never takes title — they transfer the right to buy.
It's cheaper and faster than a double close because there's only one closing, but the assignment fee is visible on the settlement statement. When that transparency would spook a seller or exceed the buyer's comfort, investors reach for a double close instead.
Related terms