Assignment Agreement Drafting

Overview

Sometimes you hold a right under a contract that you want to pass to someone else before it runs its course. The most common example in real estate is a flat or plot booked from a builder that the original buyer no longer wants. The person taking it over steps into the original buyer's shoes. An assignment agreement is the paper that makes that handover formal.

It identifies the original agreement, the party assigning their rights, the party taking them over and, importantly, the builder or seller whose consent is usually needed. It records what is being paid for the assignment, which amounts already paid to the builder are being taken over, and who bears any transfer fee the builder charges. It should also state that the person taking over accepts all the obligations that come with the original contract, not only the benefits.

Mistakes here tend to be expensive. If the builder has not signed off on the transfer, the new buyer may find the builder refuses to recognise them. If dues or a loan against the unit are overlooked, they follow the property to the new owner. We draft assignment agreements with these points covered and check whether stamp duty and registration apply in your state for the type of rights being transferred. Where the property is under construction, we also look at the project's RERA status before you commit to taking it over.