What Is an Assignment Addendum?

The addendum travels with the purchase agreement as its own page, so the right to assign is easy to see without hunting through the main contract. It typically states that the buyer may assign to any person or entity, and it addresses whether the original buyer stays responsible after assignment or is released, whether the seller must be notified, and sometimes that the seller understands the buyer may resell. It carries no price terms; those stay in the main contract. An "and/or assigns" phrase in the contract body can do part of the same job, but a separate addendum states the right plainly and is easier to point to when a title company asks.

Acquisitions attaches the addendum when the contract is signed, so the right to assign is documented before anyone needs it. Disposition then pairs it with the separate assignment agreement signed with the end buyer, which actually moves the rights. People mix the two up because both are called assignment documents: the addendum sits on the seller side of the paper trail, the assignment agreement on the buyer side, and the title company usually asks for both. The contract’s terms for earnest money, inspection, and closing date pass to the end buyer, so the addendum should be read against what that buyer expects.

State rules matter more here than almost anywhere else in wholesaling. Some states require specific disclosures to the seller that the buyer may assign for a fee, restrict advertising a property the marketer does not own, or treat repeated assignments as brokerage activity that needs a license. A seller who feels misled about the assignment can dispute the contract. Use attorney-reviewed forms and be open about the intent to resell. Having the addendum does not make an assignment lawful everywhere.