January 9th, 2017 at 4:32 pm
Answer: The answer to your first question is “no.” The AOAA is not enough. Even if an assignee signs the AOAA, he or she must still sign each disclosure under paragraph 2 of the AOAA. From a risk management standpoint, having the assignee sign each disclosure is the preferred approach anyway to show that the assignee has received and reviewed each disclosure.
As for your second question about timing, either way is acceptable. The AOAA states that the disclosures signed by the assignee will be delivered within 3 days after the seller agrees to the assignment, or if you check the appropriate box in paragraph 2, the signed disclosures can be attached to the AOAA. Attaching the signed disclosures to the AOAA may be the better approach if the buyer wants to encourage the seller to agree to the assignment by showing the seller that the assignee is motivated to close escrow.
-Thank you to Armen Sarkissian (Pasadena Office) for suggesting this week’s legal tip.
Copyright© 2017 Berkshire Hathaway HomeServices California Properties (BHHSCP). All rights reserved. Any unauthorized reproduction or use of this material is strictly prohibited. This information is believed to be accurate as of January 9, 2017. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals.
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