Assignor

Definition

An assignor is a party who assigns or transfers their rights, interests, or obligations under a contract or agreement to another party (known as the assignee). This legal mechanism facilitates the transfer of contracts such as leases, mortgages, or options to purchase real estate, ensuring that the assignee assumes the responsibilities and benefits initially held by the assignor.

Examples

Lease Assignment: Julia is currently leasing an apartment. She needs to move cities for work and transfers her lease agreement to Mark. In this case, Julia is the assignor, and Mark becomes the assignee.
Mortgage Assignment: John holds a mortgage on a property but wants to transfer it to his business partner, Tom. John, the assignor, transfers his rights and obligations under the mortgage to Tom, who is the assignee.
Option to Purchase: David has an option contract to buy a parcel of land. He decides not to develop it and assigns his purchasing rights to Lisa. David is the assignor, and Lisa is the assignee.

Frequently Asked Questions (FAQs)

Q: What is the primary role of an assignor in a contractual relationship?

A: The primary role of an assignor is to transfer their rights, obligations, or interests in a contract to another party, known as the assignee.

Q: Does the assignor need consent from the other original party of the contract to make an assignment?

A: It depends on the terms of the original contract. Some contracts require the consent of the other party for an assignment, while others do not.

Q: After transferring a contract, does the assignor have any remaining obligations?

A: Generally, once the contract is transferred, the assignor’s obligations under the agreement are also transferred to the assignee. However, specific laws and the contract terms may require the assignor to have residual responsibilities.

Q: What are some common types of contracts that can be assigned?

A: Common assignable contracts include lease agreements, purchase options, mortgages, service contracts, and membership rights.

1. Assignee: The party to whom the property, rights, or obligations are assigned by the assignor. The assignee steps into the shoes of the assignor and takes over the contractual obligations and benefits.

2. Assignment: The process by which the assignor transfers rights, interests, and obligations of a contract to the assignee. The assignment changes the party to whom obligations are owed and from whom benefits are received.

3. Delegation: Different from assignment, delegation involves the transfer of duties (but not rights) under a contract to a third party, known as a delegatee.

Online Resources

Legal Information Institute: Provides detailed legal resources about assignment and its implications.
Investopedia: Offers general explanations and examples of assignments in contractual agreements.

References

Smith, Richard, “Real Estate Law: Fundamentals for The Development Process,” Aspen Publishers, 2010.
Garner, Bryan A., “Black’s Law Dictionary,” Thomson Reuters, 2019.

Suggested Books for Further Studies

“Real Estate Law” by Marianne M. Jennings
“Contract Law for Dummies” by Scott J. Burnham
“Principles of Contract Law” by Richard Stone and James Devenny

Real Estate Basics: Assignor Fundamentals Quiz

### An assignor transfers their rights and interests to the: - [ ] Delegee - [ ] Seller - [ ] Borrower - [x] Assignee > **Explanation:** An assignor transfers their rights, interests, or obligations to the assignee. ### Who becomes responsible for the obligations initially held by the assignor after the transfer? - [ ] The original contract holder - [ ] A subcontractor - [x] The assignee - [ ] The assignor remains responsible wholly > **Explanation:** After the transfer, the assignee becomes responsible for the obligations initially held by the assignor. ### Is consent always required from the original party to the contract for an assignment to occur legally? - [x] No, it depends on the specific terms of the original contract. - [ ] Yes, always required by law. - [ ] Only if the contract is verbal. - [ ] It depends on state law. > **Explanation:** Consent from the original party to the contract is not always required; it depends on what is stipulated within the original contract terms. ### Which type of real estate contract can be assigned? - [ ] Deeds - [x] Lease agreements - [ ] land tenure agreements - [ ] Notarial deeds > **Explanation:** Lease agreements are one of the types of real estate contracts that can be assigned. ### When assigning a lease, who becomes the new tenant? - [ ] The landlord - [ ] The owner - [ ] The assignor - [x] The assignee > **Explanation:** The assignee becomes the new tenant when a lease is assigned. ### What is the term when the assignor retains some obligations after an assignment? - [x] Residual obligations - [ ] Deferred liabilities - [ ] Balanced sheets - [ ] Redundant duties > **Explanation:** If the assignor retains some obligations after the assignment, these are referred to as residual obligations. ### Who originally holds the rights in a contract before the assignment? - [x] The assignor - [ ] The default party - [ ] The lessee - [ ] The bailor > **Explanation:** The assignor originally holds the rights in the contract before they are assigned to the assignee. ### What must be ensured for an assignment to be valid and enforceable? - [x] The contract must allow the assignment. - [ ] The assignor must inform the government. - [ ] The assignee must pay a fee. - [ ] The contract must be entirely rewritten. > **Explanation:** For an assignment to be valid and enforceable, the contract must allow the assignment either explicitly or implicitly. ### In legal terms, an assignment primarily involves: - [x] Transferring rights and obligations - [ ] Penalizing the original creditor - [ ] Providing reserved rights - [ ] Retracting a binding agreement > **Explanation:** Legally, an assignment primarily involves transferring rights and obligations from the assignor to the assignee. ### What is a significant reason parties use assignments? - [x] To transfer benefits and responsibilities - [ ] To void contracts altogether - [ ] To increase legal complexity - [ ] To establish new company headquarters > **Explanation:** Significant reasons for using assignments include transferring benefits and responsibilities associated with the contract.