Question

As an investor, Kevin decides to assign purchase rights to the River Valley condominium complex to another investor. What Kevin is doing is called __________

Answer 1

Kevin is engaging in an 'assignment of contract,' a common real estate investing practice where purchase rights to a property are transferred to another buyer, often for financial gain.

Step-by-step explanation:

When an investor like Kevin decides to assign purchase rights to the River Valley condominium complex to another investor, the process is known as assignment of contract. This is a common practice in real estate investing where the original buyer (assignor) transfers their rights under the property purchase agreement to another buyer (assignee), often for a fee. This strategy is typically used when the assignor is unable to complete the purchase or has found an opportunity to profit from the transfer of the contract before the closing date of the original transaction.