What is an Assignment Addendum?
An assignment addendum is a supplementary document attached to a real estate purchase contract that explicitly grants the buyer the right to assign the contract to a third party. While some purchase contracts already allow assignment by default, others prohibit it or are silent on the topic. The addendum removes any ambiguity by clearly establishing the buyer's right to assign.
What the addendum contains
A standard assignment addendum states: the buyer has the right to assign the contract to any person or entity, the assignment does not release the original buyer from their obligations (unless the seller agrees otherwise), the seller acknowledges and consents to the assignment, and the assignee assumes all of the buyer's rights and obligations under the contract.
When you need one
If the purchase contract prohibits assignment, contains anti-assignment language, or does not mention assignment at all, you need an addendum. If the contract already includes "and/or assigns" in the buyer name or has a general assignment permission clause, an addendum may not be strictly necessary but is still good practice for clarity.
Assignment addendum vs assignment of contract
The addendum modifies the original purchase contract to permit assignment. The assignment of contract is the separate document that actually transfers your rights to the end buyer. You need both: the addendum gives you permission, and the assignment document executes the transfer.
For wholesalers
Having a standard assignment addendum ready to attach to every purchase contract you sign ensures you always have the right to assign. Some sellers will push back on assignment language — be prepared to explain that assignment is common in real estate transactions and does not change the seller's outcome (same price, same closing, same terms).