A partner in the Brooklyn-based law firm of Treff and Lowy, PLLC, Joseph Treff represents clients engaged in buying and selling real estate, as well as matters such as real estate development, syndication, and financing. Joseph Treff also undertakes negotiations and contracts concerning the structuring and formation of complex real estate joint ventures and partnerships.
An assignment of contract allows the original owner or debtor in the agreement, or assignor, to turn over to a third party his or her responsibility for the asset, as well as any benefits, such as revenues, appreciation, and use. In most cases, the assignee, or party that takes possession of the asset, also assumes all obligations associated with it, including related costs and taxes. Nonetheless, some assignments require the original assignor to guarantee the terms of the original contract regardless of the assignee’s promises of performance.
Some original contracts prohibit the transfer of the agreement via assignment, while others nullify an assignment that alters the terms of the initial arrangement. In addition, most courts refuse to recognize an assignment of contract that violates statutes or laws. Many assignments of contract involve real estate transactions in which the owner of a commercial or multifamily residential property assigns contracts for management, maintenance, and other critical functions.