An assignment of contract clause gives a buyer the right to transfer a purchase agreement to someone else before closing. Wholesalers use it to put a house under contract and sell their contract rights to another investor for a fee. Since March 2, 2026, Ohio law requires wholesalers to provide homeowners with a separate signed disclosure before entering into a binding purchase contract.
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Before signing a cash purchase agreement, look for language that allows the buyer to assign the contract to someone else. I’ve had homeowners contact me after spending weeks under contract with buyers who never closed. My name is Marc Van Steyn, I’m the owner of EasySell Cash Homebuyers and a licensed Ohio real estate agent since 2004.
What Is an Assignment of Contract Clause in Ohio?
An assignment of contract clause allows the buyer to transfer their rights under a purchase agreement to another person or company. The language often appears as “and/or assigns” after the buyer’s name. It can also appear in a separate paragraph elsewhere in the agreement.
Assignment clauses are legal in Ohio. Buyers sometimes use them to transfer a purchase agreement into an LLC they own. Wholesalers use the same language to sell their contract rights to another investor for a fee.
The buyer’s right to assign also depends on the rest of the purchase agreement. Removing “and/or assigns” from the buyer’s name doesn’t necessarily eliminate that right.
How Do Wholesalers Use an Assignment of Contract Clause?
A wholesaler puts a house under contract and markets the contract to investors. The wholesaler earns an assignment fee when another buyer agrees to take over the purchase agreement.
A wholesaler contracts to purchase a house for $150,000 and finds an investor willing to pay $170,000 for the same property. The wholesaler assigns the contract to that investor and collects a $20,000 assignment fee at closing. The original homeowner still receives the agreed $150,000 purchase price, subject to the terms of the sale.
Some wholesalers request a 30 day closing period with inspection rights that allow them to cancel and recover their earnest money. The homeowner’s property stays under contract while the wholesaler looks for an investor.
Wholesalers sometimes come back to the homeowner asking for a price reduction after marketing the contract. I’ve seen these requests happen near the end of the inspection period. Depending on the contract, the buyer may still have the right to cancel without losing their earnest money.
The seller can refuse the reduction. However, the time spent under contract is already gone, and the homeowner may have to start looking for another buyer.
What Happened to an Ostrander Seller Whose Cash Buyer Cancelled?
A homeowner in Ostrander, Delaware County, signed a contract to sell a ranch home on three acres to a cash buyer. According to the homeowner, the buyer couldn’t complete the sale at the agreed price and asked for a reduction. The homeowner refused, and the buyer cancelled the contract.
The homeowner called me after the contract was cancelled. I drove out to Ostrander to look at the house and three acres. I never saw their original purchase agreement, so I can’t say for certain whether the buyer intended to assign it.
We talked about the property, but we couldn’t agree on a price. Before I left, I explained what they could expect from a traditional listing. They wanted to continue looking for a cash buyer.
Homes on acreage around Ostrander can be harder for wholesalers to sell to another investor. The pool of buyers interested in rural properties is different from the investors purchasing houses in Columbus neighborhoods.
If you own property in that area, you can read more about how we buy houses in Ostrander.
How Does Ohio Law Treat an Assignment of Contract Clause?
Ohio’s new wholesaling disclosure requirements took effect March 2, 2026. Senate Bill 155 created ORC 5301.95, which specifically regulates residential real estate wholesaling.
The law applies to residential properties containing one to four dwelling units. Before entering into a binding contract, a wholesaler acting as the buyer must give the homeowner a separate written disclosure. The disclosure must be printed in bold type using at least a 12 point font. Both the wholesaler and homeowner must sign and date it.
The disclosure explains that the wholesaler is acting on their own behalf and doesn’t represent the homeowner. It states that the wholesaler may assign the contract to another buyer without the homeowner’s consent and collect a fee. It also warns that the agreed purchase price may be below market value.
A homeowner who wasn’t given the required disclosure can cancel the contract before the close of escrow without penalty. Under the law, the escrow or closing agent must release any earnest money paid by the wholesaler to the homeowner within 30 days after cancellation.
These disclosure requirements and cancellation protections cannot be waived through the purchase agreement. The law also provides for enforcement under Ohio’s Consumer Sales Practices Act.
The Ostrander homeowner signed their contract before the new law took effect, so those protections weren’t available under the law at that time.
Columbus also requires real estate wholesalers operating within city limits to register with the City of Columbus Department of Building and Zoning Services. That requirement is found in Columbus City Code Chapter 4518 and took effect in 2025. Columbus’s registration requirement doesn’t apply to properties in Ostrander.
How Can You Tell if a Contract Is Assignable?
Look for “and/or assigns” beside the buyer’s name. Also check the rest of the contract for language allowing the buyer to transfer their rights to another party.
Pay particular attention to the inspection period and cancellation terms. A buyer with 30 days to inspect a property and the right to cancel without losing earnest money has considerable flexibility. A wholesaler could use that time to find another investor.
Ask the buyer for proof of funds and get the name of the person or company that will take title at closing. Proof of funds alone doesn’t establish that the buyer intends to complete the purchase. Find out whether they’re purchasing the house themselves or planning to assign the contract.
Check how much earnest money the buyer is depositing and the circumstances under which it becomes refundable. The amount of the deposit matters less when the contract allows the buyer to recover all of it by cancelling during the inspection period.
You can also ask to remove the assignment language and require your written consent before the contract is assigned to another party.
Have an Ohio real estate attorney review the purchase agreement before signing. That’s the advice I give homeowners, including people selling to EasySell Cash Homebuyers.
How Is Selling to a Direct Cash Buyer Different?
EasySell Cash Homebuyers purchases houses directly and doesn’t assign its purchase contracts to other investors. Our purchases go through my RE/MAX brokerage using the Columbus REALTORS purchase contract.
EasySell Cash Homebuyers puts down $10,000 in earnest money. In the traditional sales I handle, earnest money is commonly between 0.5% and 1% of the purchase price.
We pay all closing costs except property taxes and don’t charge homeowners a commission. Closings take place through established local Columbus title companies. Our fastest closing is 10 days, although homeowners can choose a later date.
Our company policy is to honor the purchase price we agreed to when signing the contract. We don’t use inspections to come back and negotiate a lower price after tying up someone’s house.
EasySell Cash Homebuyers also holds an A+ rating with the Better Business Bureau.
You can read more about our purchase process on our sell my house fast Columbus Ohio page.
Is Selling for Cash the Right Choice?
Not always. Most homeowners will get more money by listing their house with an agent.
The homeowners who sell to us often have properties that need repairs they don’t want to make. Some need to close quickly, while others have inherited a property they don’t intend to keep.
Our guide to selling a house as is in Columbus, Ohio explains what homeowners can expect when selling without making repairs.
You can also read our guide to selling your house to a Columbus real estate investor for more information about evaluating cash buyers before signing a contract.
Before signing a cash purchase agreement with an assignment clause, call EasySell Cash Homebuyers at 614-969-0624. I’ll explain how our purchase process works and what you should review in the other offer.
Frequently Asked Questions
Can a cash buyer lower the price after signing the contract?
A buyer can ask for a price reduction, but you don’t have to agree. Some wholesalers request reductions after failing to find an investor at the original price. The buyer’s ability to cancel depends on the terms of the purchase agreement.
How long do wholesalers keep a house under contract?
The length depends on the purchase agreement. Some wholesalers request 30 days or longer to find another investor. Review the closing date, inspection period, and cancellation provisions before signing.
Is an assignment of contract clause legal in Ohio?
Yes. Ohio allows assignment clauses in real estate purchase agreements. Since March 2, 2026, ORC 5301.95 requires qualifying wholesalers to provide homeowners with a separate signed disclosure before entering into a binding purchase contract.
Can I stop a buyer from assigning my contract?
You can ask to remove the assignment language and add a clause requiring your written consent before any assignment. An Ohio real estate attorney can review the agreement and prepare the appropriate language.
How long does it take to sell to EasySell Cash Homebuyers?
Our fastest closing time is 10 days. Homeowners can also choose a later closing date that works for their situation.
Legal Disclaimer
This article is for general information only and isn’t legal advice. Ohio law and local codes change, so talk with a qualified Ohio real estate attorney about your contract.
