how does an assignable contract work?

Question

Say if I buy the property for 200k from the developer on a assignable contract, I then assign/sell it for 250k, how do I get my profit. Who does my buyer complete with?, me or developer.
Pls can someone help?

Answer 1

I assume this is like a Future Contract for Commodities.

You buy something (eg. Copper) at XXX and sell it on at XXX+n ... who-ever ends up with the Contract takes delivery of the actual product (Copper).

So in this case, you purchased the Contract 200k and sold it on.

You you paid (or owe) the Developer 200k & the Buyer pays (or owes) you 250k. That's the end of your involvement.

The Buyer now 'owns' the Contract (with the Develper) and can either sell it on again or wait and accept delivery of the actual Property.

So it's who-ever ends up with the Contract that has to 'complete' the transaction (with the Builder) and recieve the property.