These are tough times. But thoughtful choices can stretch the dollars you get.
What is an assignor?
In legal terms, an assignor is a person, company or other entity that holds rights to a piece of intellectual, physical or other property and transfers those rights to another person, business or entity known as the assignee.
When assigning property, the assignor can impose limits on the assignee that pertain to conduct concerning the property.
In essence, an assignment occurs when a property owner or holder decides to sell the rights of that property to the assignee. When assigning property, an assignor draw up a contract naming the individual, entity or business to whom he or she is assigning the property. The contract also contains any stipulations about how the assignee can use the property.
When both parties are happy with how the contract is worded, an exchange of funds and property takes place and the contract is signed.
To legally sell a piece of property, the assignor must hold the rights to that property. If another individual or company feels that the assignor does not own the rights to the property sold, they can contest the sale in court.
To prove ownership, the assignor must possess documents, such as a title, deed or contract, stating that he or she is the holder of the rights to the sold property.
In real estate, an assignment of property often takes place before a home is built, with the assignor purchasing the rights to the property and then selling them to the assignee at a price above what was initially paid for those rights.
In addition to an assignment of physical property, assignors also can sell intellectual and contract rights to people or other entities. Just like property rights, the assignor might need to prove ownership of the rights if challenged in court.
In an assignment of physical property, the assignor must hold the deed or rights to the land, including mineral rights. In addition, the assignee must pay any applicable taxes and fees associated with the property upon purchase. Transfer of physical property is the most common type of assignment.
Patents, copyrights, trademarks and trade names represent another type of property that you can assign. This type of property is called intellectual property. Transferring such property requires a contract just like physical property.
Contract rights are a third type of right that an assignor can transfer to another person or entity. The assignee is a third party that assumes the contract’s obligations, although the other party in the contract must be notified by law of the change.
In addition, if the assignment violates the law or makes changes to the original contract, a court might rule against enforcing the assignment. Some cases where restrictions prohibit assignment include in personal injury cases, claims against the government and assignments of future wages by an employee.