Assignment

In depth

Assignment transfers the assignor's rights to the assignee. Promissory notes can be assigned by endorsement and delivery, often using an allonge. Mortgages and contracts for deed are assigned by recorded assignment documents. Misconception: assignment is not the same as novation; assignment transfers rights but the original obligor's identity does not change. Practically, in seller financing, sellers often assign their notes to investors for cash. The assignee steps into the seller's shoes for collection rights, with the original buyer continuing to make payments to the new payee. Assignments must be recorded to perfect the assignee's secured interest. Note buyers conduct due diligence on the underlying property, payment history, and documentation before purchasing.