Assignment
Transferring contractual rights to a third party, while the original party often remains secondarily liable.
Assignment transfers a party's rights and interests under a contract to a third party, the assignee. Unless the contract prohibits assignment, most real estate contracts can be assigned. The assignee steps into the assignor's position to receive the benefits of the contract.
In an assignment, the original party (the assignor) commonly remains secondarily liable if the assignee does not perform. To remove that liability entirely, the parties would need a novation.
On the exam
Exam trap
Tested in
Contracts & Agency (13% of the exam)
From definition to recall
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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.