192. “and/or assignee” ON RESIDENTIAL SALES IS A RED FLAG

It is quite common for commercial buyers to purchase commercial property under their name with “and/or assignee”. This is very common in commercial sales, but using “and/or assignee” is not as common in residential sales. Recently, it has recently come to our attention that using the assignment clause in a residential purchase allows fraudulent buyers an opportunity to disguise the complexity of the fraud they are perpetrating. For this reason Gilleran Griffin will red flag residential sales involving assignments. This means you should report to management any peculiarities that arise during escrow and you should be particularly concerned about an actual assignment which may take place. “Assignee” is used today in place of “nominee” but there really is no meaningful difference between the two terms. “Assignee” is more popular with most agents and attorneys.

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