BACK TO BACK ASSIGNMENTS · CREATIVE PROPERTY SKOOL HUB

BACK TO BACK ASSIGNMENTS

Here’s a clear, practical summary of how Back to Back Assignments or it is sometimes called as Double Settlement works and what to watch out for:

🔑 What this agreement is

It’s a “back-to-back” (double settlement) property agreement, where:

•Party A (Bodrum Property Group Ltd - in this case for instance) acts as an intermediary.

•Party B is the seller

•Party C is the end buyer

The structure allows Party A to:

Secure the property at a lower Option Price

2.Sell it on at a higher End Buyer Price

3.Complete both transactions on the same day and keep the difference as profit [1]1

💸 How the money flows

On completion:

•Party C pays full purchase price to Party A’s solicitor

•Party A’s solicitor pays Party B the agreed Option Price

•The remaining balance = Party A’s profit [1]1

👉 Important: The seller explicitly agrees they do NOT get any share of this profit [1]1

⏱️ Exclusivity (very important)

•Seller gives Party A 60 days exclusive rights to sell the property.

•During this period, the seller:

•Cannot market the property elsewhere

•Cannot accept other offers

•Cannot instruct agents or brokers [1]1

👉 If they breach this, Party A can seek legal action (damages or injunction).

🔁 Flexibility for you (Assignment clause)

Party A has a very strong advantage:

•Can assign the deal to another buyer without seller consent

•Can bring in another investor/assignee if needed [1]1

🔄 How the deal actually works:

•Party A finds a buyer (Party C) at a higher price

•Solicitors arrange simultaneous completion

•Ownership transfers and funds move in one coordinated process [1]1

👉 This avoids Party A needing their own funds to buy first

⚖️ Key obligations:

Party A (you / intermediary)

•Find a buyer within 60 days

•Drive the deal forward with solicitors

•Comply with AML/KYC rules [1]1

Party B (seller):

•Must cooperate fully

•Provide documents + not delay the deal

•Complete sale if contracts exchanged [1]1

Party C (buyer):

•Show funds / mortgage

•Proceed without delays

•Complete KYC checks [1]1

🔐 Other important clauses

•Confidentiality: Terms must stay private for 3 years.

•Termination: Ends if:

•Deal completes

•60 days expires

•All parties agree

•Serious breach occurs [1]1

•Legal jurisdiction: England & Wales.

⚠️ Key risks / things to check

Here are some practical observations (based on the document wording):

1. Strong protection for the intermediary

•Profit is fully retained

•Seller cannot interfere during exclusivity

•Assignment rights are very broad

👉 Great for investors / deal sourcers, but seller needs to fully understand this

2. Seller is locked in for 60 days

•Even if a better offer appears

•Even if Party A doesn’t progress quickly.

3. Profit transparency.

•Seller acknowledges profit but:

•No obligation for Party A to disclose how much they make.

4. Reliance on simultaneous completion.

•If Party C pulls out, the whole structure can fail

•Party A does NOT guarantee completion—only “reasonable endeavours”.

5. Legal advice disclaimer.

•Seller confirms they had the chance to take independent legal advice.

👉 This protects Party A legally.

✅ In plain English

This agreement is designed for property deal sourcing / flipping without using your own capital, allowing you to:

•Control a deal temporarily

•Sell it on at a higher price

•Complete both sales at once.

Ceyhan Sarac

BODRUM PROPERTY GROUP

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