Covington County Assignment of Contract for Deed Form (Alabama)

The following Alabama and Covington County supplemental forms are included as a courtesy with your order:

When using these Assignment of Contract for Deed forms, the subject real estate must be physically located in Covington County. The executed documents should then be recorded in the following office:

Local jurisdictions located in Covington County include:

• Andalusia
• Florala
• Gantt
• Lockhart
• Opp
• Red Level
• River Falls
• Wing

This form can be used to assign either the seller’s interests or the buyer’s interests from a Contract for Deed, Land Contract, Buy-Sell Purchase Agreement, etc.

Benefits for the Seller (Assigning Their Interest)
When a seller assigns their interest, they are transferring the right to receive remaining payments under the contract for deed to another party (often an investor or note buyer).

Why a seller would assign a contract?
Immediate Cash Flow: Seller may receive a lump sum from the assignee (investor), converting future payments into immediate cash.

Eliminates Management Responsibilities: The assignee takes over duties like collecting payments, managing defaults, and conveying title when terms are met.

Reduced Legal Risk: Once the interest is legally assigned and recorded, the original seller often has no ongoing obligations (depending on contract terms).

Portfolio Liquidation: Enables sellers to exit long-term financing deals or offload multiple contracts as part of estate or investment planning.

Example: A seller assigns a $40,000 balance of a contract for deed to an investor for $32,000 cash. The investor now collects monthly payments and holds title until the buyer pays in full.

Benefits for the Buyer (Assigning Their Interest)
When a buyer (vendee) assigns their position, they are transferring their right to purchase the property (and duty to pay remaining installments) to a third party.

Why a buyer would assign a contract?
Exit Strategy: Buyer can exit a property purchase they no longer want, need, or can afford.

Profit Opportunity: If the property has appreciated or favorable terms were negotiated, the buyer can sell their equity and profit from the assignment.

Avoid Default: Buyer avoids foreclosure or forfeiture by transferring the contract to a willing party.

Flexibility: Allows creative structuring of deals, especially in "subject-to" or lease-option-style transactions.

Example: A buyer who paid $10,000 down and owes $50,000 may assign their contract to another buyer for $15,000, netting $5,000 profit.

For use in Alabama only.

Our Promise

The documents you receive here will meet, or exceed, the Covington County recording requirements for formatting. If there's an issue caused by our formatting, we'll make it right and refund your payment.

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