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In real estate, assigning contracts can be complex. The narrator explains the intended use of assignments and illustrates this with a scenario. A real estate investor who prefers properties without basements enters a purchase agreement for a property claimed to have a slab foundation. Upon discovering a basement during due diligence, the investor has two choices: back out of the deal or assign the rights of the purchase agreement to another investor who is open to properties with basements. This process highlights the flexibility and strategic use of assignments in real estate transactions.