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In this tutorial, the narrator explains contract assignments in real estate. They begin by clarifying the intended use of assignments, then illustrate with an example involving an investor who initially agrees to purchase a property believed to have a slab foundation. During due diligence, the investor discovers the property actually has a basement, which they prefer to avoid. Faced with the choice to either back out of the deal or pivot, the investor can assign their rights in the purchase agreement to another investor who is interested in properties with basements, demonstrating how assignments can provide a strategic solution in real estate transactions.
