What is an assignment of rights?

An assignment of rights is a legal document that transfers a person’s right to collect a payment or benefit from another person or entity to a third party. This type of legal agreement is commonly used in the state of Washington to transfer certain rights, such as insurance policies, debt obligations, and other contractual agreements. In order to be considered a valid assignment, the original party must sign off on the agreement, which outlines the terms of the assignment. To give an example, say Company A has an agreement with Company B that states that B must pay $10,000 for a service provided by A. Company A can then assign its rights to collect the payment to a third party, such as a creditor. The agreement between A and B would remain the same, but now the creditor would be responsible for collecting the $10,000, instead of A. Assignment of rights must be written and include certain important factors, such as the specific payment that is being assigned, along with the amount and due date. It must also include the full legal names and addresses of both parties. In addition, an assignment of rights should be signed by both parties and notarized. This ensures that the assignment is legally binding and enforceable.

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