By:  Sarah Mabry

In the dynamic landscape of multi-family (MDU) property acquisitions and dispositions, one critical aspect of the process – that may often get overlooked – is the formal assignment or assumption of the existing telecom contracts that, when executed poorly, can negatively impact your bottom line.

At RealtyCom Partners, we take pride in facilitating a seamless ownership transfer, without imposing added fees. We offer personalized assistance to our clients with a dedicated point of contact who manages every step of the process until payments are transferred. In what can take months of follow up with the Service Providers, our goal is to minimize your time and effort, allowing you to focus on more important responsibilities.

Understanding the Formal Assumption Process

  1. Initial Assessment: Before initiating the formal assumption process, we conduct a thorough assessment of the existing telecom contract. Our team reviews 90+ touchpoints in the contract, identifying key clauses for any potential risks or liabilities and revenue streams associated.
  2. Notice of Sale to Service Provider: Providing timely notice to the Service Provider ensures a smooth transfer, and often there are specific notice requirements included in your contract to adhere to. Continuity in service and minimal disruption in recurring revenue is key.
  3. Amendment and Document Preparation: Our team prepares required amendments and vendor forms – and takes the responsibility of gathering and verifying supporting documentation including Proof of Sale documents and preventing W-9 form mismatches. This ensures accuracy and compliance with your contract requirements, avoiding contract default or penalties.
  4. Payment Transfer Facilitation: A seamless payment transfer process is vital to maintaining revenue flow during the assumption. ACH payments have enabled property owners to deposit funds much more quickly and efficiently. For our clients who prefer ACH payments, we help prepare the Service Provider’s specific payment set up forms, reducing the administrative burden and with a more convenient option than traditional checks. Our commitment extends to performing routine audits with the Service Provider through the life of the contract to ensure our clients are being paid correctly.

Optimizing Asset Disposition with Formal Assignment

  1. Enhancing Property Value: Properties equipped with best-in-class services and infrastructure are more attractive to residents requiring reliable connectivity. Agreements with well-negotiated revenue terms are accretive to the sales value. Assigning existing telecom contracts demonstrates to potential buyers that the property is already equipped with essential infrastructure, thereby enhancing its marketability.
  2. Monitoring the Sale Process: RealtyCom Partners understands that the end of an asset’s lifecycle is just as critical as its acquisition. When our clients decide to sell or dispose of an asset, we take proactive steps to monitor the sale timeline to prepare any amendments and initiate a formal assignment of the existing telecom contracts when the asset changes hands.
  3. Legal Obligations: Telecom contracts often contain provisions related to liability, indemnification, and dispute resolution. Our comprehensive due diligence during the acquisition process helps to identify and resolve any outstanding issues or potential risks associated with the asset to safeguard our clients from unforeseen challenges down the road. Assigning these contracts ensures that the new property owner assumes these legal obligations, reducing the risk of legal disputes or liabilities arising from telecom infrastructure on the property.

By leveraging our expertise in the industry and our extensive network of partners, we ensure that the assignment or assumption of existing telecom contracts is handled with precision and efficiency. Our team conducts thorough due diligence to identify and mitigate potential risks, ensuring compliance with regulatory requirements and maximizing revenue opportunities for our clients.

Let us handle the complexities, allowing you to achieve your strategic objectives. If you have questions about how RealtyCom can assist you with your portfolio, please email us at