BiggerPockets

I think i see my first deal going bye bye.I already have a signed contract and my time period to find a buyer is not up yet. The seller wants to now sell property to a family member. He says the family member has title company lined up.I have a potential buyer who is supposed to get back to me. Do i just let the time period expire and allow him to sell to family member or do i hold him to our contract he signed and proceed with finding a buyer.The only one i see losing in this situation is me.

Tamarra

If the seller wants out make it a condition on them signing a 12 month deed restriction giving you the first right to purchase

I was just wholesaling the property. I wasnt going to keep the property for myself. The contract used was an option to purchase real estate with ccntigencies to include finding a buyer in 21 days. The 21 days arent up yet.I'm going to see if i can still assign the contract to the family member. I will just accept a lower assignment because i rather get a little something than nothing at all.

Tamarra,

Jay and James are absolutely correct... make noise that you are going to cloud the title and they will either have to pay you to release your equitable interest in the property or allow you to fulfill the contract.

I had this exact situation occur a couple of years ago and ended up making $5K by having the owner buy me out of my position to purchase their property.

On a side note... I am wondering why you allowed yourself to be in a relatively weak position by executing an option contract instead of a purcase contract?

Best of luck!

Pete

After talking to the seller again, he is going to adhere to our contract and give me the time to find a buyer.

@ Peter - This is my first wholesale deal. The contract I used is an option to purchase real property contract. Is this not the right contract to use with the seller?

Tamarra,

Chris's point is critical. If something of value (cash) was exchanged for the option then you are in a better position... because you do have a contract.

Without reading the option agreement it is hard to speculate beyond that... however with a straight purchase agreement you have taken an equitable position in the property and gives you many advantages that an option by itself might not give you.... it would depend on how a judge evaluates the agreement... and your only recourse had the seller walked away would have been to take them to court. Probably not worth in this situation... but by using the most effective instrument you can avoid many obstacles.

Where in Maryland is the property located... as I may have client or two interested.

Best of luck getting this property wholesaled.

Pete