When wholesaling a contract, and you do not have an entity and you plan on assigning the contract do you put your name on the contract as buyers, and at closing the attorney uses the assignment of contract to close in the right name. or do you leave the buyer section blank and when the contact is assigned the attorney puts the assignee's name on the buyer's line in the contract? please explain
1. You can use your name. A contract form with no buyer stipulated is not a contract.
2. Get your attorney to draft an assignment agreement
3. Make sure before you get the property under contract that it's truly an investment grade property that you intend to purchase if you can't find an assignee
In Washington State you must list the buyer as 'Your name and/or assigns'
Otherwise your contract is not assignable and you will be obligated to the contract. Unsure if this is the same everywhere else but it seems likely.
Great, so if i put it under contract just put it my name/assign?. then use the assignment contact with the buyer. ofcourse the buyer will be knowing im assigning it. or just put my name and let the assignment contract do the rest?
"Rod Coleman or assigns" should work, although I address my ability to assign the contract in a special provisions sheet I incorporate into the contract. Just remember that if you assign the contract and the assignee fails or refuses to perform under the contract, you're likely still on the hook for the purchase unless your contract specifically states the seller will look only to assignee for performance and will release you from any further obligations upon the assignment.
i have a financing contingency in mine i believe
Do you have an copy of your contract?
The financing contingency better run through the date of closing or it won't do you any good...you'll still have liability.
Would love to help you but my contract is attorney drafted specifically for Texas. I recommend you not step over a dollar to save a dime. Get an attorney in your state to draft a buyer friendly contract with state specific disclosures, notices, etc. It will be worth its weight in gold should another attorney wish to make your life miserable in order to make a name for himself/herself.
what do you mean run through the date of closing, im assuming that if i can't come up with the money/ie a buyer then the contract is dead correct.
If your financing contingency expires prior to the closing date (but expiration of the contingency does not automatically terminate the contract) and your assignee fails to close as expected at the contracted closing date, then you may still be on the hook since the contract is still in play but you failed to close. This of course assumes the seller has not agreed contractually to look only to the assignee if it doesn't close.
humm....., that makes sense but when your and and/ or the assingee in the buyers blank of the contract. that should cover both of us if financing falls threw since we bother are depending on financing. i think you are perhaps making it seem more difficult then it is. how can the financing end before the closing date. if the financing doesn't come it doesn't come end of story. am i wrong
Sorry I'm making it difficult....guess I'm wrong. As you say...end of story.
Continued success to you.
My apologies guy if you feel like I'm not listening to you, that's not the issue. so let me rephrase the statement. a lawyer has to fellow the outline of the contract and its stipulations. if the purchase is contingent upon financing then that should mean just that. right. If a person has a clause in any kind of contact then the clause must be adheard too as long as both parties are in sound mind and are not under stress at the time of the signing. as long as all parties understand completely its a legal document. I know something about contact law i wen to school for business, and learning contract law was part of it. now does that mean the person can purse you and try to force you to buy the property. However if the contract states clearly that the purchase is contingent upon financing for its execution then that's what the contract states its not up for interpretation. this is the understanding i have from my classes. i don't know if i am correct do its always smart to reach out to professionals and ask them first.
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