Wholesaling Contract Question

3 Replies

Hey guys. I was wondering where we can obtain a PA state approved wholesale contract. Is there a website we can visit to purchase one or will we need to have an attorney draft one?

@Jose Vazquez

Such a thing does not exist. That said, I suppose theoretically any agreement of sale could serve as a "wholesale" contract. But you'll need to be up to date on realty transfer tax issues and other possible legal issues when it comes to wholesaling. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.

@Jose Vazquez

It seems like most wholesalers either: (1) assign the sales contract; or (2) record an option and collect the termination fee at the point of sale. If you want to go with option 1, you can take any sales contract and assign it. The problem is that doing so can trigger additional realty transfer tax or split the realty transfer tax in ways that people didn't expect.

If you want to go with option 2, then you'll need to prepare some kind of option agreement and record a memorandum of option. This would help avoid any crazy realty transfer tax issues. But I can't imagine there being a Commonwealth approved version of such agreements. 

Disclaimer: While I’m an attorney licensed to practice in PA, I’m not your attorney. What I wrote above does not create an attorney/client relationship between us. I wrote the above for informational purposes. Do not rely on it for legal advice. Always consult with your attorney before you rely on the above information.