Flipper/Rehabber · Atlantic County, NJ · Member since 2012 · 514 posts · 209 votes
I need an answer from a true wholesaler/investor. Do I need a C.O to assign/double close a property in as/is condition? I've never heard of wholesalers having to have one but my attorney said, that in SOME municipality's you need one. I know what you're gonna say... Listen to your attorney! I just can't get past the thought that I don't need one. I'm not buying the property to live in, I'm assigning it as/is. Wouldn't the responsibility fall on the buyer before he rehabs and sells back on the market?
Investor · Sarasota, FL · Member since 2008 · 17k+ posts · 17k+ votes
14y
This isn't true in my area (nor in any I've ever heard of), but perhaps in yours. Ask your atty for more details and to show you the statute is you're skeptical.
Investor, Entrepreneur, Educator · Springfield, MO · Member since 2009 · 21k+ posts · 12k+ votes
14y
Why do you have an attorney?
It may not be in the statutes, it could be that while at the country club playing golf with some other attorneys that one was telling how he and his client took a seller to the cleaners because they didn't disclose.
You're paying for your attorney's advice based on his judgment, knowledge of actions as welll as statues.
Selling "as is" is not always a get out of responsibility card, hidden defects is one thing, known and not disclosed could still be fraud.
Rehabber · Tucson, AZ · Member since 2008 · 1k+ posts · 802 votes
14y
Originally posted by Nathan Paisley:
I need an answer from a true wholesaler/investor. Do I need a C.O to assign/double close a property in as/is condition? I've never heard of wholesalers having to have one but my attorney said, that in SOME municipality's you need one. I know what you're gonna say... Listen to your attorney! I just can't get past the thought that I don't need one. I'm not buying the property to live in, I'm assigning it as/is. Wouldn't the responsibility fall on the buyer before he rehabs and sells back on the market?
[/b]I need answers!
1. Ask your attorney to give the specific statute to which he/she is referring.
a. Is the basis a change in or a transfer of ownership. If so, can you assign the contract?
2. If no specific statutes exist, ask if disclosure and a acknowledgement would suffice.
3. If no statute exists, you could try another attorney. If you are using a closing attorney, they tend to be more conservative. You might try a family law attorney who practices real estate as they might be less conservative.
Remember, an attorney's fiduciary duty is to keep you (and ultimately himself/herself) out of trouble. Some attorneys choose to do accomplish this by helping formulate a plan of action designed to mitigate risk, while others choose a method of placing road blocks hoping to deter their clients from acting.
While what your attorney says may very well be legitimate, you need to decide if he/she is helping or hurting your business.
Flipper/Rehabber · Atlantic County, NJ · Member since 2012 · 514 posts · 209 votes
14y
I appreciate the responses. My attorney has been doing RE for 16yrs or so but wholesaling is new to him. He understands assigning and double closes but I'm not sure he understands wholesaling EXACTLY.
Yes, the basis is in transfer of title seems to be the problem area. I think I can assign the contract with no problem with as/is but not sure about double closing... I'm new to this but I have NEVER heard anyone or read ANYTHING about this when it comes to wholesaling.
When assigning I'm not taking ownership so why would I need a C.O? Do a double close I take ownership for a split sec. I can see needing one in that situation. There are no wholesalers in my area to talk to or REI clubs to dig up this info. I only care because it could prolong the timing of a quick deal.
Wholesaler · Salt Lake City, UT · Member since 2009 · 1k+ posts · 401 votes
14y
No you don't need a certificate of occupancy to sell a property, you just need one for someone to occupy the property. No CO, no tenant or owner can live there and i have had a few times where the utilities could not be hooked up to work on the place without a big hassle and bowing before the utility gods.