Wording in Wholesale Contract Deal

[Chani C.]

My real estate attorney is suggesting that in order to create the most transparency, the word "buyer" should be substituted with the word "wholesaler" regularly throughout the wording of the sale agreement. In addition, instead of titling the agreement as a "Purchase and Sale Agreement", she wants to title it "Real Estate Wholesale Purchase and Sale Agreement". I have not seen this wording in any other contract other wholesalers have shared. I'm wondering if anyone has any perspective on why this is so, and whether you have any advice on this.

[Michael Dumler]

@Chani C., Sounds like your attorney is doing their job and trying to protect you as much as possible. I’m not an attorney, and as Ned mentioned, laws around wholesaling are evolving and can vary by state.

That said, to the best of my knowledge, here in Georgia, a standard Purchase and Sale Agreement paired with an Assignment of Purchase and Sale Agreement Rights exhibit is typically sufficient to wholesale a contract. Both parties would need to sign the assignment exhibit, so the seller should be adequately informed after reviewing and signing everything. (Again—just speaking from experience, not offering legal advice.)

Curious—which law firm are you working with?