Wording in Wholesale Contract Deal

Member since 2025 · 1 post · 0 votes

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.

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Michael Dumler

Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes

@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?

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Ned CareyPro Member
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Investor · Baltimore, MD · Member since 2008 · 17k+ posts · 13k+ votes
1y
@Chani C. I see this is your first post welcome to BP

I have never seen that. The laws are changing regarding wholesaling and I don't know what GA law may say. You attorney may have a specific reason for wording it that way.

In virtually all states finding a buyer for a seller without real estate license is "Practicing real estate brokerage without a license"

How that gets interpreted in your state may depend on how the contract is written.
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Michael Dumler
Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
1y
@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?
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Tom GimerBusiness Member
DMV · Member since 2017 · 3k+ posts · 3k+ votes
1y
That sounds like a surefire way to have a seller say "No Thanks" to an offer after reading it.
You can be transparent without blowing up the deal from the outset.
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