Carrollton, TX · Member since 2016 · 25 posts · 0 votes
We are supposed to close next week on one of my investment homes. The original buyer just sent an amendment through their agent stating the following:
"Sellers agree that the new buyers will be John Doe and Jane Doe"
This is a cash offer and my agent tells me nothing wrong with it and that I should sign it. I see something fishy here and don't feel comfortable. How can any of this be enforced if the parties change altogether?
The story that I am being told that the original buyer is buying the house for a family member. But my question is can't they transfer the deed after the closing?
"Seller agrees to the change in the new Buyers. Original Buyer shall remain liable to the terms of the contract should the substituted Buyers default". Have him sign too.
"Seller agrees to the change in the new Buyers. Original Buyer shall remain liable to the terms of the contract should the substituted Buyers default". Have him sign too.
My agent tells me that I still own the house until the money changes hands. This means I should have nothing to worry about and shouldn't care about changing buyer.
This is the second house I will have ever sold so I need some help and peace of mind from the pros like you. My agent is reliable but because large sum in commission being at stake, you never really know if my best interest is his highest priority. Thanks in advance!!
Sounds like your first buyer was a wholesaler, right? He's arranged a buyer and is likely getting a finder's fee from that buyer. At least that's what all the podcasts make it sound like.
How can I tell if my buyer is a wholesaler? Like I said, whet they are telling me is that the original buyer is buying a house for a close relative and his wife.
I mean if the buyer was a wholesaler wouldn't he or she would have just made the contract assignable and do a double closing. It could just be some other reason.
Unless the original contract specifically prohibits Contract re-assignment, what they are proposing is no different that what probably more than half of Bigger Pockets wholesaling threads encourage!
I am a regular joe and don't even know what wholesaling is. I have a few homes that I have bought over the years and rented out. I am trying to cash in on this particular investment because it has appraised so handsomely. I am not scared of anything. Just worried about ending up being a victim of some kind of fraud because of not knowing something that may be obvious to you folks, hence asking here. Thanks all for everyone chiming in.
I wouldn't sign it ... what the original buyer is telling you makes no sense. If he were buying the property for a close family friend and his wife, then why would he have not put them on the original contract? Sounds to me like he is lying and definitely a wholesaler. If he is not, then he will close on the property as the buyer as originally agreed. If he is, then he lied to you and never had the intent or ability to close on your property as promised; after it falls out of escrow you can put the property back on the market and probably sell it for more money, maybe even to John and Jane Dough that he tried to swap in, who were your real buyers all along anyhow. Your RE agent is not advising you to do this because it would be more work for them, even though it would likely net you more on the sale. So, if it were me, I'd call BS on the original "buyer" and not sign.