Investor · Atlanta, GA · Member since 2017 · 18 posts · 6 votes
I am a wholesaler and was looking for some insight. My contract states that I choose the closing attorney and I have a seller who wishes to use their closing attorney. If I am to turn around and sell their property to an end buyer, is it possible to use their closing attorney for this? Or is it recommended to use my own closing attorney?
It probably depends on what functions the lawyer is performing. If the lawyer is involved in negotiations or other aspects of the transaction, it's usually better for each party to bring their own lawyer because of the potential for conflicts of interest. On the other hand, if all that's being done is standard closing paperwork, you can probably use the same lawyer for two transactions involving the same property.
For more information, take a look at Rule 1.7 of the GA Rules of Professional Conduct.
Disclaimer: the information provided above does not create an attorney-client relationship with me and is not intended as legal advice. Please consult a lawyer for advice specific to your unique situation.
@Jacob Rhein I appreciate the response. The question I am getting at is that I am not the end buyer so once I purchase the property from the seller I will be turning around to sell it or I will do an assignment on the contract instead of a double closing. Could this deal still be done using the seller's closing attorney or is it wiser as a wholesaler to use my own closing attorney for the deal?
with wholesale deals use your own representation/attorney. they understand what you are doing. in this case this is the best way. 1. let your end buyer/investor know what is going on. 2. in your agreement between yourself and your investor it will show that you are secure in your assignment fee. 3. You can also state that you "partner" is going to closing the deal out, thus taking over your position which is what an assignment is. 4. if there is any other addendums or documents needed the lawyer will provide them. You should be ok as long as your relationship with your end buyer is cool and trust is there. Good luck
@Gerald Harris Ok this answers the question for me. I appreciate the response. So what would you recommend in the event that a seller is adamant on using their own attorney?
Your deal likely doesn’t retain the attorney for your second closing. Furthermore, I would avoid doing any transaction that resembles a wholesale if I were that attorney. Why would they risk their license to practice law to assist someone who won’t get a real estate license which is a simple license to get? Substance over from - in most states it’s illegal even if double closing
@Maurice Ford You should be good to go. From here on out you use the term "me and my partner" or "my partner and I" to give sellers an indication you are teamed up with someone. No worries. If the deal is that attractive your cash buyer/investor will close it with the attorney. No worries. Just make sure you have trust. If sellers wish to use their attorney that's cool. Just make it clear you are working with a partner. good luck
Thank you @Rashard Alomari, @Gerald Harris, @Jacob Rhein, and @Gregory B. for your responses. You have cleared up my questions perfectly. @Rashard Alomari I would like to connect with you. I have a property in TN I am trying to get sold. Perhaps we can accomplish something great.