what if you don't close in time ?

6 Replies

What does your contract say? Where are you located? Who chose the closing time/date? Are their attorneys or title companies involved yet?  I'm not sure if you have a deal yet and are asking, or if you are just "going to wholesale" and you are doing research.

I have seen a wholesaled property that was on "the market" for 4-5 months. I'm not sure it ever sold or if the wholesaler ended up renovating themselves. I imagine their contract allowed them plenty of time (although the seller did not know it was being wholesaled).

If you don't perform under the terms of the contract, Seller can exercise remedies as outlined in the contract.  Typically, this means they can keep your earnest money and terminate the contract.  Less commonly, they can sue for specific performance (this is more likely a purchaser remedy in the event seller balks at closing).  Before you get to that point, you should ask the seller for an extension.

I would suggest getting your real estate license before trying to wholesale properties. It only gets more complicated from here.

@Brian Pulaski   I don't have anything under contract  at the moment i was just wondering what would happen if couldnt close on time.  @jeff ledyard thanks for the insite where do you typically get your contracts ?   thanks as well @jason hirko 

I am a hard money lender (and investor in commercial real estate).  My commercial contracts are drafted by attorneys (or myself).  For residential, depending on what state you are in, there could be a board form available (check with your realtor).  Here in Texas there is a pretty solid form contract available to buyers and sellers of residential properties.

Originally posted by @Jeff Ledyard :

I am a hard money lender (and investor in commercial real estate).  My commercial contracts are drafted by attorneys (or myself).  For residential, depending on what state you are in, there could be a board form available (check with your realtor).  Here in Texas there is a pretty solid form contract available to buyers and sellers of residential properties.

 TREC and TAR are probably the most common, will work for most residential transactions with appropriate Addendums, etc.