Buying from a wholesaler?

5 Replies

Im going to buy a lot from a wholesaler. If he asks for a dd, hat can i do to safeguard myself in case any liens show up. I assume he is not a licensed realtor, so i would assume a dd contract would be less legitimate. It's an empty lot, so besides a survey (which i'm afraid could take awhile). I can't think of any other things i need to get inspected. 

I told him my lawyer will probably be able to close on it in about a week, so it will be fast close. 

what do you want the lot for what are you going to do with it once you buy it.. that could be a determining factor how you proceed.

Originally posted by @Sean H. :

Im going to buy a lot from a wholesaler. If he asks for a dd, hat can i do to safeguard myself in case any liens show up. I assume he is not a licensed realtor, so i would assume a dd contract would be less legitimate. It's an empty lot, so besides a survey (which i'm afraid could take awhile). I can't think of any other things i need to get inspected. 

I told him my lawyer will probably be able to close on it in about a week, so it will be fast close. 

 What is a dd?

I was going to build a spec home. I already went to the planning department to determine the setbacks i had to abide by for the lot. 
It's a small corner lot. 

It right near the heart of downtown surrounded by houses, so im pretty sure i dont have to worry about utilties. 

dd=due diligence. 

@Sean H. - make sure the contract you sign states that the lot will be delivered to you with clear title and without liens. If he tries to use a "DD" to skirt that, I'd be leery. 

Check that the area is served by a sewer, otherwise you need to have a perk type test to make sure that the soil will support a septic system.

You may also want to call the utility servers to ensure that they have capacity.  It is not unusual in some parts of the country that have droughts to have new water connections limited or on a wait list.

Also you need to check the historical use of the lot.  Was it a gas station in the 1950's?   If so you could have underground tanks that were abandoned in place that will cost to legally remove.  Same idea with past residential use and an old septic tank.  Or hazmat if it historically was an industrial operation.  Check the EPA site for HAZMAT sites.  You get the idea?