Updated about 4 years ago on . Most recent reply
whole selling issue. sellers are wanting to backout sign contract
So I signed a seller up on an assignment contract and 2 weeks later they called and said they changed their mind and do not want to sell. What legal options do I have? What would prevent them from cancelling with me and just selling to someone else for more money? I also fronted them 1k to help with their moving expenses which they have told me they will pay me back monthly. Any advice. I don't want to beat these people down because life is extremely hard. but I also want to learn the right way and hold people accountable.
Most Popular Reply
@Dee Brock Fun fact #1 - unlicensed wholesaling is illegal in most if not all states. Selling a property you don't already own (as in your name is on the title) is a license-required activity. That's why real estate agents spend $1,000+/year to be licensed.
Fun fact #2 - that means that your contract was formed for an illegal purpose, even if the seller doesn't know that yet.
Fun fact #3 - contracts formed for an illegal purpose are not just voidable, they are actually void at their inception.
If you can get any part of your $1,000 back, be grateful. If you don't get it all back, take your lumps and move on.
A better way forward is to get your real estate license and operate above the law.
Wholesalers already do most of the same work as a Realtor. You just need to get that license to do it legally - that and subject yourself to the laws that are in place to protect the consumer.