wholesale contract

11 Replies

I was wondering if someone could help me I was trying to do a contract on assignment but I don't know what my contract should look like if you can send me a template or lead me in the right direction I would be so grateful thank you

If you join as a plus member, you will get access to some forms and likely find an assignment contract you can copy.

Originally posted by @Khamal Davis :

I was wondering if someone could help me I was trying to do a contract on assignment but I don't know what my contract should look like if you can send me a template or lead me in the right direction I would be so grateful thank you

 Give me your email and I would send you a template that I use here in NJ

Gentlemen,

I am putting together a contract now and am second guessing myself since this is my first wholesale.  Is it possible to email me a sample contract that you use?  

Thank You.

JQ

I would highly advise against using templates of contracts you find online and highly advise against handing out templates with the intention that your template be used in another person's transactions. The first could result in your contract not adequately protecting your legal interests if this went to court (because all transactions and jurisdictions are unique), and the latter being the unauthorized practice of law, which could net serious fines and jail time.


Talk to a local attorney for a contract.

@Matthew Kreitzer I would have to respectfully disagree that creating or sharing a contract is the practice of law.  If that were the case every contract for sale, rental agreement, bill of sale, partnership agreement drawn up would be practicing law.  There are hundreds of boiler plate versions of these contracts that can be shared and are even sold online and even in Office Depot, this is not practicing law. Now if I draw up a contract for a transaction I'm not involved in and answer legal questions about the contact for @Khamal Davis and charge him a fee, then that would be practicing law without a license.  Just my thoughts on the subject. Good Luck!

Originally posted by @Cameron Skinner :

@Matthew Kreitzer I would have to respectfully disagree that creating or sharing a contract is the practice of law.  If that were the case every contract for sale, rental agreement, bill of sale, partnership agreement drawn up would be practicing law.  There are hundreds of boiler plate versions of these contracts that can be shared and are even sold online and even in Office Depot, this is not practicing law. Now if I draw up a contract for a transaction I'm not involved in and answer legal questions about the contact for @Khamal Davis and charge him a fee, then that would be practicing law without a license.  Just my thoughts on the subject. Good Luck!

 Disagree all you want, but my state at least says any services rendered to another person that denotes knowledge of the law constitutes practice of law, and the preparation of forms or provision of forms in contemplation that they be used specifically equate to the practice of law. I would highly recommend consulting with an attorney before sharing your forms with another person. As an attorney licensed to practice before my state and the federal courts, I say you run extreme risks trading contracts. 

A similar definition appears to be in use in Florida:

" if the giving of [the] advice and performance of [the] services affect important rights of a person under the law, and if the reasonable protection of the rights and property of those advised and served requires that the persons giving such advice possess legal skill and a knowledge of the law greater than that possessed by the average citizen, then the giving of such advice and the performance of such services by one for another as a course of conduct constitute the practice of law." (The Florida Bar v. Sperry, 140 So. 2d 587, 591 (Fla. 1962) 373 U.S. 379 (1963))

Of particular interest in the present case would be the application of The Florida Bar v. Fuentes, 190 So. 2d 748 (Fla. 1966) and The Florida Bar v. Town, 174 So. 2d 395 (Fla. 1965). I would argue that, in this case, if these forms were prepared by a non-lawyer and then sold to or given to another individual, that would be practice of law. While if the forms were prepared by a corporate attorney or have been approved by the Supreme Court of Florida, and then licensed for sale by the accountant, it may not be. But again, my analysis should by no means be taken as legally operative in your state. I can only speak to my state, and my state says you're wrong.

Your call. PS: Not an attorney in Florida, do not take as actionable legal advice. Consult local attorney for more information on why this is a bad idea. But hey, feel free to ignore. The worst that could happen is losing your real estate license and spending one year in jail in many jurisdictions for criminal contempt charges.

Originally posted by @Matthew Kreitzer :
Originally posted by @Cameron Skinner:

@Matthew Kreitzer I would have to respectfully disagree that creating or sharing a contract is the practice of law.  If that were the case every contract for sale, rental agreement, bill of sale, partnership agreement drawn up would be practicing law.  There are hundreds of boiler plate versions of these contracts that can be shared and are even sold online and even in Office Depot, this is not practicing law. Now if I draw up a contract for a transaction I'm not involved in and answer legal questions about the contact for @Khamal Davis and charge him a fee, then that would be practicing law without a license.  Just my thoughts on the subject. Good Luck!

 Disagree all you want, but my state at least says any services rendered to another person that denotes knowledge of the law constitutes practice of law, and the preparation of forms or provision of forms in contemplation that they be used specifically equate to the practice of law. I would highly recommend consulting with an attorney before sharing your forms with another person. As an attorney licensed to practice before my state and the federal courts, I say you run extreme risks trading contracts. 

A similar definition appears to be in use in Florida:

" if the giving of [the] advice and performance of [the] services affect important rights of a person under the law, and if the reasonable protection of the rights and property of those advised and served requires that the persons giving such advice possess legal skill and a knowledge of the law greater than that possessed by the average citizen, then the giving of such advice and the performance of such services by one for another as a course of conduct constitute the practice of law." (The Florida Bar v. Sperry, 140 So. 2d 587, 591 (Fla. 1962) 373 U.S. 379 (1963))

Of particular interest in the present case would be the application of The Florida Bar v. Fuentes, 190 So. 2d 748 (Fla. 1966) and The Florida Bar v. Town, 174 So. 2d 395 (Fla. 1965). I would argue that, in this case, if these forms were prepared by a non-lawyer and then sold to or given to another individual, that would be practice of law. While if the forms were prepared by a corporate attorney or have been approved by the Supreme Court of Florida, and then licensed for sale by the accountant, it may not be. But again, my analysis should by no means be taken as legally operative in your state. I can only speak to my state, and my state says you're wrong.

Your call. PS: Not an attorney in Florida, do not take as actionable legal advice. Consult local attorney for more information on why this is a bad idea. But hey, feel free to ignore. The worst that could happen is losing your real estate license and spending one year in jail in many jurisdictions for criminal contempt charges.

This is a good discussion and thanks for case law and backing up your opinion.  I would argue both the cases you cited the defendant prepared documents for a third party and charged a fee.  And the Florida statue refers to providing "services" which in a legal definition denotes providing a service for compensation.  This post was someone requesting an example of a contract and another saying he would share it free of charge.  Again if it were illegal for a non-lawyer to prepare his own contacts then 99% of all contracts would be illegal.    Think how many people sell used cars with a bill of sale, addendum's to real-estate contracts, option contacts, rental agreements ect.  People are allowed to represent themselves in business transactions and even some court actions and pleadings like evictions without legal representation.  Further people can share documents and even give advice, they just can't charge for it.  A government statute telling someone they can't freely voice an opinion even about legal issues would interfere with constitutional protections.  But I completely agree if a non-attorney provides a legal document or advice for compensation then they are practicing law without a license, but again this post was a free exchange of ideas, not about a fee for legal services.  Hope this helps, Good Luck

@Cameron Skinner I hate to be the nay sayer on this one seeing as it is an attorney on the other side.  And of course you know when an attorney is lying right?  When his lips are moving!!!  @Matthew Kreitzer don't sue me!!!  😜

Actually, at least in FL, compensation is not the determining factor.  It is the unlicensed giving of advice or practicing of law.  

Awhile ago, I prepared a deed for my own land trust.  (Of course I am not my trustee and myself as beneficiary was not public record) i had hired an Atty to be the trustee, but through some misunderstanding within her office she was never informed and the trust was never ratified.  Long story short, I had prepared the deed, and the Atty sent me before the bar for practicing law without a license.  My regular Atty informed me that it wasn't about financial gain but the actual practice of unlicensed law for someone else.  I had to show them that I was the actual beneficiary and was doing he deed for myself.  

But I'm not bitter!!!

By the way, what's the difference between a porcupine and a Mercedes with 6 attorneys inside?

With a porcupine, the pricks are on the outside!!

(My atty loves when I tell him these jokes) 🙉🙈🙊

@David Dey thanks for chiming in, ask three attorneys and get three different opinions, sounds like it worked out for you.  Saw that you wholesale in Lakeland I've been moving further south, just picked up a few in Deltona my email is on my profile lets talk after the holiday see if you have anything in my criteria.

Great thread, thanks everyone for your insights, and thanks Matt for the legal opinion. I am trying to put together a contract, and I was nervous about using templates and random downloads, especially since I haven't found one that seems tailored for a wholesaler. So I was planning on consulting my lawyer, but was hoping that maybe this group could give me some insight and guidelines as to what contingencies and items that might be specific to a wholesale deal so that I am better prepared for the discussion with my lawyer.