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Updated almost 6 years ago on . Most recent reply presented by

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54
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Votes
Amil D.
  • Rental Property Investor
  • Indianapolis, IN
18
Votes |
54
Posts

P&S agreement: Am I signing my life away?

Amil D.
  • Rental Property Investor
  • Indianapolis, IN
Posted

How do I know if a P&S agreement is legitimate? I'm about to sign one from a wholesaler. It transfers the rights from him to me.

Is there anything missing from it that should be there for my protection?

Is there anything in it that could harm me?

Let me know if you're willing to take a look!

For example the inspection contingency just says "contingent upon inspection." That seems a little too vague. 

Most Popular Reply

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Charlie MacPherson
  • China, ME
4,027
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3,429
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Charlie MacPherson
  • China, ME
Replied

@Amil D. There's so much that can go wrong here...

How do you know that the person he says is the seller actually owns the property?
Are there others who have an ownership claim, like relatives or a former spouse?
Have you run title?  Are there any clouds?
Do you know what liens are on the property?
Does the wholesaler have a legitimate contract with the seller?  And is it assignable?
Is wholesaling even legal in your state? (don't forget that contracts formed for an illegal purpose are void!)

If you can be satisfied with all the answers, I would strongly suggest that you get a real estate attorney to represent you and that you don't pay the wholesaler a dime until closing.

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