Hi BP'ers. I have a property under contract in AL that I'm looking to wholesale to a cash buyer investor. I know in some states, my home state of NC being one of them, you're able to list a property on the MLS without owning the property. (In NC there's a box you check on the MLS that says "Seller Does not own"). Wanted to know if that's possible in AL? Any insight you can provide is much appreciated. Thanks!
Hi, I believe a contract to purchase can qualify you as an equitable owner. Your MLS might not allow it, just call a local Broker and ask. They will need to know if you plan to assign the contract, or if the Listing is subject to your closing on the purchase. Each way has independent considerations that come into play.
The fact that the sale is subject to the closing of your purchase contract needs to be disclosed in the MLS to fellow Brokers under confidential remarks. People used to try this on short sales. If this happens to be a short sale contract to purchase, you could be subject to deed restrictions that would disable you to flip for profit. Additionally, assigns would not be approved(generally).
In your situation, if this sale involves the Seller (they see it advertised for whatever price, or if they live at the home and you have to arrange showings), you could be putting yourself in the awkward position of he/she wanting to back out of the contract with you if they know others will pay more for it.
Whether this is an attractive listing to a Broker will depend on the situation and they will want to review your executed contract to purchase as proof of your equitable interest.
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