Qs about Contracts for Seller, Buyer & Wholesaler
Fort Lauderdale, FL · Member since 2013 · 5 posts · 0 votes
Hello everyone!
I was in need of some help right before I get out there and make it happen.
I wanted to know the complete set of contracts I will need between the following;
1. Contracts between Seller & Wholesaler
2. Contracts between Wholesaler & End Buyer
3. Contracts between Seller & End Buyer
Thank you!
Aaron, one contract can be used with an assignment. Using different contracts may constitute different sales requiring you to take title, in wholesaling you don't sell the property, you sell the right to purchase under an existing contract. Back to the drawing board, read up on assignments here on BP. Good luck :)
May I suggest Legal Shield. Less than 70.00 a month for people like us. As I am a new business my attorney is extremely an asset!
@ Bill Gulley, thank you for your reply. From my understanding there should be a purchase & sale contract between wholesaler and seller and an assignment contract between wholesaler and end buyer. Is there any other contracts that I should be using or considering?
Thank you all again for your advice
Thank you all again for your advice
You have one sale contract between you and the seller. You can have another agreement with the end buyer that assigns that sale contract. You need to endorse the sale contract over to the end buyer, this is a one sentence assignment and signature, setting over your rights in the contract to another party, you don't really need mush of the guru stuff sold, just assign the contract. You do need an accounting of the transaction where you sold your interest in the contract. You can certainly have other agreements concerning the assignment, warranties, inspections etc, but the new buyer assumes many of those rights under the initial sales contract. Don't make it hard or complicated unless it really needs to be, most residential deals are pretty simple.
You also need to do what is customary in your area, you will be much better off using a contract the judge has seen before than making him read through a bunch of guru stuff. So, again, see your attorney they are not people to avoid as I have explained in some other posts today. It's pretty easy stuff, read up and ask questions on specifics. Good luck :)
Thank you very much for your help! Haha and yes I was started in real estate investing by a Guru! Haha funny that you recognized that! Thank you again, for your time and advice!
I was thinking about using this and changing some of the wording to fit my needs.
AGREEMENT FOR SALETHIS AGREEMENT is made this ___ day of _______, _____, by and between
_______________________, hereafter called Seller(s), and
______________________and/or assigns, hereafter called Buyer.
I.DESCRIPTION OF THE PREMISES. Seller(s) agrees to sell to Buyer the property located at:______________________________
Description Written As Follows: __________________________
Description is including any fixtures, window and floor coverings, built-in appliances, draperies including hardware, shades, blinds, window and door screens, awnings, outdoor plants, trees, and other permanently attached items now on premises.
II.PURCHASE PRICE. The Seller agrees to convey property to Buyer for the sum of ____________________________________ with earnest money in the amount of __________
III.TERMS. The following terms are applicable to this contract:
1)Closings costs, attorney fees, title fees and other miscellaneous costs are to be paid in the following fashion __________________________________________
__________________________________________________________________________________________________________________________________
2)Any taxes owed will be appropriately prorated between parties at closing.
3)Closing to be set as soon as possible for all parties, but no later than ____________________________without written addendum to this agreement.
4)Property sold “as is” with no warranties implied or stated from seller.
5)Earnest money to be held in escrow by buyer’s closing attorney:
_________________________________________________________________
6)Earnest money non-refundable to buyer unless title is non-conveyable or seller not available to close within time period of this contract.
7)This contract is contingent upon clear title and final inspection of the property by buyer or buyer’s agent before closing.
8)Legal consideration for this agreement is ten dollars ($10.00).
9)Seller to provide buyer with permission to access property solely for purposes such as evaluation of repairs needed, appraisal of said property for securing financing, and professional advisement on resell of property.If property is vacant, Seller shall provide Buyer with a key to access property specifically for the reasons above.
10)Any furniture, fixtures, attachments, and debris located in and around property not removed within day of closing become ownership of buyer.
11)ADDITIONAL TERMS: ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
BUYER: _____________________________________________DATE: _________
SELLER: _____________________________________________ DATE: _________
SELLER: _____________________________________________ DATE: _________