What happens if you need to cancel a contract?

What happens if you need to cancel a contract?

Member since 2022 · 33 posts · 5 votes

Hello new to wholesaling and just learning at this point. If for whatever reason I decided to cancel a contract, aside from loosing earnest money would I need to worry about anything else? Like getting sued even? 

Thanks for the help 

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  • Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 205 posts · 168 votes
    4y

    Yes.  You can be sued for specific performance in some states which means you can be compelled to complete the purchase.  This gets into legal advice and If you are considering wholesaling you need to seek advice before you sign any contracts.  

    This does happen.  My client is a seller and recently signed a contract for a cash purchase.  The next day the buyer tried to renegotiate the contract.  My client said no and the earnest money funds went to my client.  He considered suing, I convinced him to move on.

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