How can I back out of an agreement with a seller if needed?

Question

I'm working with a seller that wants to sell their vacant land. I was planning on assigning this to an end buyer that I have lined up. The problem is the price that the seller wants is quite high and comparable to on-market value. My buyer is willing to pay a few thousand over but I fear that I will be in a difficult position if they were to back out as I wouldn't have any other buyers that would be willing to purchase this contract.

The agreement that I use is attached. Wondering if there is an existing clause that would allow me to back out of the agreement if my buyer can't close or changes their mind.

My spread is only a couple thousand and I'm not sure that it's worth the risk. I would not want to put the seller in a tough position either where they may lose out on other offers.

What would the seasoned wholesalers in this community recommend?

Vacant Land Agreement

Russell Brazil · Answer

If you entered an agreement to purchase the land, and you cant find someone to assign your contract to, then you need to purchase the land. If you entered a contract to purchase without actually having the intent to purchase....then you may have committed fraud by the inducement.

Jacob W. · Answer

Thank you Russell for your response. I'm new to wholesaling and wanted to be sure what the associated risks are.

Jonathan Greene · Answer

If "the problem is the price that the seller wants is quite high and comparable to on-market value" then why are you trying to lock it up on a wholesale contract?

As everyone else said, get out of the business if you can't close yourself when you can't find a buyer on any deal.