Would a wholesaler in New York need both a real estate attorney and a title company to perform transactions? If I pay a real estate attorney a one time fee to write up contracts, can I deal directly with a title company? If I pay a real estate attorney to handle a transaction, would I need to deal with a title company as well? Or would the attorney handle that and would title company expenses be included in the attorney's fee? Feedback is greatly appreciated. Thank you.
Micheal you are a real estate agent.. did they not cover this in your training or in your office.. pretty basic stuff any Realtor should know. not to be picking on you just curious. Go to your managing broker they should have this answer for you in 30 New York seconds. :)
Why would wholesaling be covered in the licensing exam or in the office? I am looking to start wholesaling and it will be totally separate from what I am doing now.
its a transaction and as such your local customs will dictate how your transactions are handled just because they are wholesale its still a real estate transaction.. so just follow what you would normally do when you sell mom and pop a house nothing more I would think needs to be done.
Unless ( check out the thread about non licensed activity) your remarketing houses you do not own.. and trying to make a middle man fee with no money out of your pocket etc.. then you have a whole nother set of rules being ethics and fiducerary that come with your license
I believe you'll need both. We have to have the attorney draw up the contract and the title company to record the transaction, best to get a title search as well to be on the safe side.
@Michael Slabitcher Welcome to BP
@Michael Slabitcher Did you ever get the information you were looking for? I came across this post as I was doing a search for the same question. I'm guessing in NY there will be both a buyer and seller attorney. I wonder if that makes wholesaling more difficult?
As a wholesaler you would only need a real estate attorney to write up or review your PURCHASE AND SALE AGREEMENT CONTRACT and your ASSIGNMENT CONTRACT to make sure the documents are legal. You do not need an attorney to wholesale a deal. As far as the title company your end buyer can use the title company of their choice. Hope this helps.
What would you do in regards to an earnest money deposit, and your contracts. Send them to your buyer, or your buyers title company?
The earnest money deposit received from my end buyer is for me to keep regardless if he/she buys the property. My end buyer would be reviewing my original contract with the seller before he signs the assignment contract (this is when the earnest money deposit is given). I hope this answers your question.
Yes I understand the deposit from the end buyer, but I thought you would give an earnest money deposit when you signed your contract with the seller. I'm guessing with your deals you don't, and you let the buyer open escrow?
Thanks for the response btw. It's appreciated.
On my purchase contract with the seller my earnest money deposit is only $10. You would account the earnest money deposit given to the seller when you decide the assignment fee you would like to charge. Once the assignment contract is signed by both parties the end buyer would contact their title company and open escrow.
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