Wholesale contract. What do I need to cover my butt.

4 Replies

Hi all, One of my leads just accepted my offer and I need a purchase and sale agreement. My Lawyer is going to draft one for me and has asked what points I want to include. The following are things I think I need but would sure like some input if I'm missing anything:

Subject to funding partner approval (my out clause)

Clear title

inspection prior to closing of property by buyer or buyers agent

Access to property prior to closing to assess repairs and obtain professional advice on resale.

Ability to assign contract (I've been told if you don't put anything in the contract about NOT assigning then assignment is allowed)

Am I missing anything? Thanks so much!

When I first got started I contacted a local realtor and asked for their Purchase and sale agreement. Within the purchase and sale agreement you will have everything you need from a valid contract stand point.

***You do not have to be a licensed agent to use the Board of Realtors contract***

In all sections that do not apply simply put XXXX or N/A

If you are not comfortable with using the Board of Realtors P & S you can always have your attorney use it as a template.

- Actually everything you stated is an "Out Clause" except for assign ability. The only thing deemed necessary for a "Out Clause" is an If-Than statement. You must clearly state the parties duty and the preceding action there after. As far as an "Out Clause" the most important part is you inspection/ due diligence period, within this time frame you may back out for any reason, out side of the stated period you are now liable for damages I.E earnest money (do not get confused with down payment or option consideration).

I could go on for hours about what you need and don't need and once your finish trying to find this out, you'll be a contracts expert which is not your line of work. Focus on what you do best and that's doing deals. keep your contracts simple and to the point with full disclosure and leave the rest to your attorney.

1. Go to your local REIA meeting stand up in the middle of the room and ask for a P & S.

OR ask a few Investor Friendly Agents.

2. Ask if any one could recommend a closing attorney/ title company that has CLOSED an assignment and/or double close transaction.

3. Meet with that attorney, tell them your intentions and have them review your contract.

@Delon Hall Thanks so much for your advice. I did find an attorney and he's writing up a contract for me. This sale is a bit complicated because there are 4 sisters that inherited the property and one of them does not live close. How do I get all signatures? This may be painfully obvious but I just don't know. Can I fax or email the contract and have her sign with a notary?

1. Make sure to find out if the court appointed a exucutor. If so, it is only necessary to have the exucutor's signature.

2. Do they own it free and clear or do they still have a loan balance. Free and clear just confirm with the closing attorney that electronic signatures will suffice. if there is still a loan balance some banks don't accept electronic signatures.

3. Have it sent over night and confirm with signature to track when they got it and request that they have it notarized.