Experienced Wholesalers

3 Replies

What contract do you  suggest I use, the trec 20-12, or a one pager? Or if you could suggest something that's been working for you, that would be great. 

Thanks, Chris K. 

@Chris Kates

We use 20-12 One to Four Family Residential sales contract, as is.  We add a clause for a "Right to Show" and use Section 23 to provide us with a 10-day (business days) inspection period.  We do not add any additional contingencies or goofy clauses.  We also list our company name as the buyer with an "Or as Assigned" statement.  Even though residential RE contracts in Texas are generally assignable, we call it out to ensure there is full disclosure.

You'll need to follow that up with an assignment contract.  That doesn't have to be anything elaborate.  It's just a basic agreement between you and the end buyer that assigns your contractual rights to them.  There are many versions in the File Place.

PS...we tried a couple of different approaches, but almost everyone who owns property in Texas is familiar with the TREC style and form.  As long and complex as it is, it seems to create a greater air of legitimacy and a level of comfort for the seller.  Plus, the length and complexity means, if you use it properly, there really shouldn't be much you need to add to it.  Section 23 is a huge win and eliminates the need for all the goofy "weasel clauses".  Give yourself 10-working days.  If you can't figure out whether to proceed by then, you don't need to be buying the house.  But, Section 23 means you can cancel for any reason or no reason at all, and the only thing you lose is the small Cancellation Option fee you paid under that section.

Thanks so Ms. Hattie, that helps me out a lot. I figured the one page contract was a little cheesy. 

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