Can you add a buyer to the contract after it is signed?

Question

Can you add another buyer to a sales contract after it has been signed by the seller and the buyer? Then after you close on the property, release yourself from the contract for a wholesale fee.

My reason for asking is trying to figure out how to close a wholesale deal when you aren't able to assign the contract, don't want to using transnational lending or a double close.

Keith Washington · Answer

This conversation looks to be 4 years old so I'm very late to the party.

But hopefully my response will help the next wholesaler.

I have been able to "add a buyer" to a purchase agreement and at closing I sign a quit claim deed; releasing my interest in the property.

A contract was established with myself and my buyer for them to pay me X amount of dollars as my wholesale fee.

My buyer went on to profit 100K from the deal and I picked up a nice check as well.

Happy Wholesaling!

Daniel Paloscio · Answer

You cannot change anything on an un-assignable contract without both seller and buyer signatures. There are 2 options I know of that may help you accomplish this:

1. You can execute the contract into an LLC, then sell the whole LLC to your end buyer. This way the original name stays on the contract, but the signor for the LLC would change to your end buyer. You can collect a fee for selling the LLC.

2. You can also novate the deal. Look into novations.

Good luck!

Lydia R. · Answer

Technically yes. You could put the buyers name in the contract instead of your own, but you have no protection in the deal. The contract will be directly between the buyer and the seller. You have essentially done all the work and failed to secure a way for you to get paid. The entire premise of wholesaling involves securing the deal and then transfering that equitable ownership (assignment) or actual ownership (double close) to an end buyer. The only other option is to buy the house yourself and then put it on the market and sell to whomever submits the highest offer. There is no way around this process.

Steven Ruddell · Answer

I'm avoid those ways to close to minimize closing costs. I know using a double closing or transnational lender you will be the closing cost twice.

To clarify, I would release myself after the closing date.

I'm imaging that it goes down like this:

• I put a property under contract.
• I add a partner to the contract so we are both on the contract.
• After we buy the house, he signs me off the title/deed (not sure I I know the difference)

Am I way off base? Trying to avoid closing cost to allow more profit for the end buyer and myself.

Justin Fernandez · Answer

Land trusts. Ask your lawyer how to properly do it.

But why are you avoiding those ways?

Zana Blue · Answer

As I understand it NO unless the buyer and seller agree and initial the changes on the original contract and exactly how will you release yourself from a legally binding contract ?

Can you add a buyer to the contract after it is signed?

Can you add a buyer to the contract after it is signed?

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