Wholesaling....who's contract to use?

Question

We are looking to put in an offer through a real estate agent. Do we use their offer to purchase contract or our own? Is there any other difference in this deal?

Roland Paicely · Answer

Buying through a Realtor with the intent of wholesaling is tough.  Not impossible.  But unless you have a lot of experience, don't do it.

I'd guess that most agents will insist on you using their forms.  Although, technically you can use your own.

John Thedford · Answer

If you are purchasing that is not "wholesaling". The term "wholesaling" if often used by unlicensed brokers trying to middle-man deals for a profit. If you have NO intention of closing, but rather assigning, that is often called "wholesaling" and knowledgeable agents won't fall for that. Legitimate escape clauses for buyers may be financing or inspection. If you cannot obtain financing or it does not pass inspection that clause allows the buyer to back out. Most of the FRAUDS AND SCAMMERS try to tie up house for 30-60 days and then solicit REAL buyers. A legitimate contract would be a purchase and sale contract commonly used in your state.

Michelle Chowan · Answer

@John Thedford, What would be a legitimate escape clause? Our offer is conditional upon the following terms:

Subject to Buyer obtaining a satisfactory home inspection report

To be sold free and clear of all encumbrances, by good and marketable title

Subject to inspection and approval of contractors bids by byer

Buyer and seller to pay normal closing costs

Seller to provide buyer with access to property upon acceptance.

I have proof of funds. Just wondering if it mattered who's contract to use. I wasn't suggesting to "get one over" on anyone by using BS escape clauses.

John Thedford · Answer

If you are planning to assign and using BS escape clauses such as "subject to my partners approval" or other nonsense most agents won't fall for that game. A good agent will ask for POF.