Wholesaling legal troubles

2 Replies

Whenever you find someone you decide to sign a contract with and you tell them you want to buy the property cash BUT the contract says have expired and couldn’t find a buyer. How would you proceed in this situation? Would you get sued for promising a cash offer but didn’t complete it?...
Originally posted by @Nicholas Borda :
Whenever you find someone you decide to sign a contract with and you tell them you want to buy the property cash BUT the contract says have expired and couldn’t find a buyer. How would you proceed in this situation? Would you get sued for promising a cash offer but didn’t complete it?...

 If you sign a contract and violate the terms of the contract you can be sued.

@Nicholas Borda this is the #1 gripe about wholesalers. They sign a contract with the seller telling them they are the end cash buyer. The truth is they aren't and have to advertise and try to sell the house (contract). If they can't sell the contract, they have no way to close. The seller spent this whole time assuming the "cash buyer" is simply doing his due diligence and their headache house will be sold soon. The wholesaler then has to come back after some time (weeks or even months) and use some made up excuse why they couldn't close (partner approval, etc).

The 100% best way to avoid this, is to be honest and up front. Don't pretend to be the cash buyer if you aren't the cash buyer. Don't sign a contract you don't plan to or have any ability to execute on.