Hello Bigger Pockets,

My name is Justin and I came across BP a few months ago. Since then, I have been dedicated to gaining knowledge regarding RE investing. While I want to House Hack in the near future and eventually take on some rehab projects, I realize that Wholesaling is the most logical starting point for me. I don't want to get hung up on any details that may not be a cause for concern from a practical standpoint. However, I do want to understand the contract a bit better before I start marketing for leads. 

I have been lurking on the BP threads for the past few months, and am having a hard time understanding how to utilize the NJ Purchase & Sale agreement in a wholesaling environment.

I know this topic has been beaten to death, as I frequent all of the related threads. Unfortunately I have not been able to find a clear answer. What is the most efficient way around the No Assignment clause?  I have heard of people simply crossing it out, but I can't help but question the legality of doing do. Is this a legitimate concern?

Also, is the below link the standard contract in the state of New Jersey? Is there a shorter, more condensed version of this document that I would be able to use? 

http://www.wikiform.org/wp-content/uploads/2014/01...

Thank you,

Justin

@Justin Pencook I just want to start by saying I am NOT an attorney or legal professional, I am speaking solely from experience. Once you sign the purchase agreement, the contract goes into “attorney review.” This is when your attorney would insert the assignment clause. The seller has the option to accept. If the seller does not accept, you can do a double close, in which you would buy/sell on the same day and the money would just transfer through escrow. Another option would be to purchase the property under an LLC and then sell the LLC to your buyer. Either way, assigning contracts are a tricky business. It’s much better to actually purchase the property then sell. That way there are no questions on the legal end. Also one thing to know, even if you have a property under contract, some realtors will not be willing to open the door for your potential investors. Just keep that in mind. PM me if you have any other questions. Good luck!!!

Justin,

Are you a realtor?  That contract is specifically for realtors.  You can contact an attorney who works with investors in NJ and pay for a contract.  That usually runs about $500.  Or you can provide them with a contract, have them review it, and have them update it with the necessary disclosures, contingencies, etc.  

You can have an attorney draft the contract for you.  The requirement for attorney review only exists if you use a realtor supplied contract.  I typically draft contracts for wholesaling which include a provision expressly allowing assignment.  If you use a realtor supplied contract have an attorney on call who can insert the provision during attorney review.