California Wholesaling Contract Disclosures and disclaimers

California Wholesaling Contract Disclosures and disclaimers

Member since 2018 · 5 posts · 1 vote

Hey guys,

I'm new to  BP and I've been searching everywhere for some specific answers. If you guys could help me that would be extremely appreciated. I'm a Socal realtor and I am venturing into wholesaling. I am drafting up a contract, and i'm going to have it reviewed by an attorney but I was wondering if maybe someone already had one they would be willing to share. 

Now I've seen many contracts which look very basic. My concern is that it doesn't cover enough. There seem to be no exit clause where if i weren't able to find a end buyer I wouldn't be liable for any damages etc.  and so on.  

I know in regular real estate transaction we include Transfer Disclosure Statements (TDS) and Natural Hazard Disclosures and Lead paint disclosures.  Our purchase agreement is so many pages long whereas some of these contracts are barley a page. I want to be able to comfortable and confidently use these contracts without worrying about if something wasn't covered and if I could be held liable for this. Which disclosures are absolutely necessary to have in wholesaling, what can I not include. 

 
Any help is appreciated.

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Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
7y

@Hovik Pakhanyan  You're right to be skeptical of the contracts you can find online or even in the fileplace here on BP.  Most have not been vetted by anyone and there's no guarantee they'd be legal in your state or for your specific situation (or anyone's really). 

I think the best option would be to consult with an attorney and have them draft one for you that you know will cover you.  A lot of people try to avoid paying an attorney in these types of situations, maybe because they think it'll be too expensive.  However, using a free form found on the internet (or a form that doesn't have all the necessary disclosures) could lead to legal trouble that could end up being far more costly. 

Plus, I've used attorneys to create all kinds of documents for me and it's really not that expensive. Something like this really shouldn't cost more than a few hundred bucks.  It'd be money well spent.   

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  • Mustang, OK · Member since 2018 · 154 posts · 110 votes
    7y

    @Hovik Pakhanyan There is a section on this site under Education and then Files. If you click on Contracts then type "Wholesale" in the search bar, there will be a list of results related to wholesale contracts.

    I hope this helps.

  • Member since 2018 · 5 posts · 1 vote
    7y

    Thanks @Kurt Michaelson, I've seen many of these "wholesale" contracts, unfortunately I don't think they are detailed enough to protect me. Which is why i'm looking for something that is more detailed and covers all disclosures rather than just a purchase contract. 

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    7y

    Well, as an agent, You should know what disclosures, other than you being a licensed agent, are required for Any real estate transaction.

  • Member since 2018 · 5 posts · 1 vote
    7y

    @Wayne Brooks I know what the disclosures i'm supposed to disclose as an agent, but since I'm not acting as an agent and am acting as an investor at this point i'm not using CAR forms. I can manually write these myself, but the whole point was to avoid doing so. 

  • Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
    7y

    @Hovik Pakhanyan  You're right to be skeptical of the contracts you can find online or even in the fileplace here on BP.  Most have not been vetted by anyone and there's no guarantee they'd be legal in your state or for your specific situation (or anyone's really). 

    I think the best option would be to consult with an attorney and have them draft one for you that you know will cover you.  A lot of people try to avoid paying an attorney in these types of situations, maybe because they think it'll be too expensive.  However, using a free form found on the internet (or a form that doesn't have all the necessary disclosures) could lead to legal trouble that could end up being far more costly. 

    Plus, I've used attorneys to create all kinds of documents for me and it's really not that expensive. Something like this really shouldn't cost more than a few hundred bucks.  It'd be money well spent.   

  • Member since 2018 · 5 posts · 1 vote
    7y

    @Kyle J.i couldn’t agree more ! Plus no matter how expensive it is, it can’t be more expensive than a lawsuit!

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