I was in discussion with a wholesaler about a property and it dawned on me, since he doesn't yet own the property, if I were to enter escrow, is it even binding? For example, if we are under contract, could the wholesaler cancel the entire deal and I would have no recourse because he doesn't own the property to begin with?
Just wanted to get everyone's thoughts. I would imagine it all depends on what is in the contract.
1) if it’s an assignment deal, he’s selling you the purchase contract, not the property.
2) In a double close scenario, I’d assume there is language in the contract about the sale being subject to the wholesaler being able to deliver clear title.
Got it, thanks!
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