Canceling Assignments in a Co-Wholesale

[Drew L.]

Hey Guys,

I am a new wholesaler and I had a really quick question about assignments. I am working to co-wholesale deals with other investors and I am acting as the dispositions arm of the co-wholesale meaning I am bringing buyers while the other partner is bringing properties. Just curious what would happen if I found a buyer and converted my option to an assignment with the original buyer who brought me the property. I then would assign the contract to the buyer I found for a higher price. If for some reason after the buyer I found has put down EMD and failed to closed before the COE date, What would happen to the original buyer who brought the property? would they try to come after me legally because I cancelled the contract/assignment or because my buyer couldn't follow through and they lost the deal? This is really the only issue I am trying to prevent while going into business. I never plan to deal with this issue but am just curious what could happen.

Thanks

[Darius Ogloza]

Do you have a written contract with the co-wholesaler?  This set of circumstances should be included and there should be an express disclaimer of liability on your part.