what wholesale clauses do you use

Question

I need a wholesale clause that will allow me to back out should I not be able to find a buyer. Thank you.

Dean Letfus · Answer

I use "subject to buyers inspection" or "subject to buyers property managers inspection"

Jerry Puckett · Answer

If you require partners approval some would argue you do not have the legal authority to execute a contract. That one could come back to haunt you.

Jerry Puckett · Answer

Paragraph 23 of the standard TREC contract that we use in TX allows you to set up an option period that gives you unrestricted right to terminate the contract.

If you need more grace than this, you're really going to be needing to check your numbers to make sure it's a deal. There is so much cash flying around the market right now even marginal deals are selling.

But for goodness sakes, PLEASE stay away from those "weasel" clauses.

Brian Feltz · Answer

Chase Brister I actually put in an "Assignment Clause" on mine. Ill use something like a 30 day assignment period to find a buyer or decide to buy myself.  But, this only works if you are not trying to hide your wholesaling strategy.  If you are trying to hide your strategy then use either a financing clause or an inspection clause.  Me, I suggest being completely open with the seller and use the assignment clause.

Bill Gulley · Answer

Some state contracts may have an "Option to purchase" available. An option can be made for an agreed period of time, days or years, but it musy have a stated term.

I know the option gurus have all kinds of stuff for thier option agreements, but an option is pretty simple really.

An option must have the elements of a contract, and being for real estate, must be in writing. You need to state the parties to the agreement, the legal description of the subject property, the purchase price or strike price as known in other options that is to be paid for the property, the consideration paid for the right to purchase (equitqble and legal consideration, not this ten dollar stuff if you want it to hold up) being the option price and the term of the option, it must have a date the option expires. An "Option" may not be contingent on performance of the optionee (buyer) or it is not a true option, it may still be an agreement. You can search here for contract details in several threads. :)

Deborah Saddler · Answer

Bill Gulley@Bill, hi Bill what is an option clause?  Can you use any of the clauses mentioned above for 30 days or longer, or whatever is agreed upon with the seller?

Bill Gulley · Answer

If you are using a sale contract get it done during the inspection period. Trying to use the financing clause and not attempting to obtain financing can get you nailed.

Why not be up front about it and use an option and then you don't have to worry about it?  :)

Oiluj Lopez · Answer

An "inspection clause" sounds good and most sellers won't have an issue.

On another note, how many days do you guys typically ask for to "inspect" or assign the contract?

7 days? 10? 14?

Tim G. · Answer

Inspection clause, offer pending partner approval.

what wholesale clauses do you use

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