Bloomsburg, PA · Member since 2020 · 44 posts · 11 votes
So I'm new to wholesaling and have some things that make me nervous to think about, being that I don't have the experience to know how to handle certain situations. One thing that keeps getting to me is that I heard a wholesaler say once that he had his buyer not show up to closing. What can you do in such a situation? Would the title company expect you to still close on the deal if you've signed an assignment contract and the buyer doesn't show up? Or is that completely on the buyer at that point? I don't mean they didn't show up as in they decided not to attend closing, because I don't plan on attending any closings myself, I mean they just ghosted him I guess. That's what I gathered from it at least.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
"Would the title company expect you to still close on the deal if you've signed an assignment contract and the buyer doesn't show up?"
Think if I'm the seller, standard contract is you agreed to buy at $x with the right to a blind assignment. In seller's eyes you're still the true buyer even if you're lying. I don't think there's much a seller can do to force you, but that's a pretty sh***y way to do business.
Good luck, sounds like you know what you're doing. Like the idea of downloading free contracts on the Internet as a money-saving maneuver. Again, give me your contact info and the property, love to run it past the OR REA.
So I'm new to wholesaling and have some things that make me nervous to think about, being that I don't have the experience to know how to handle certain situations. One thing that keeps getting to me is that I heard a wholesaler say once that he had his buyer not show up to closing. What can you do in such a situation? Would the title company expect you to still close on the deal if you've signed an assignment contract and the buyer doesn't show up? Or is that completely on the buyer at that point? I don't mean they didn't show up as in they decided not to attend closing, because I don't plan on attending any closings myself, I mean they just ghosted him I guess. That's what I gathered from it at least.
Let me know your thoughts.
You need to attend closing and it is your job to follow up with the buyer and seller to make sure they both show up. You can't close without the seller signing paperwork. If they ghost you, you probably need to cancel the deal and move on. Keep in mind the closing company will be doing work ahead of closing and they will expect payment if the deal falls through. Best I can say is make sure the seller is solid or don't move forward. Theoretically if you have a signed contract, you could go after them in court to force the sale, buy that means paying an attorney. You also better hope your contract is up to state legal standards before trying that.
Bloomsburg, PA · Member since 2020 · 44 posts · 11 votes
5y
@Walker Akers
well typically I use Jerry Norton's contracts, you can find those on his YouTube channel, flippingmasterytv. But in this particular situation this is an on market property so I'm using the real estate agent's contracts.
Lender · Boca Raton, FL · Member since 2014 · 1k+ posts · 957 votes
5y
@Jared Hettler, if the buyer has signed a contract, there should be provisions in there with some penalties (forfeited down-payment usually) for not completely the deal. My advice would be to speak with an attorney in your area.
Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
5y
"Would the title company expect you to still close on the deal if you've signed an assignment contract and the buyer doesn't show up?"
Think if I'm the seller, standard contract is you agreed to buy at $x with the right to a blind assignment. In seller's eyes you're still the true buyer even if you're lying. I don't think there's much a seller can do to force you, but that's a pretty sh***y way to do business.
Good luck, sounds like you know what you're doing. Like the idea of downloading free contracts on the Internet as a money-saving maneuver. Again, give me your contact info and the property, love to run it past the OR REA.
Investor · Tampa, FL · Member since 2011 · 2k+ posts · 3k+ votes
5y
The contract will dictate what recourse you have with the buyer. It will also dictate what recourse the seller has with you. Title company will be annoyed but the seller is who your purchase contract is with, this is who will be expecting you to close. And will be screwed and angry if you don't.