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Mike Flanigan
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New to Working with Wholesalers, Question on Contract Terms

Mike Flanigan
Posted

Hello all,

Title describes it, I'm trying to find wholesale deals in North Carolina.  I found what I thought was a deal.  The contract was pretty sloppy, but 2 items in the contract really surprised me.  They requested indemnification and they refused to be held liable if the title search failed to find something.  That ended the deal for me.  

I've found what I think is another good deal that I'm about to pursue.  Should I expect to see these in the next contract?  Are those common terms found in wholesale contracts?

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Andrew Caranto
  • Investor
  • Pacific Northwest
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Andrew Caranto
  • Investor
  • Pacific Northwest
Replied

Indemnification is common because they're assigning a contract, not warranting the house. The clause that should kill a deal is the one that leaves you stuck when title comes back dirty.

Your own title search and a walk right if it fails are the file. Their we-aren't-liable line is them telling you that up front.

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