Originally posted by @Sabrina Brown:
I have been to a few wholesale classes and was taught a few "tricks". Many of these people trying to get into wholesaling are bird dogs. If the inspection period says 7 days and it expired, you are off the hook, no matter what. I don't know what his contract states but usually it is written in very simple language. If A is not fulfilled by X date, then B happens (i.e. end of contract). Wholesalers will go through their buyers list and still look for other avenues to sell your house quickly. I think at this point it doesn't matter if they are licensed or professional. They can assign the deal to someone else if the contract states that. Common practice. I am not licensed, as I don't have to as an investor (and as it doesn't limit me quite as much if I was licensed), but it appears to me that this is a contract and whatever the contract says stands. If anything is out of line, it can be a breach or the contract will end at which time either party can walk away. Should anything go beyond these terms, they can be amended and must be signed by both parties.
Some escrow companies and realtors will take a look at it for free and tell you if it is legitimate (if you want to save money or just get an opinion from an independent party). Some real estate attorneys offer free consultations with specifics relating to the deal, not just theoretical scenarios.
On another note, what scares me is that you let all these people into your house snooping around. I would ask them for ID and have appointments with these people set up in advance. Too many things have already happened with female realtors letting prospects into houses or property being stolen while being inspected. Some are thieves and pretend to be professionals and we are trusting to let them in only to find out later we have been robbed (this has happened with a neighbor in a prime area in LA where I used to live!).
At this point you haven't lost anything (thank goodness!), just be very cautious and follow the contract to a T so nobody can come back later to say otherwise. Put it in writing that the contract is "null and void as of x date". You already have all your notes, which is great!
Thank you for keeping us in the loop!
It was a bad situation all around, but I made sure my safety was of utmost priority. I also have children in the house. No appointments were set without my husband in the house, and most often, my husband and several other men in the house (we are trying to move so we have been packing and had help packing from friends and family.) All had to identify themselves and be the person that I was told would be coming. One however did show up that I was not expecting, and I promptly called the person I was dealing with to ask who this person was. Apparently, he had forgot to tell me. I really think it was more that there was confusion as to who his fake property inspector was supposed to be.
He verbalized to me that he cannot close, and that the numbers don't work for him to retail the property (though this is what we discussed originally, and there was never any mention that he was doing anything other than that, and he has never actually been to the property to decide and figure out repair costs). Supposedly he does have an offer from someone else, but way below our contract price, and coincidentally, his original offer amount on the property sight unseen. I take note that all of our other conversations have been through text and email, beyond the initial phone call, but this one he chose to verbalize. I told him I would discuss it with my husband. I have since emailed him that since he verbalized that he cannot close at the contracted price, we are requesting he send a written and signed termination of our contract.
I really wouldn't have a problem with his action if he was up front and did not lie throughout the entire process.
