I found a property and he accepted the offer...

[Terry Majchrzak]

So Ive found a property in Ransomville, NY. And a wholesaler I met through facebook accepted an offer on 39.5k. And everything ive seen as far as comps go are highly favorable of an 90-100k ARV. I would be obtaining the funds from an annuity and 1k EMD.

Due to an almost marital status change...i kind of need a place to go. (Mom says hi!) However its 36 minutes from me(it is indeed very rural)...which isnt so bad but its the complete opposite direction of my entire life. Which...i can manage whatever. Im a union carpenter by trade. But im no electrician plumber or hvac guy. And im literally putting all of my eggs in this basket in hopes of a place to live and cash out as well. 

There is a farm that this property is smack dab in the middle of. I thought about contacting them the day i closed to see if theyd be interested in the property for around 60k. But it has been pointed out that that has most likely been attempted. When i met the owners son it did not seem like they knew the farm owners at all but who knows. Thats a gamble all in its self. 

My question to BPfam is... (i worked really late in a place with no reception today trying to figure all this **** out)...is it alright if i say i want an inspection but they can start the title search and if that goes south i can back out? Obv i lose my earnest money deposit. But i just wanna make sure i can back out of the contract if theres somethin "i dont know what i dont know" type of thing. Like is it too late?

Oil burnin furnace (no gas lines around) and a septic system. I have no experience with these. 

Cheers, guys. Thanks!

Terry

[Charlie MacPherson]

@Terry Majchrzak You're in WAY over your head here.  You need professional representation, either from a real estate attorney or a Realtor.

First of all, if this is a standard wholesale deal (contract assignment), you need to have your attorney look over the contract between the seller and wholesaler.  There are a lot of terms and conditions that you can and should negotiate - deposit amounts, contingencies (inspections, financing, closing date, type of deed, etc).

The wholesaler will push back because they don't want you to see how much they're making.  Demand to see the contract anyway.  If you're going to be a party to that contract, you have every right to see it before making a commitment. 

You need a title search as well.  At this point, you don't know if there's a clear title or if the seller has $500,000 in IRS, tax or mechanics liens against the property.  You don't even know if the person claiming to be the seller  is the actual owner.

BTW, I have not looked in to NY real estate laws, but if it's like almost every other state, an unlicensed wholesaler is illegally performing unlicensed real estate brokering.  That means that the contract with the seller was formed for an illegal purpose and is automatically void (not simply voidable) at its inception.

A final note. It sounds like you're somewhat desperate to find a place.  Just be aware that that kind of stress will cloud your judgment.  That's another reason having professional representation is important.  A non-involved party (Realtor or real estate attorney) who is your fiduciary should be able to strip the emotion away and keep you from jumping into a bad deal.

Good luck!