Wholesaler Not Communicating With Seller

[Eric Geyer]

Hi Bigger Pockets world! A few months ago, my business partner and I entered into a contract with a wholesaler to sell our 10 unit multi family property. We agreed on a figure that we both felt was fair and signed the contract. From what we read and the wholesaler stated to us, the sale was to be closed within 90 days. After he came by a few times and showed some potential buyers the property, we have yet to here anything from him in the status of the sale. We have emailed the wholesaler at multiple times, as well as called, texted and even stopped by his office multiple times over several weeks and have not heard anything back. We want to do what we can to close on this property, as we agreed upon, but can not get any response back. What are some of our options going forward? Can we back out of the contract due to a lack of communication? This has been very frustrating for my business partner and myself and would greatly like any outside input on this matter. We are all ears! Thanks in advance!

[Wayne Brooks]

The obvious answer is.....he can't find a buyer to flip your property to at the agreed price, and make his profit.  It sounds like you let him tie it up for the full 90 days, instead of having a 2-3 week inspection period, after which he would lose his likely minimal EM deposit. Sounds like you are hung for a while.  No, you can't cancel a contract for "lack of communication".  This is why you have reasonable inspection periods after which a substantial EM, 5-10%, would be forfeited if they don't perform.