Question about Purchase Contracts in North Carolina

[Nicholas Klus]

Hello! I am a new investor in North Carolina trying to get into wholesaling and house flipping and I have a question about the contracts used in North Carolina real estate transactions. Are there specific contracts to the state of North Carolina that must be used while doing real estate business in the state or will more general contracts work?  I have found examples of both and they are essentially the same, but I don't want to use improper documents and get to the closing and realize that I messed everything up.  Thanks for any info! 

[Don-Carlos Moniz]

@Nicholas Klus,

Welcome to BP.  There is a standard contract that real estate agents can use in NC, but no law dictates the use of a particular contract.  Many generic contracts are floating around the internet - while they may suffice in most cases, I would encourage having an attorney draft a simple contract.

I would also encourage you to have a discussion with an attorney about the current state of wholesaling in NC.  There has been a growing push in many states to curtail wholesaling, and NC is no different.  I have seen a trend toward double closings - be aware that in an A to B to C transaction, you will not be able to C's funds to close.  Transactional lenders can provide funds for the A to B closing if you don't have the funds yourself.

I don't know any specific contract considerations for a flip.  There are market, holding, and lending considerations - but, in function, these are not unique to NC.

I interact with a lot of folks in the investing space, so I keep up with trends, but not all of the details.  An hour or two of your time and some attorney fees will more than pay for themselves.  North Carolina is an attorney state, so building a relationship with a closing attorney is time and money well spent.

If you have any questions, don't hesitate to ask.  There are a lot of knowledgeable folks on the forums.

Don