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Updated over 10 years ago on . Most recent reply

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Lori Valene
  • Rental Property Investor
  • Kent, WA
27
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83
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Is there a really good "bullet proof" wholesaling contract out there?

Lori Valene
  • Rental Property Investor
  • Kent, WA
Posted

Just lost a deal because the seller changed his mind 2 days before closing. He took my contract to a lawyer and said he was going to fight this. Basically a real estate agent poached him from me, promising he would make more money going with him. This would have been my 1st deal. 

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Ned Carey
  • Investor
  • Baltimore, MD
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Ned Carey
  • Investor
  • Baltimore, MD
ModeratorReplied

The elements that make a contract a binding contract are pretty simple. My guess is your contract probably is valid. However these days people often break contracts without valid reasons. A lot of it comes down to how hard you want to fight. 

If the deal was important to me I would not hesitate to contact the agents broker and tell him what the agent did. Interference with an existing contract is a tort. (something you can sue over) The BROKER in addition to the agent is liable.  This is the kind of thing agents lose their license over.

I has this happen to me and filed a specific performance suit against the seller. The agent backed down very quickly. Ultimately I made $70K.

When this happened I looked at the sanctions against agents. Sure enough it was a common complaint and the real estate commission obviously took it very seriously.

  • Ned Carey
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