Where can I find a solid contract?

Question

I am a real estate agent in Virginia and I am looking to wholesale deals. Can anyone point me in the right direction and possibly some guidance on how to go through this contract with a seller?

Adam Macias · Answer

Used the state approved contract in your state or pay a real estate attorney to draft one. I did both and use both depending on the deal and circumstance, parties involved etc. It's beyond worth the money of paying an attorney $250 to draft a contract.

Wale Lawal · Answer

@Billy FarleyThe wholesale contract has two main parts: the wholesale real estate assignment contract and the wholesale real estate purchase agreement. We’ll explore both in detail below.Wholesale Real Estate Assignment ContractA wholesale real estate assignment contract is the legal document that facilitates the transfer of the right to purchase a property from the wholesaler to an end buyer. Once the seller and wholesaler have entered into equitable conversion, an Assignment of Real Estate Purchase and Sale Agreement is drafted.The agreement stipulates that the new buyer will assume property ownership, which includes purchasing the home from the seller. The wholesaler will then be absolved from all responsibility.The assignment contains a copy of the original purchase and sale agreement between the seller and wholesaler. This document gives the buyer a full view of any terms, contingencies, conditions, stipulations and prices involved in the deal.The assignment also includes the wholesaler’s payment terms. When the assignment is signed, the wholesaler will usually receive a portion of their profit as a deposit. After closing, they’ll be paid the remaining balance.Wholesale Real Estate Purchase AgreementThe wholesale real estate purchase agreement has a lot of moving parts. Here’s a breakdown of the components you can expect to see:The BasicsParties involved: This refers to the new buyer and seller.Description of real estate: The address and legal description of the property must be included.Deed type: What type of deed comes with the sale of the property should be specified.Condition of premises: This section lists out the physical state of the property, including existing damage and needed repairs.Purchase price and financing: The agreed-upon price and financing terms are recorded along with where deposits will be held.Closing date: This will be the day when the real estate transaction is finalized.Contingencies, Clauses and MoreFinancing contingency: This addition allows the buyer to back out of the transaction if they’re unable to obtain the required financing. However, this won’t be an issue if you have a cash buyer.Inspection contingency: An inspection contingency allows the buyer to back out of the wholesale deal if they’re dissatisfied with the results of a home inspection.Marketable title option: If the buyer can’t obtain title insurance, the deal can be called off.Buyer and seller default clauses: This section defines what happens if either party defaults on the sales contract.Risk of loss and damage clause: This clause protects the buyer in the event of property damage while under contract.Adjustments clause: This part can include accounts for property taxes, utilities and other charges, and it varies depending on the state.Statement regarding lead-based paint: This disclosure notes whether or not the property has lead-based paint.Addenda: The document includes standard legal language at the end of the contract as well as any additions made after the initial signing.All the best!

Lydia R. · Answer

Let me clear something up in case I am misunderstanding what you are asking. Wholesale properties are put under contract with the same purchase and sale agreement you use as an agent. Unless your PSA specifically states it can only be used by licensed agents, which you can still do since you are a licensed agent. Some states actually require that licensed agents use the state promulgated sales contract instead of a 2 pager printed from Google. So on the putting a property under contract front, you are covered. Use the PSA that you already learned how to use and fill out when you got licensed. As for the assignment of contract (there is no such thing as a wholesale contract) that is not signed by your seller. Assignment of contract is the legal document that transfers your equitable interest in the PSA to your end buyer. They assume all the legal obligations and rights secured by the purchase agreement. I have an assignment of contract that I am more than happy to share with you. Its 2 pages and easy to understand and offers legal protection for you as the wholesaler. Last thing for you to consider, as a licensed agent there are certain disclosures you are supposed to provide to the seller to establish and acknowledge that seller is aware you are a licensed agent and understands that for the purposes of that transaction you are NOT working on their behalf nor do you have any fiduciary responsibility to them. Make sure you CYA as much as possible.