Lawsuit Risks for Wholesalers

[Dan Meier]

This question is based on the assumption that the great majority of real estate wholesalers (and other investors) are honest and well meaning, and therefore set up their deals to create win-win-win situations for sellers, end buyers and themselves. Even so, what are the top reasons wholesalers get sued by sellers, end buyers, or by lawyers representing sellers or end buyers? For example, can subtle technical errors in a contract, addendum, or assignment of contract result in a lawsuit against the wholesaler? If a wholesaler can not find a buyer, and thus opts out of a contract, will a liquidated damages clause truly protect the wholesaler from a seller? What steps should a wholesaler take to ensure a fair deal for all, and thus minimize lawsuits? Does BiggerPockets, or other general real estate sites, provide lists of expert real estate attorneys from across the country that one could arrange professional consultation with? Thanks, Dan.