Wholesale contracts NJ

[Johnathan Boyle]

Hey BP, As I learn more and more about this business, I realize the amount of knowledge is endless. Does anyone have a purchase to sale agreement (with the option to get out in case I can't find funding), an assignment of contract, and any other contracts I should have? Finally, does anyone recommend any real estate attorneys who specialize in wholesale contracts?

[Stephen Chatto]

Originally posted by @Hannah Canario:

Originally posted by @Stephen Chatto:

I wholesale properties in NJ.   I personally recommend that you use a state contract, and then a simple assignment agreement.   North Jersey often closes with attorneys, and south with title companies.  

What section of NJ are you in?

Hi Stephen,

I just wanted to know why the two contracts? And when you have the buyer pay the attorney's fees, do you include that in the total for your buyer without being specific that they're paying for attorney's fees? Or do you give them a breakdown? Or do they pay the attorney themselves? I'm sorry for all the questions. I'm trying to figure out precisely how each step goes down.

 They are two contracts that work in conjunction with each other really.  

The purchase and sale contract (I use the state contract) is between buyer and the seller.   This contract outlines the terms of the purchase.   How much is the earnest money, How much is the purchase price, when closing should take place, what the inspection and other contingencies are basically spells out everything regarding the purchase of the property.  

Make sure in your purchase and sale agreement you reserve the right to Assign the contract.   This is where the second contract comes into play.  The Assignment contract. The Assignment contract spells out how much the end buyer is paying you in return for you assigning your interest in the purchase and sale contract to them so that they can buy the property in your place.  The assignment contract assigns the contract from you as the buyer to the new buyer.   And they are accepting all the terms of conditions of the original purchase and sale contract between buyer (you) and seller.  

One of the terms that should be spelled out in that purchase and sale contract is who is paying what.  So the purchase and sale contract spells out who is paying closing costs, realtors, lawyers, city inspection fees, etc etc etc.   I am in Central NJ and we typically use title companies to close.   So if the seller wants a lawyer that is on them, and I spell out all of the closing costs being paid by the buyer. 

I would definitely listen to the video in the link that I posted above.   It was pretty good stuff.  And maybe talk to a lawyer, as I am not one.   I could recommend a good one if you like.   

Stephen Chatto