Locking up Properties and Protecting Yourself

[Nancy Cimino]

A business associate of mine, who is a real estate broker told me to be very careful about what I have stated in my Purchase Agreement. He asked me to find out what happens if I lock up the property with a Purchase Agreement for 30 days, and are unable to find a buyer during that time, but the homeowner or seller's agent does find a buyer. How would I proceed? Are they still obligated to keep me in this deal, since I am acting as a wholesaler not the end-buyer?

One person told me not to put in a first right of refusal, another said I should, and still another said you may get yourself in trouble if you have more than 30 days to find a buyer and can't find a buyer and the property goes into foreclosure. They said these days anyone can get sued for anything, and a judge may think that I have taken advantage of them and given them false hope.

Can someone help me with this scenario, and also share with me what and how I should state contingencies in my Purchase Agreement that will protect me as much as possible? I am going tomorrow to meet with my Real Estate Investment Attorney for the first time, and I want to make sure he understands my concerns when we write up a Standard Purchase Agreement for me to use with all my deals in VA, MD, and DC.

Thank you for your help.

Nancy