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Updated over 7 years ago,

Account Closed
  • Investor
  • Winston-Salem, NC
7
Votes |
30
Posts

Wholesaleing title search costs. Who pays if deal falls through

Account Closed
  • Investor
  • Winston-Salem, NC
Posted

Hey everyone,

So I know wholesaleing is supposed to be low money low risk, I believe for the most part if you're doing it right to be true. So hypothetically speaking I have a deal under contract, I send contract to attorney, he then opens ecrow and starts title search. 

Then for whatever reason the deal falls through, seller backs out, underestimated rehab, etc. (I know the goal is to always close but deals do fall through sometimes) 

So who then pays for the attorney for cost of doing Title search? What is the common practice amongst everyone? 

Some people who teach wholesaleing claim if you make an offer and you can't close for whatever reason the only thing you have risked is your earnest money, but aren't you still responsible for the cost of opening escrow/title search? Or do they just eat that cost? What is common practice amongst everyone?

Thanks

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