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Updated over 5 years ago on . Most recent reply

Account Closed
5
Votes |
46
Posts

legailty of assignments

Account Closed
Posted

So I want to start wholesaling houses but I don't have money to be buying a house and I learned that I can use contract assignments to make money without having to buy a house but in some states its illegal and some its legal. So I read on a article on biggerpockets that I should seek a real estate attorney and ask them if its legal in my state.  another bigger pockets member said that I should contact Alabama State Bar. I'm just looking for advice on what I should do

Most Popular Reply

Account Closed
  • Specialist
  • Paradise Valley, AZ
2,935
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Account Closed
  • Specialist
  • Paradise Valley, AZ
Replied
Originally posted by @Account Closed:

So I want to start wholesaling houses but I don't have money to be buying a house and I learned that I can use contract assignments to make money without having to buy a house but in some states its illegal and some its legal. So I read on a article on biggerpockets that I should seek a real estate attorney and ask them if its legal in my state.  another bigger pockets member said that I should contact Alabama State Bar. I'm just looking for advice on what I should do

 Assigning contracts is legal in all 50 states.

Where people get into trouble is when they try selling a house (wholesaling) they don't have a contract on and advertise the house instead of advertising the assignment. There is a difference. You can't sell what you don't own. 

Another problem area is when people don't tell the homeowner that they personally are not buying the house and mislead the homeowner.

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