Title companies and escrow

[Chase Guelette]

 Hey BP, how exactly does it work when I take a contract to a title company? Say I have a wholesale contract, what exactly do I do when I take the contract, seller, and end buyer to the title company? All replies greatly appreciated!

[Jeff Copeland]

There's no such thing as a "wholesale contract". 

It's just a "contract" that you signed, agreeing to pay the earnest money deposit, abide by all of the terms and conditions of the contract, and buy the property. 

Normally, you'd take the contract, along with the deposit, to the title company, and provide contact info for all parties (buyer, seller, lender, etc) so they can complete the title work, collect the money, pay off any existing liens and mortgages, prepare a settlement statement, and issue title (and title insurance) to the buyer.

Completely separate from all of this is the Assignment of Contract. This is basically a separate agreement that states "I have this property under contract as the buyer, but this other person is going to take my place and complete the sale". Your agreement with this other person might include an assignment fee, or some other consideration.

Note also that the original contract must be assignable in the first place in order for this to even be a possibility. Many contracts have language to the effect of "This contract may not be assigned to another party by the buyer" in order to protect the seller from unscrupulous wholesalers.