This is a Guide to writing Wholesale Real Estate Contract that benefits/protects the Wholesaler (BUYER). It is written like an attorney would write it to protect the client (YOU) from the contract loopholes. Wholesale to millions is for all levels of investors, wholesalers, and even homeowners. No license required to learn.
Wholesale Real Estate Contract
The Contract is the backbone of Wholesaling. It is the Engine of Your Car. If it is not right you can lose the deal, lose money, and end up in a lawsuit.
Discover The Wholesale Contract Loopholes
We already discussed how to fill out a wholesale contract template. Now, we are going to give a closer look at the loopholes in the contract. These are ways to get you out of the contract or to save you from losing money due to last-minute changes.
Title Commitment
This must be given to you (I usually put) 20 days after the title company receives a copy of the contract.
The Survey Clause
Within 10 days after the Effective Date of this contract, the Seller shall furnish to the Buyer and the Title Company the Seller’s existing Survey of the Property and a Residential Real Property Affidavit. Therefore, if the seller fails, the buyer may terminate this contract and the earnest money will be refunded to the buyer.
Objections
Similarly, you have 10 days after receiving the title commitment to get out of the contract based on failure with schedule A, B or C. This is another option to get your earnest money back.
Property Conditions
Under the Property Conditions clause, always select the option that says “Buyer hasn’t received the Notice” in the Seller’s Disclosure Notice section. You should receive this notice. If you don’t, however, you can terminate the contract at any time prior to the closing. Consequently, the earnest money will be refunded to the Buyer.
Acceptance Of Property Condition
Neither party has to pay for lender required repairs if the parties do not agree to pay for these repairs or treatments, or if they exceed 5% of the sales price. The buyer can terminate the contract and the earnest money will be refunded to the buyer.
Broker’s Fees
Salad paint all if any brokers fees if applicable, not the buyer
Special Provisions
Yes, this section to disclose any fact that hasn’t been declared previously throughout the contract, such as specific repair agreed, license holder information. In case you are getting an FHA loan you should state a buyer’s expenses amount that can go up to 3% of the sales price. In case you are using a hard money loan you can ignore this section.
Termination Option
This plus allows you to get yourself out of a contract for any reason and recover your earnest money within 10 days after the effective date. In case you want to do so, you must send a termination notification to the seller within the option period.
Proration
This clause states that the seller will everything prorated and up to date when by the execution day.