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Wholesaling Real Estate Contracts for the United States

Wholesaling Real Estate Contracts Template for United States

A comprehensive legal agreement governed by United States federal and state laws, designed specifically for real estate wholesaling transactions. This contract establishes the terms and conditions for the initial purchase of property with the explicit right to assign the contract to an end buyer. It includes provisions for due diligence, assignment rights, earnest money requirements, and closing conditions while ensuring compliance with state-specific real estate regulations and federal laws. The document incorporates necessary consumer protections, disclosure requirements, and assignment provisions required under applicable U.S. jurisdiction.

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What is a Wholesaling Real Estate Contracts?

Wholesaling Real Estate Contracts are specialized agreements used in the United States real estate market when an investor (wholesaler) contracts to purchase a property with the intention of assigning their rights to an end buyer for a profit. These contracts must comply with both federal and state-specific real estate laws, including disclosure requirements, assignment regulations, and consumer protection statutes. The document is essential for investors engaging in wholesale real estate transactions, providing a legally sound framework that protects all parties' interests while facilitating the assignment of contract rights. It includes crucial elements such as property details, purchase terms, assignment provisions, due diligence requirements, and closing conditions, all structured to meet jurisdiction-specific legal requirements and industry standards.

What sections should be included in a Wholesaling Real Estate Contracts?

1. Parties: Identifies all parties to the agreement, including the seller and the buyer (wholesaler), with complete legal names and addresses

2. Background: Outlines the context of the agreement, including the seller's ownership of the property and the buyer's intention to purchase with right to assign

3. Definitions: Defines key terms used throughout the agreement, including Property, Purchase Price, Earnest Money, Assignment, and End Buyer

4. Property Description: Detailed description of the property including legal description, address, and any included/excluded items

5. Purchase Price and Payment Terms: Specifies the agreed purchase price, earnest money requirements, and payment structure

6. Assignment Rights: Details the buyer's right to assign the contract, including any conditions or limitations on assignment

7. Due Diligence Period: Specifies the timeframe and terms for property inspection and due diligence activities

8. Closing and Settlement: Details the closing process, including timing, location, and required deliverables

9. Representations and Warranties: States the representations and warranties made by both parties regarding the property and transaction

10. Default and Remedies: Outlines what constitutes default and the available remedies for each party

11. Risk and Insurance: Addresses responsibility for property risk and insurance requirements during the contract period

12. Notices: Specifies how and where official notices between parties should be delivered

13. Governing Law: Establishes the jurisdiction and applicable laws governing the agreement

14. General Provisions: Contains standard contract provisions including entire agreement, amendments, and severability

What sections are optional to include in a Wholesaling Real Estate Contracts?

1. Financing Contingency: To be included when the purchase is contingent on the end buyer obtaining financing

2. Property Management: Required if the property is tenant-occupied and needs provisions for managing tenants during the contract period

3. Environmental Matters: Necessary for properties with potential environmental concerns or when special environmental investigations are required

4. Construction/Renovation Requirements: Include when the property requires specific repairs or renovations before closing

5. Multiple Party Provisions: Required when there are multiple sellers or buyers involved in the transaction

6. 1031 Exchange Provisions: Include if either party intends to structure the transaction as part of a 1031 exchange

7. Seller Financing: Include when the seller is providing financing for part of the purchase price

8. Special Conditions: For any unique requirements or conditions specific to the transaction

What schedules should be included in a Wholesaling Real Estate Contracts?

1. Schedule A - Property Description: Detailed legal description of the property and included fixtures/items

2. Schedule B - Due Diligence Documents: List of required documents to be provided by seller during due diligence

3. Schedule C - Permitted Exceptions: List of accepted title exceptions and encumbrances

4. Schedule D - Required Repairs: Itemized list of repairs or improvements required before closing

5. Appendix 1 - Assignment Agreement Form: Template for the assignment agreement to be used with end buyer

6. Appendix 2 - Property Disclosure Statement: Seller's disclosures regarding property condition and known issues

7. Appendix 3 - Proof of Funds Form: Template for documenting proof of funds from potential end buyers

8. Appendix 4 - Due Diligence Checklist: Comprehensive checklist of due diligence items to be completed

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use

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