Download my free real estate wholesale contract template today. This template is simple and easy to use, making it great for anyone working in the real estate industry. A wholesale agreement for real estate transactions is a legal contract that lists the terms when a wholesaler buys a property, assigns it to someone else, or works with the original seller to transfer property rights. Using your own contract helps keep things fair, protects everyone involved, and makes the details of the deal very clear.

This template is a great resource for wholesalers, investors, and real estate professionals who need reliable purchase contracts for wholesale real estate assignments or other transactions. A good wholesale contract is a must-have, so all parties, including the buyer, the seller, and anyone handling assignments, understand their roles.

Keep in mind, this template is for informational purposes only. Laws are different from state to state in the U.S., so make sure to talk to a local legal expert before using it. A solid understanding of the terms is important, and professional advice can save you from making mistakes. You can even download the free pdf version to get started right away.

Download a Free Real Estate Wholesale Contract PDF

Free PDF | Microsoft Word Document

Wholesale Real Estate contract Sample

THIS WHOLESALE REAL ESTATE CONTRACT (“Agreement”) is made and entered into as of the ___ day of _________, 20, by and between the following parties:

• Buyer (Name and Address):
  [Insert Name and Address]
• Seller (Name and Address):
  [Insert Name and Address]
• Wholesaler (Name and Address) (if applicable):
  [Insert Name and Address]

This Agreement outlines the terms and conditions under which the property described below will be purchased, sold, and/or assigned. This legal agreement is binding upon execution by all parties involved.

1. Property Details

The property subject to this Agreement (the “Property”) is described as follows:

• Legal Description (as per property deed): _______________.
• Street Address: _______________.
• Current Property Owner: _______________.

The above information shall serve as a clear identification of the property to ensure a thorough understanding of the Agreement.

2. Purchase Price

The purchase price for the Property shall be $___________ (the “Purchase Price”).

• Earnest Money Deposit:
  The Buyer agrees to deposit $___________ as Earnest Money within X business days of signing this Agreement. The Earnest Money will be held with the designated Title Company.
• Refund of Earnest Money:
  Earnest Money is refundable under the following conditions (if applicable):
  1. Buyer notifies termination as per inspection or financing contingency (see Section 8).
  2. Seller fails to meet conditions of the sale.

3. Assignment Clause

Wholesaler Rights:
The Wholesaler named above has the right to assign this Agreement to a new buyer (“Assignee”) under the following terms:

• The Wholesaler may assign this Agreement to another party by executing an Assignment Agreement.
• The Wholesaler is entitled to an Assignment Fee of $__________, to be paid at closing.

The Buyer acknowledges and agrees that the Assignment Fee may be retained by the Wholesaler upon execution of this transaction.

4. Closing Details

Closing Date: The transaction shall close on or before ____________.

Closing Costs:

• Buyer shall pay for [insert applicable responsibilities, ex.: title insurance, escrow fees].
• Seller will cover [insert applicable responsibilities, ex.: prorated taxes].

Title Company Role:
The Title Company, [Insert Title Company Name], will ensure a seamless transfer of property rights and verify a legally binding contract.

5. Property Rights

Upon execution and closing, the transfer of all property rights from the Seller to the Buyer will occur. This includes all [insert details on property rights, ex.: mineral rights, fixtures, etc.].

6. Legal Compliance

This sale agreement complies with all local laws and is a legally binding document. Parties are encouraged to consult a real estate attorney or licensed real estate agent to review this Agreement.

7. Conditions and Contingencies

This Agreement is conditioned upon the following:

• Inspection Contingency:
  Buyer reserves the right to inspect the property and cancel the agreement if damages, repairs, or unforeseen circumstances arise.
• Financing Contingency:
  Buyer’s obligation to purchase is contingent upon securing financing.
• Wholesale Process Contingency:
  Both the Buyer and Seller acknowledge that this is a wholesale real estate contract and understand its nature.

Failure to meet these conditions will result in termination, and the Earnest Money shall be refunded as specified above.

8. Disclosure of Wholesale Transaction

This is a real estate wholesale transaction as defined by Act 52. The Seller acknowledges that:

• They have the right to obtain an appraisal of the property.
• They may consult with a real estate attorney or real estate professional not affiliated with the Wholesaler.
• They have a right to cancel this Agreement within 30 days of execution or transfer of property.
• Notification of cancellation must occur via certified mail or equivalent delivery method.

9. Refund Policy

Any payments made by the Seller must be refunded within 10 business days upon cancellation of this Agreement.

10. Licensing Compliance

The Wholesaler confirms they are licensed under the Real Estate Licensing and Registration Act (RELRA), ensuring compliance with all applicable laws. Failure to maintain this compliance may result in penalties.

11. Additional Terms

• If the Wholesaler assigns the contract at a higher price, the additional profit remains with the Wholesaler unless otherwise agreed.
• If applicable, [Lease Agreement details]: _______.

12. Penalties for Non-Compliance

Contracts lacking required disclosures as noted herein may be cancelled at any time before property conveyance.

13. Signatures

By signing below, all parties agree to the terms of this real estate wholesale contract. This Agreement is legally binding upon execution.

Buyer Signature: _____________________ Date: _______________
Seller Signature: _____________________ Date: _______________
Wholesaler Signature: _____________________ Date: _______________

Disclaimer

This real estate contract template is for informational purposes only and does not constitute legal advice. Parties are advised to consult a licensed real estate attorney to review this Agreement and ensure compliance with local laws and regulations.

This contract was designed as a foundational wholesale real estate contract template. Download the real estate contract PDF format for ease of use in your transactions. With a clear outline of terms covering everything from the purchase price to assignment clauses, this document provides a solid foundation for wholesale real estate deals.

Important Terms to Know

Purchase Agreement

A purchase agreement is a contract between a buyer and seller outlining the terms of a property sale. It includes details like the purchase price, property condition, and closing date. If you’re entering into a sale agreement for a wholesale deal or a traditional sale, then this document ensures both parties are in agreement and keeps the process organized and complete.

Real Estate

Real estate refers to land and any buildings or structures attached to it. This can include residential homes, commercial spaces, and vacant lots. Knowing how to evaluate and negotiate real estate is essential in wholesale transactions, especially when closing costs or value discrepancies are involved.

Legal Description

The legal description provides the precise details of the property being sold. This may include the lot number, boundaries, and parcel number, ensuring there’s no confusion about what is being transferred. Including a clear legal description in contracts protects all parties involved.

Real Estate Contract

A real estate contract is a legally binding document used in property transactions. It outlines the rights and responsibilities of each party, making sure all terms are clear. For investors, having this document ensures the other party can’t back out without consequences, completing the deal smoothly.

Assignment Agreement

An assignment agreement is a key tool for wholesalers, allowing them to transfer their rights to purchase a property to another buyer. For example, if a wholesaler secures a property under contract but decides to assign it to an investor, the assignment agreement ensures the terms are clear for all involved and details any fees paid to the wholesaler.

Own Contract

Sometimes, wholesalers or investors prefer using their own contract to control the terms of the sale. Customizing contracts lets you include specific clauses, such as responsibility for closing costs or how disputes with the other party would be resolved. Tailoring the agreement can make the transaction feel complete and efficient.

Assignment Contracts

Assignment contracts are particularly important in the wholesaling process. They allow the wholesaler to assign their interest in the initial purchase agreement to another buyer, often for a fee. This document finalizes the wholesale transaction, aligning all parties to one complete agreement and ensuring no details are overlooked.

Each of these terms plays a crucial role in simplifying real estate deals and protecting everyone involved. Knowing them will give you a solid foundation in wholesale real estate.

Who Uses a Wholesale Real Estate Contract

People typically use a wholesale real estate contract when they are involved in wholesale real estate transactions. These contracts are vital for creating clear and legally binding agreements. Here’s who uses it and why, along with examples of how they might be applied in real life.

Wholesalers

These are individuals or companies that find properties, secure them under contract, and then assign or sell the contract to another buyer, often an investor.

Example – A first-time wholesaler might find a homeowner willing to sell a vacant property and use a wholesale agreement to ensure the deal’s terms are clearly outlined for everyone involved.

Real Estate Investors

Investors looking to purchase properties at a discount for flipping or rental purposes often work with wholesalers.

Example – A real estate investor may want to buy an abandoned or distressed property and use a wholesale real estate contract to lock in the deal before assigning it to another investor.

Property Sellers

Homeowners or property owners who want to sell their property quickly, often in as-is condition, may enter into a wholesale agreement.

Example – A homeowner facing foreclosure might need to sell their house fast and agrees to a wholesale deal that allows the property to be sold as-is to an investor.

Real Estate Professionals

Agents or brokers who assist in facilitating wholesale deals may also use these contracts.

Why Real Estate Professionals Use It

To Secure Deals

Wholesalers use these contracts to lock in a property at a specific price, giving them the right to assign the deal to another buyer.
Example: An out-of-town landlord may choose to sell a rental property in need of repairs, and a wholesaler can step in to secure the deal using the contract.

For Transparency

The contract clearly outlines the terms of the agreement, including the purchase price, assignment fee, and responsibilities of each party.

To Protect All Parties

A wholesale real estate contract ensures that the rights and obligations of the buyer, seller, and wholesaler are legally documented, reducing the risk of disputes.

To Facilitate Assignments

These contracts include assignment clauses, allowing wholesalers to transfer their rights to another buyer for a fee.
Example: A wholesaler finds a distressed property, secures it under contract, and uses an assignment clause to transfer the deal to an investor who plans to flip the property.

To Save Time and Money

Sellers often use these contracts to sell properties quickly without the need for extensive repairs or traditional listing processes.
Example: A person may decide that they do not want to sell their house through a traditional real estate agent and instead work with a wholesaler who can close quickly without costly repairs.

It’s a Specific Real Estate Contract with a Specific Purpose

Wholesale real estate contracts are essential tools for creating clear, legally binding agreements in wholesale transactions. They benefit everyone involved by ensuring transparency, clarity, and efficiency while keeping the process quick and straightforward.

Check Back for Updates

I’m going to keep making updates to this wholesale real estate contract. It seems to me every few years there are additions or subtractions needed for these types of contracts and agreement. It don’t think it matter if you’re preparing a purchase agreement, navigating a real estate purchase, or working with assignment contracts, I think it’s important to continue providing tools and insights to make your process smoother.

If you’re just getting started with wholesale deals, learning how a real estate assignment contract works can save you time and effort. For those flipping houses, we’ll continue to share strategies to help you earn more money and maximize your profits.

Don’t miss updates on how wholesalers can structure deals where another party steps in to take over. Wondering how a wholesaler receives their fees or how to make a deal feel complete? We’ll cover that too. Sign up for a free account to stay connected and get access to our newest tools and guides. Check back often to make sure you don’t miss anything.