Wholesale Real Estate Purchase Agreement for the United States

Wholesale Real Estate Purchase Agreement Template for United States

A legally binding agreement used in the United States for wholesale real estate transactions, where a buyer (wholesaler) contracts to purchase property with the intention of assigning the contract to an end buyer for a fee. The agreement includes provisions for assignment rights, due diligence periods, and specific state-compliant disclosures. It serves as both a purchase agreement and a vehicle for assignment, incorporating federal and state-specific real estate regulations.

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What is a Wholesale Real Estate Purchase Agreement?

The Wholesale Real Estate Purchase Agreement is essential in scenarios where investors seek to facilitate property transactions without taking title to the property. This document is commonly used in the United States real estate market when a wholesaler identifies distressed or undervalued properties and connects them with potential end buyers. The agreement must comply with both federal regulations and state-specific real estate laws, including disclosure requirements and assignment provisions. It typically includes detailed terms for property inspection, due diligence periods, earnest money requirements, and specific assignment rights.

What sections should be included in a Wholesale Real Estate Purchase Agreement?

1. Parties: Identification of seller, wholesaler, and assignment rights holder

2. Background: Context of the transaction and wholesaling arrangement

3. Definitions: Key terms including assignment, earnest money, closing date, and other relevant definitions

4. Purchase Price and Payment Terms: Details of the purchase price, payment schedule, and earnest money requirements

5. Assignment Rights and Conditions: Detailed terms and conditions for assignment of contract, including assignment fee provisions

6. Due Diligence Period: Timeline and terms for property inspection, document review, and due diligence activities

7. Representations and Warranties: Statements of fact and guarantees from both parties regarding the property and transaction

8. Closing and Settlement: Timeline, requirements, and procedures for closing the transaction

9. Default and Remedies: Consequences and remedies in case of default by either party

10. Governing Law: Applicable state law and jurisdiction governing the agreement

What sections are optional to include in a Wholesale Real Estate Purchase Agreement?

1. Financing Contingency: Terms and conditions if buyer requires financing to complete the purchase

2. Property Maintenance: Terms regarding maintenance and condition of property during contract period

3. Multiple Assignment Rights: Provisions for allowing multiple assignments or chain of assignments

4. Environmental Conditions: Special provisions regarding environmental inspections and remediation requirements

5. Tenant Rights: Provisions dealing with existing tenants or lease agreements

What schedules should be included in a Wholesale Real Estate Purchase Agreement?

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

2. Schedule B - Due Diligence Checklist: Comprehensive list of required inspections and verifications

3. Schedule C - Disclosure Forms: Required state and federal property disclosure forms

4. Schedule D - Assignment Form: Standard template for executing contract assignment

5. Schedule E - Title Requirements: Specific requirements for acceptable title condition

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 | Serial Founder & Legal AI Author

Jurisdiction

United States

Publisher

Genie AI

Cost

Free to use
Industries

Interstate Land Sales Full Disclosure Act: Federal law requiring full disclosure of information to the purchaser in land sales transactions, protecting buyers from fraudulent practices.

Truth in Lending Act (TILA): Federal regulation requiring disclosure of credit terms and standardizing the manner in which costs associated with borrowing are calculated and disclosed.

Real Estate Settlement Procedures Act (RESPA): Federal law requiring disclosure of real estate settlement processes and prohibiting kickbacks and referral fees in real estate transactions.

Fair Housing Act: Federal law prohibiting discrimination in real estate transactions based on race, color, religion, sex, national origin, disability, or familial status.

Americans with Disabilities Act: Federal law ensuring accessibility requirements and prohibiting discrimination against individuals with disabilities in real estate transactions.

State Real Estate Commission Regulations: State-specific rules governing real estate transactions, licensing requirements, and professional conduct in real estate dealings.

State Property Laws: State-specific laws governing property rights, transfers, and obligations related to real estate ownership and transactions.

State Contract Laws: State-specific regulations governing the formation, execution, and enforcement of contracts, including real estate contracts.

State Disclosure Requirements: State-mandated disclosures about property condition, known defects, and other material facts that must be provided to buyers.

State Licensing Requirements: State-specific requirements for licensing of real estate wholesalers and other professionals involved in real estate transactions.

Assignment Clause Legality: State-specific regulations governing the legality and requirements of assignment clauses in real estate contracts.

Wholesaler Disclosure Requirements: Legal requirements for disclosing the wholesaler's role and intent to assign the contract to another buyer.

Equitable Interest: Legal concept determining rights and interests in the property during the contract period before closing.

Marketing Restrictions: Legal limitations on how wholesale properties can be marketed and advertised to potential end buyers.

Securities Laws: Federal and state regulations that may apply when multiple investors are involved in wholesale real estate transactions.

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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