This strategy is widely used in real estate investing as it requires little upfront capital and offers quick returns.
In this guide, we’ll break down everything you need to know about a Wholesale Real Estate Agreement, including key elements, legal considerations, and best practices for success.
A Wholesale Real Estate Agreement is a contract between a property seller and a wholesaler. Instead of purchasing the property outright, the wholesaler assigns the contract to an end buyer, earning a fee for facilitating the deal.
This agreement is essential for ensuring clarity, protecting all parties, and ensuring smooth transactions.
A Wholesale Real Estate Agreement should contain these essential components:
Clearly mention the legal names of the seller, wholesaler, and (if applicable) end buyer.
Include a full legal description of the property, including the address, parcel number, and any relevant details.
Specify the agreed-upon price the wholesaler will pay to secure the property.
Indicate the amount (if any) that the wholesaler must deposit to secure the contract.
This clause allows the wholesaler to transfer the contract to an end buyer. Example wording:
“Buyer reserves the right to assign this contract to another party without further consent from the seller.”
Define a timeframe for inspecting the property and performing due diligence before finalizing the deal.
Clearly state the deadline for closing and outline any conditions that must be met.
To secure commitment, wholesalers often require the end buyer to submit a non-refundable deposit upon assignment.
Some states require wholesalers to disclose that they are assigning the contract for profit.
The agreement must be signed by the seller and wholesaler to be legally enforceable.
✅ Minimal Investment – You don’t need large capital to get started.
✅ Quick Turnaround – Deals close faster than traditional real estate transactions.
✅ No Need for Financing – The end buyer funds the deal, not you.
✅ Scalability – You can handle multiple deals simultaneously.
✅ Risk Reduction – No long-term property ownership or mortgage liabilities.
🚫 Omitting an Assignment Clause – Without this, you may not be able to transfer the contract.
🚫 Ignoring Local Regulations – Some states have specific laws about wholesaling; always check with a real estate attorney.
🚫 Not Vetting the End Buyer – Ensure your buyer is financially prepared to close.
🚫 Overpricing the Assignment Fee – Charging too high a fee may drive away potential buyers.
🚫 Lack of Transparency – Always disclose your role as a wholesaler.
If you need a ready-to-use Wholesale Real Estate Agreement template, here’s how you can use it:
Click below to access the free Wholesale Real Estate Agreement PDF.
Fill in the necessary details, including:
Ensure both the seller and wholesaler sign to make it legally valid.
Once you find a buyer, use an Assignment of Contract Agreement to transfer the deal.
Work with a title company or attorney to finalize the transaction and collect your assignment fee.
A Wholesale Real Estate Agreement is a powerful tool for investors looking to profit from real estate without owning property. By understanding how to draft, negotiate, and use this agreement properly, you can streamline your deals and maximize profits.
💡 Download your free Wholesale Real Estate Agreement PDF today and start closing deals faster!
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