If you`re looking to get into real estate wholesaling, understanding what a wholesale contract looks like is essential. A wholesale contract is a legal agreement between a wholesaler and a seller, outlining the terms of the sale. It`s important to have a clear understanding of what should be included in this agreement to protect yourself and your investment.

The following are the key components of a real estate wholesale contract:

1. Purchase Price

The purchase price is the most important aspect of the agreement. It`s the amount that the wholesaler is willing to pay for the property. The purchase price should be clearly stated in the contract and should be agreed upon by both parties.

2. Closing Date

The closing date is the date by which the sale must be completed. The contract should specify the exact date and time for the closing. This is important because delays in the closing can cause a host of problems, including the loss of a potential buyer.

3. Payment Terms

The payment terms are the conditions under which the wholesaler will pay the seller. The contract should clearly outline the payment terms, including how much will be paid upfront, how much will be paid at closing, and any other payment arrangements that have been agreed upon.

4. Inspection Period

The inspection period is the time during which the wholesaler can inspect the property and decide whether or not to proceed with the sale. The contract should specify the length of the inspection period and any other conditions related to the inspection.

5. Contingencies

Contingencies are conditions that must be met in order for the sale to proceed. The contract should include any contingencies that have been agreed upon by both parties, such as the sale being contingent on the wholesaler securing financing.

6. Termination Clause

The termination clause outlines the circumstances under which the contract can be terminated. This is an important provision because it gives both parties an out if things don`t go as planned. The termination clause should be fair and reasonable for both parties.

7. Addendums

Addendums are additional documents that are attached to the contract. They can include details such as the condition of the property, any repairs that need to be made, and any other information that is relevant to the sale.

In conclusion, a real estate wholesale contract is a legal agreement between a wholesaler and a seller. It`s essential to understand what a wholesale contract looks like to protect yourself and your investment. Keep these key components in mind when drafting your contract, and be sure to consult with a real estate attorney if you have any questions or concerns.