Wholesale Real Estate Agreement
Jim Clark Co
Free Template
Wholesale Real Estate Contract Template
Updated September 2, 2025
A wholesale real estate agreement is a contract where a wholesaler secures the right to purchase a property at a discounted price. They then can assign that right to an investor or end buyer for a higher amount, while outlining terms like inspection, earnest money, closing details, and contingencies to protect all parties.
Overview of a Wholesale Real Estate Agreement
Unlike typical real estate transactions where the buyer purchases property from a single seller, a wholesale real estate agreement is drafted and signed with multiple parties, often including a wholesaler, seller, and an end buyer. Regardless of which party you’re representing, you will want to be sure the contract serves everyone’s best interests fairly. Due to its unique nature with lots of moving parts, this agreement needs to be very clear. So, what exactly is a wholesale real estate agreement?
A wholesaler enters into a purchase agreement with the seller (often below market value). Instead of closing on the property, the wholesaler finds an end buyer (like a flipper, landlord, or investor). Then, the wholesaler either assigns the purchase contract to the end buyer (for a fee) or conducts a double closing (buying and reselling quickly, sometimes the same day). At the end of the deal, the wholesaler’s profit comes from the difference between the purchase price and resale price (or the assignment fee).
Who Needs a Wholesale Real Estate Contract?
There are three key parties involved in a wholesale real estate agreement contract:
- The wholesaler: A real estate wholesaler who generally finds undervalued or unmarketable properties. They negotiate a purchase contract with the seller, but instead of buying it themselves, they transfer the sale to another buyer.
- The seller: This is the property owner, ready to sell at a fair price to the wholesaler.
- The end buyer: This is usually an investor who sees the property's potential, either for fixing up and reselling ("flipping") or renting it out for steady income. They essentially buy the contract from the wholesaler.
The wholesale agreement heads off any issues between these three parties, making sure everyone's on the same page.
Essential Terms in a Wholesale Real Estate Agreement
Here's some common terms found in these agreements:
- Assignment clause: Allows the wholesaler to pass the contract off to another buyer.
- Inspection period: Gives the end buyer a window of time to assess the condition of the place, ensuring it's a good fit for their investment goals before they commit to the purchase.
- Earnest money details: The earnest money clause outlines the good faith deposit put down by the buyer. Generally, it gets refunded if the deal falls through for certain reasons outlined in the contract, but it ensures the seller is able to recoup some costs if the buyer backs out without reason.
- Closing terms: Lays out the exact date and location for the official handover of the property, along with responsibilities and who is paying what portions of the closing costs.
- Contingencies: Contingencies are like safety nets built into the contract, that outline conditions that need to be met (within a specific timeframe) for the deal to continue. Common examples include financing, insurance and inspections.
Wholesale Real Estate Challenges
Real estate is full of roadblocks, paperwork, and headaches, but it can also offer a large reward when done correctly. These tips will help you navigate this agreement smoothly:
- Networking: Develop a network of contacts, like agents or contractors, who can tip you off to undervalued deals, foreclosures or diamonds in the rough.
- Negotiation: Turning a profit hinges on a good deal. Research market value, practice your pitches, and be prepared to walk away if the numbers don't add up.
- Relevant research: Stay on top of market trends to understand what investors are looking for, and build relationships with potential buyers so you have a ready pool when a hot property hits the market.
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Agreement
This Wholesale Real Estate Agreement ("Agreement") is made and entered into on [Date], by and between:
ParticipantsTerms1. Property Description: The property being purchased is located at [Property Address], with the following legal description: [Legal Description of Property].
2. Exclusive Right to Purchase: The Seller grants the Wholesaler the exclusive right to purchase the property described above.
3. Closing Date: The closing date for the purchase of the property shall be on or before [Closing Date].
4. Purchase Price: The purchase price for the property is [Purchase Price].
5. Type of Deed: The property will be transferred by [Type of Deed, e.g., Warranty Deed, Quitclaim Deed].
6. Terms of Sale:
- Earnest Money: The Wholesaler shall deposit earnest money in the amount of [Earnest Money Amount] with [Name of Escrow Agent or Title Company] within [specify time period, e.g., 5 business days] of the effective date of this Agreement.
- Deposits: The Buyer shall deposit [Deposit Amount] with [Name of Escrow Agent or Title Company] within [specify time period, e.g., 5 business days] of the effective date of this Agreement.
- Release of Funds: The earnest money and deposit funds shall be held in escrow and released under the following conditions: [Specify conditions for release of funds, e.g., upon closing, upon mutual agreement, etc.]
7. Included and Excluded Items:
- Included in Sale: The following items are included in the sale: [List any included items, e.g., fixtures, appliances, etc.]
- Excluded from Sale: The following items are excluded from the sale: [List any excluded items, e.g., personal property, etc.]
8. Inspection Contingency: The Wholesaler and Buyer shall have the right to inspect the property within [specify time period, e.g., 10 business days] of the effective date of this Agreement. If the property is found to be unsatisfactory, the Wholesaler or Buyer may terminate this Agreement and receive a full refund of any deposits made.
9. Financing Contingency: This Agreement is contingent upon the Buyer obtaining financing for the purchase of the property. If the Buyer is unable to secure financing within [specify time period, e.g., 30 days], this Agreement may be terminated, and any deposits made shall be refunded to the Buyer.
10. Insurance Contingency: This Agreement is contingent upon the Buyer obtaining satisfactory insurance coverage for the property. If the Buyer is unable to obtain insurance within [specify time period, e.g., 30 days], this Agreement may be terminated, and any deposits made shall be refunded to the Buyer.
11. Right to Cancel: If a marketable title cannot be produced for the property, the Wholesaler and Buyer have the right to cancel this Agreement and receive a full refund of any deposits made.
12. Disclosures:
- Property Condition: The Seller discloses the following regarding the condition of the property: [List any known issues, e.g., structural problems, environmental hazards, etc.]
- Suitability: The property [is/is not] suitable for the following uses: [Specify uses]
- Financial Obligations: The property is subject to the following financial obligations: [Specify any liens, mortgages, taxes, etc.]
13. Representations:
- Seller's Ownership: The Seller represents that they have legal ownership of the property and the right to sell it.
- Buyer's Ability to Pay: The Buyer represents that they have the financial ability to complete the purchase of the property.
14. Warranties: The following warranties apply to the property being sold: [List any applicable warranties, e.g., structural warranty, appliance warranty, etc.]
15. Assumption of Risk: The Wholesaler and Buyer assume the risk of loss or damage to the property from the effective date of this Agreement until the closing date.
16. Assignment Clause: The Wholesaler has the right to assign this Agreement to an investor or another third party. The Buyer agrees to assume all obligations under this Agreement upon assignment.
17. Marketing Period: The Wholesaler has [specify time period, e.g., 60 days] from the effective date of this Agreement to find an investor to assume the purchase agreement. If the Wholesaler is unable to find an investor within this period, this Agreement shall become void.
18. Amendments: This Agreement may be amended only by a written document signed by both parties. Any changes must be discussed and agreed upon by both parties before they take effect.
19. Termination:
- By Either Party: Either party may terminate this Agreement with [specify notice period, e.g., 30 days] written notice.
- For Cause: Either party may terminate this Agreement immediately if the other party breaches any material provision of this Agreement and fails to cure such breach within [specify period, e.g., 10 days] after receiving written notice of the breach.
20. Dispute Resolution: Any disputes arising under this Agreement shall be resolved through the following procedures:
- Negotiation: The parties will first attempt to resolve the dispute through informal negotiation.
- Mediation: If the dispute cannot be resolved through negotiation, the parties agree to attempt to resolve the dispute through mediation.
- Arbitration: If the dispute is not resolved through mediation, it will be submitted to binding arbitration under the rules of the [specify arbitration association, e.g., American Arbitration Association].
- Legal Remedies: The parties agree that the arbitrator's decision will be final and binding and may be entered as a judgment in any court of competent jurisdiction.
21. Signatures: By signing below, the parties agree to the terms and conditions outlined in this Wholesale Real Estate Agreement.
This Agreement constitutes the entire agreement between the parties and supersedes all prior negotiations, representations, or agreements, whether written or oral. This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
Signatures-
Click to signJohn Doe
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Click to signJohn Doe
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Click to signJim Clark
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