Wholesale Real Estate Contract — Assignment & Purchase Agreement Guide
Everything you need to understand the wholesale real estate contract process — purchase agreement structure, the 'and/or assigns' clause, assignment of contract templates, earnest money handling, and the exact steps to legally assign a deal to a cash buyer.
Purchase Agreement Basics
What every wholesale real estate contract must contain to be assignable and enforceable.
And/Or Assigns Clause
The single most important phrase in a wholesale contract — and how to use it correctly.
Assignment Fee Protection
Structure your assignment so the cash buyer can't cut you out at the closing table.
Earnest Money Rules
How much earnest money to put up, who holds it, and how to keep it refundable in case the deal falls through.
Inspection Contingency
The contingency that gives you a clean exit if you can't find a buyer.
Title Company Coordination
How to work with investor-friendly title companies that know how to close assignment deals.
What Is a Wholesale Real Estate Contract?
A wholesale real estate contract is a standard purchase agreement between you (the wholesaler / buyer) and the property seller — with one critical difference: it includes language allowing you to assign the contract to another buyer (your cash investor) before closing.
The wholesaler never actually purchases the property. Instead, you transfer your right to buy at the contracted price to a cash investor for an assignment fee. The cash investor closes on the property, the seller gets their agreed price, and you collect your assignment fee at closing — typically $5,000 to $25,000.
The wholesale contract is fundamentally a real estate purchase agreement with the right legal structure to make assignment clean and enforceable.
The 'And/Or Assigns' Clause Explained
The most important phrase in any wholesale real estate contract is the buyer name line. It should read:
"[Your Name] and/or assigns"
This single phrase gives you the legal right to assign the contract to anyone you choose without the seller's additional consent. Without it, you may need the seller's written approval to assign — which can blow up the deal or invite renegotiation.
Other contract elements that protect a wholesaler:
- Inspection contingency: 7–14 days to inspect the property and exit if needed (your safety net if you can't find a buyer)
- Reasonable earnest money: $10–$500 typical for wholesale deals — held by a title company, not the seller
- Reasonable closing window: 21–30 days to give you time to find a cash buyer
- Right to access the property: Lets you walk your cash buyer through the property
- "Time is of the essence" language: Keeps the seller from dragging out closing
How to Assign a Wholesale Real Estate Contract
Once you have a property under contract and a cash buyer ready to close, the assignment process is straightforward:
- Sign an Assignment of Contract: A separate one-page document where you (the assignor) transfer your rights and obligations under the original purchase agreement to the cash buyer (the assignee), in exchange for your assignment fee.
- Collect non-refundable earnest from the cash buyer: $1,000–$5,000 deposited with the title company makes the assignment binding and protects you if the buyer walks.
- Send everything to the title company: Original purchase agreement + assignment of contract. The title company runs title and prepares the closing.
- Close at the title company: The cash buyer closes with the seller; the title company writes you a check for your assignment fee at closing.
Always use an investor-friendly title company that has closed assignment deals before — they know exactly how to handle the paperwork and disbursement.
Frequently Asked Questions
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