What should a wholesale purchase agreement include?
A wholesale purchase agreement should name the buyer and seller, identify the property, state the price and closing date, allow assignment, set an earnest money amount, give you an inspection period to find a buyer, and include the disclosures your state requires. Have a local attorney review it.
Exact requirements and wording vary by state, which is why state-specific forms matter.
Key terms
- Parties, property address and legal description.
- Purchase price and how it is paid.
- Assignment language, often “and/or assigns.”
- Earnest money amount and who holds it.
- Inspection or due-diligence period, with an exit right.
- Closing date and closing company.
- State-required disclosures and signatures.
Common mistakes
- Leaving out assignment rights.
- Using a template from another state.
- Missing a required state disclosure, or the lead paint form for an older home.
More questions
Can I use a standard realtor contract to wholesale?
Standard forms often restrict assignment or are meant for licensees. Use an agreement made for the deal, reviewed by a local attorney.
Do I need a separate assignment agreement?
Yes. The purchase agreement is with the seller; the assignment agreement is with the end buyer and sets the fee and their deposit.
What makes a wholesale contract unenforceable?
Missing essentials such as a clear property description or price, or terms that conflict with state law. An attorney review catches these before signing.