If I have a contract to purchase a home, can I sell the home before I close because of equitable title?

Question

The contract is ratified and I have 60 days to close. I've been told that having a ratified contract gives me equitable title in the property which allows me to resell the house even though its under contract. I'm an investor looking for new ways to flip real estate.

Answer 1

This is called "assignment of a contract", aka "wholesaling" or "flipping" and the act itself IS NOT FRAUDULENT. You are not selling a home, you are selling a contract. There have been loan fraud schemes designed around flipping of properties, but flipping a home is perfectly legal.

Couple of points:
1. If this is new construction, the builder probably has "anti-flipping" language in the sales contract, in such case you will not be able to assign the contract.

2. If you used a standard sales agreement used by real estate agents, there's probably anti-flipping language in there as well. In the state of PA (where I live), you can simply draw a line through this wording and have both parties initial and date it, and voila, it becomes allowed. Check your state for what's allowed.

3. If you drafted your own sales contract you will need to use wording after the word "Buyer" like "and/or assigns or nominees." This is the legal wording used to state that you are assigning the contract.

Go to the book store and start reading up on flipping, and join a real estate investment group. Go forth and learn.

For the record, most real estate agents have no idea about real estate investing. If you work with an agent for real estate investing, make sure they specialize in it. Most agents handle primary residences which is a completely different animal.

Answer 2

i'm a Realtor, too. And the Realtor Code of Ethics would not enable me to criticize fellow Realtors. So I won't. What i will assert, nonetheless, is that this is often particularly unwise for a common-time homebuyer to contemplate a foreclosure. the fee would or won't be solid. however the hassles you're working into are regularly occurring. and you do not choose that. As for what you may do: First, ask your self: Do i myself choose this property? THIS property? Are there different residences--non-foreclosure--available that would meet my desires? Then, in case you pick you do not choose to proceed, ask your Realtor what outcomes if any could shop on with. i'm not approved in Florida, so i'm unable to provide you advice there. however the extension is to guard the financial enterprise, the broking, not you. The extension keeps the deal going while in any different case it may die. and you may in basic terms pick that it may be greater advantageous off ineffective. no you will tension you to sign that extension. You sign it in case you pick to proceed the buying technique. i'm not sure what the technique could be for convalescing your escrow money; your Realtor can make it easier to recognize that. yet what could have befell is that the money have been located in an escrow account and could be released back to you if the different occasion fails to accomplish. If it have been me--in my opinion--i could ask my Realtor to run me a itemizing of lively residences at present on the marketplace that for the period of effective condition my desires (value, region, etc.). If I observed a team of others--in many circumstances occurring sales specifically--i could be very tempted to refuse to sign the extension. whether, i could ask my Realtor what the technique could be for determining to purchase my escrow money back. Tip: in case you don't get a sparkling, responsive, helpful answer out of your Realtor, then you definately %. up the telephone and phone the Realtor's broker service. it somewhat is like his boss. clarify the situation. wish that helps.

Answer 3

IF the contract has an assignability clause ( or no clause preventing assignment) you can assign, for a profit, the property. The purchaser of the assignment then is in your shoes and can do anything you would have done.

Answer 4

you did not put in an "assignment clause"
you can advertise it..but can not show it because the owner still owns and occupies the house, and the owner is paying all the bills, taxes, insurance, etc.

Answer 5

Until you close on the property, it's not yours.

That means it's not yours to sell, either. Sounds like fraud to me.

Answer 6

Who told you that? You could not give clear title. You can't sell something you don't own. It's called fraud where I'm from.

Answer 7

y not u must do that