What Is a Wholesale Real Estate Contract?

A wholesale contract is a standard purchase agreement with one key addition: an assignment clause. That clause lets you hand the contract to a cash buyer and collect a fee — without ever closing on the property yourself.

Two types of wholesale contracts

Every wholesale deal uses one of these two structures:

For 90% of wholesale deals, an assignment contract is the right call. Double close is a tool you pull out when the deal requires it — not your default.

What must be in a wholesale contract

A valid wholesale purchase agreement needs these elements:

• Buyer name + "and/or assigns" — This single phrase gives you the right to assign. Without it, you may not be able to transfer the contract.
• Property address and legal description
• Purchase price
• Earnest money amount and who holds it
• Closing date — typically 14–30 days
• Inspection period — your out clause if you need more time
• Clear assignment clause — explicitly allowing assignment of the contract

The assignment agreement (separate document)

Once you have a buyer, you sign a second document: the Assignment of Real Estate Purchase Agreement. This document:

• Names you (assignor) and your buyer (assignee)
• References the original purchase contract
• States your assignment fee and when it's paid
• Transfers all your rights and obligations to the buyer

The buyer is now responsible for closing with the seller. You're out of the deal after the assignment fee is paid.

Common mistakes in wholesale contracts

• No "and/or assigns" — Some wholesalers use generic real estate contracts that don't allow assignment. Your contract must explicitly permit it.
• No inspection period — This is your protection if you can't find a buyer in time. Include a 5–10 day inspection contingency at minimum.
• Too-short closing window — Give yourself at least 21 days. Rushing creates pressure and bad deals.
• No earnest money clause — Stating who holds the EMD and what happens if the deal falls through protects both parties.