Should my client buy property from a wholesaler?
QUESTION: My buyer is very interested in a property, but the property is not listed for sale by the owner. Instead, the seller is a licensed investor (or wholesaler) who has the property under contract with their LLC but does not own it yet. The investor says that they can convey title in a double-closing. Can my client make an offer on this property? If so, can we use the Offer to Purchase and Contract (Form 2-T)?
ANSWER: Your client can make an offer, but these transactions are risky and the standard forms are likely not a good fit. Buyers seeking to make offers in these scenarios should seek legal counsel prior to making an offer or using Form 2-T.
Before answering your question, it is important to note that this investor is licensed, which means they are subject to the License Law. Agents should note that the North Carolina Real Estate Commission has written about potential discipline for agents who engage with unlicensed wholesalers or investors here.
As to your buyer, it is important to note some specific risks that can come up during these sorts of transactions, including the following:
- The buyer may not have any ability to conduct Due Diligence, because the investor’s contract may not provide the right for any access.
- The ability to negotiate repairs may be very limited or unavailable altogether.
- The owner may decide to back out of the transaction, which means the seller may not be able to complete the transaction without pursuing a lawsuit.
There are other risks as well, but the major ones above demonstrate how Form 2-T is not a good fit and why you should strongly recommend your buyer seek legal counsel in writing before making an offer.
If your client does make an offer, contract terms like the amount of the Due Diligence Fee (if any) or the Purchase Price should reflect the possibility of at least the above risks. Hopefully, the property lives up to your client’s expectations, but should the transaction hit bumps along the way, making sure your buyer knows the dangers up front will be invaluable.
Release Date: 11/6/2025
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