Filling Out My Real Estate Wholesaling Contract FULL Step By Step Tutorial
In this tutorial, Tyson Smith—who repeatedly notes he is not an attorney—guides viewers through obtaining and completing a free real‑estate purchase and escrow instruction contract he uses for wholesaling properties nationwide. He explains how to download the contract (via freewholesalingresources.com), customize it with a logo, and fill out each clause line‑by‑line. The walkthrough covers property identification (address, APN, legal description), earnest‑money conventions, purchase price entry, escrow closing details, parties (buyer/seller) identification, inspection period length, allocation of closing costs, inclusion of personal property, initials, additional terms, title‑related obligations, inspection and access rights, cancellation and earnest‑money return, lead‑based‑paint disclosure, "as‑is" purchase language, cure notices and attorney‑fee provisions, prohibition of oral modifications, notice requirements, assignability/novation, marketing rights (MLS listing), time‑is‑of‑the‑essence, choice of law, memorandum recording, electronic execution, buyer disclosures (wholesale intent), and final signature instructions. Throughout, Smith emphasizes risk mitigation for wholesalers (e.g., zero‑risk earnest‑money return, equitable interest, ability to assign contracts) and provides practical tips for finding title companies, handling liens, and extending closing dates. He also promotes additional free resources (assignment contract, a $100k‑a‑month closer script) and urges viewers to like, subscribe, and comment. The video serves as a practical, instructional guide for aspiring wholesalers to understand and confidently use the contract in real‑estate transactions.
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I am not an attorney. This is not considered legal advice by any means. You should absolutely consult with the legal professional or your attorney about going through this contract before you go ahead and use it. I've been getting a ton of DMs from you guys saying, uh, Tyson, I'm not sure how to fill out the purchase contract. I want to start wholesaling, but I don't even know how to fill out the paperwork. So in this video, I'm going to show you exactly how you can get the same exact real estate contract I use to be able to wholesale properties all across the country. And I'm also going to walk you through it line by line so you know exactly what's going on in agreement, and you'll be able to explain it to your seller when you're locking your next property up. So with that being said, all you got to do to get my contract absolutely for free is to head on over to freewholesalingresources.com. The link will be at the bottom in the description. And then check this out, I made this little website for you guys. Look, we got my Instagram feed on there. All you need to do is fill out your information here. We'll go ahead and fill mine out. I'll add myself, and then, um, Once we've done that, you need to click— all I ask is you have to subscribe to my newsletter. Right now I don't even have any emails that go out, but we eventually will. It's all going to be helpful stuff for you, tips and tricks on wholesaling real estate. Once you go ahead and do that, you press submit, and then check this out right here: click here to download. All we do is click that link, boom, free wholesaling zip. It's not just the purchase contract, we also have the assignment contract, and as a little bonus, I even threw in my $100,000 a month closer's script. So So we come in here, if you don't have a company logo, no problem, you can just go ahead and delete this part. But if you do, go ahead and throw your logo in right here. And then let's go through it. Look, this is a purchase contract and escrow instructions. Escrow instructions, meaning it's going to tell the title agency that's handling the transaction exactly what the directions are, who's responsible for what, who's paying what. This purchase contract and escrow instructions, called the contract, is going to be effective as of the latest date it is executed by the parties. That means when both parties have signed. So once I sign it and the seller has both signed it, once everybody has signed, that's when it is effective. And then this is the entire contract between the seller and buyer. So step number 1, property address. This is simple. This is the property you're buying. You're going to go ahead and enter it in right here. Next is the APN. This is the assessor's parcel number. You can get this in a variety of different places. I pull them from Batch Leads. Just go into Batch Leads, go into the property search tab, searching the address. You'll have the APN right there. You can also find on PropStream, and there's plenty of other places you can find it simply by using Google. Next, we got the legal description. So we have here, hey, that the escrow agent is going to go ahead and provide this. Now it's going to say 1.3, the property. So this is the real property described in Sections 1.1 and 1.2, so the, the sections above, and all the improvements, fixtures, and permanences thereon incidental thereto, plus the personal property described in Section 1.11. We'll get to 1.11 later, but basically we're buying all the real estate located at that address, right? Next is going to be earnest money. This is the earnest money deposit. As you can see here, it's left intentionally blank. By standard, we throw $100 on all of our contracts. But guys, get this, it's entirely negotiable. You could do $1 EMD, and guess what? When I first started out, that's exactly what I was doing. All of our contracts were $10 earnest money deposit because I needed every single cent to be allocated towards marketing. So you go ahead, you enter in the earnest money amount. You need to do at least $1 in most states. Some states you can get away with doing $0, but I would just always do one. And when somebody asks, hey, why you only have $1 EMD? We're just super upfront. We're like, hey, look, we're buying a lot of houses every single month. If we were to put down, you know, $1,000, $10,000 EMD, it would affect the price we'd be able to pay you for your property. Now you want to get the most amount of money for your property, don't you? Yes, I do, Tyson. Well, look, that's why we're going to go ahead and only put a $1 EMD down. No worries, it does not affect the purchase price we're paying you for the property, and that's what matters, right? And they're going to say, yeah, I get that, that makes sense. Next, most important part of the whole agreement. This is the purchase price. This is the amount you have agreed upon with the seller. Enter it in here. Easy. Next is close of escrow. So the close of escrow, as you guys should know, this is when the property— this is when the transaction actually closes. This is when the property goes from the seller's hands to the buyer's hands. This is when you get paid your assignment fee, and this is when the buyer gives the money to the seller. Um, so after that, here's where you put the escrow agent. This is where you put the title company. Now, all of these fields are not required. I just put in on the escrow officer or the name of the title company most of the time. Uh, you absolutely can't fill it all out. Um, if you need help finding a title company, I'll give you a really simple explanation of how to do it right now. Whatever city you're looking for a deal in, let's say that it is Covington, Kentucky. I would go ahead and I'd look up on Google title companies in Covington, Kentucky. And then you're gonna get a list of them. I'd call them. First one, hey, my name is Tyson, I'm a wholesaler. Are you guys familiar with dealing with assignment of contracts? And if they say yes, perfect, there's your title company. They say no, no worries, move on to the next one. You'll find one who is. Next, the parties. This is the seller and the buyer. So the seller, they're gonna put their name or names if it's two people right here. And then for buyer, you're gonna go ahead and put your name if you're operating under yourself Or if you have an LLC, you're going to put the name of your LLC right here. Next is the inspection period. So check this out, notice it's left blank as well. So the inspection period, which we'll get into later about exactly what that entails, but we want this to hopefully be as long as possible. Most of the time my inspection period goes all the way up to close of escrow. Um, at minimum I will do like 7 days, but I would always recommend that you have at least 20 days inspection period because this is going to be the time that you have to go ahead and find a buyer. Next, check this out. Closing amounts to be paid as follows. So I love this because I want to— when I'm going through with the seller, they'll get to physically see me check off. Hey, look, escrow fees and costs, 100% by buyer. Standard title policy, buyer. HOA fees, everything else, buyer, right? So then they know, okay, yeah, you paying all the closing costs. Next, 1.11. So this is a fill-in-the-blank thing. Most of the time, I'd say 99% of our transactions, this is left blank. But it's what you do here is you're going to include any physical items that are on the property you want to be included in the sale. So for instance, let's say you're buying a house and you negotiate and you ask for the old Volkswagen Beetle that's in the garage. You want that to be included in the sale. If you do that, you need to make sure you throw it in writing right here. So you put, hey, um, 1998 Volkswagen Beetle in the garage to be included, right? Or maybe you want to make sure that you get the washer and dryer. You go ahead and throw it right here. Anything that's on the property that you want to be included. Maybe it's some artwork, maybe it's a chandelier, whatever. You include it right here. Now check this out, once you're done, you have a spot for your initials, buyer initials. Guys, even if you're signing under an LLC, you would put your initials right here. And also, another quick disclaimer is I am not an attorney. This is not considered legal advice by any means. You should absolutely consult with the legal professional or your attorney about going through this contract before you go ahead and use it. Next, seller's initials. So if there's two sellers, they're both going to need to initial. If there's one, they just need to initial on one of the boxes, doesn't matter which. Next, we go down here, additional terms and conditions. So this is where things can get really interesting. I'm not going to dive super deep into this right now, but here's where you can write in other terms that need to happen. Uh, for instance, seller and possession agreements. This is where we would add some stuff here. Um, or different things change, like for instance, um, We have a deal right now, we're looking at a whole portfolio of properties and the seller wants our earnest money deposit to become non-refundable after a certain amount of days. So we go ahead and we just include that information in here in additional terms and conditions. Next, purchase and sale of property. So this is where we're moving into the actual contract where we're talking about what's going on. It's letting everybody know, hey, the purchase price in accordance with the terms and conditions as set forth in this contract The seller wants to sell, the buyer wants to buy. The earnest money shall be credited towards the purchase price at close of escrow. That means if there's any money right here in the earnest money deposit, let's say that you're buying the house for $100,000 and you put down $1,000 EMD. Once you have the $1,000 EMD, you only got to add $99,000 to it. Now again, we are not actually putting up the money in wholesaling, somebody else is, so don't worry about it. Next, status of title. This is as soon as practical following the effective date. That's the date the contract signed. Escrow agent shall cause a current commitment for an Alta owner's policy of title insurance, and this commitment to be issued and delivered to seller and buyer. Buyer and seller shall satisfy their respective requirements to be closing set forth in the commitment prior to close of escrow. Seller shall remove all liens, clouds, encumbrances at or prior to close of escrow. We shall have the right to extend the closing date for up to 1 year from the date of closing if necessary to clear title for your property. Or to resolve any problems or issues with the property that arise after signing this contract. We dislike delays as much as you do. We will only delay clearing your title. So what we're saying here is, check it out, um, basically the title company is going to get— they're— the title company's job is to ensure title of the property so they can transfer it, right? So what they're going to do is, hey, number 1, seller, you're going to need to remove all the liens, clouds, and encumbrances. So this isn't something the seller actually does. Basically, the title company does it, but the seller needs to sign off on all of it. So they're going to send them information and be like, hey, you have this lien, we're going to have to pay this off. That's good. Okay, sign. Cool. And then it's also saying that, hey, we can extend close up to date— we can extend the close date up to 1 year if there's any kind of problems from clearing title. So this is just helpful for us if all of a sudden there turns— there's some crazy chain of title thing and, uh, close of escrow is only in like a month and we weren't able to get that situated in time. This will go ahead and automatically extend that. Now, this is super important here. Section 4, Inspection of and Access to the Property. So look, this is saying— this is all the rules right here. Buyer, in buyer's sole and absolute discretion, may, through written notice to the seller, cancel this contract during the inspection period set forth in Section 1.9 and obtain a return of the earnest money and any other items or things of value given to the buyer by the seller. What does this mean? This means that during these amount of days that we have right here, we can cancel the agreement for any reason. And if we do cancel, we are entitled to get 100% of our earnest money deposit back, right? This is what takes away all the risk in wholesaling. There is zero risk when it comes to wholesaling property because of this right here. Next, from the effective date through close of escrow, seller shall provide access to the property and will make the property reasonably available to buyer and to buyer's assignees, whoever you sign the property to, prospective assignees, people you may be assigning the property to, agents, representatives, inspectors, and authorized individuals to conduct inspections and walkthroughs of the property, right? So check it out, we are getting all in writing, letting, you know, this is, you know, in black and white, we know, hey, we're allowed to get into the property and our people that we are looking, because once we have this signed, We have what's called— why isn't it coming to me? We have what's called equitable interest in the property, and we're allowed to market it. This is what allows wholesaling to happen, right? Because now we can market it to cash buyers. This gives us access so that we can get our cash buyers into the property, right? Check that out. Next, instructions to release the deposit upon cancellation during the inspection period. Here we just have even more meat in the contract that says, look, if we do cancel, we're getting our EMD back. This contract right here is 100% made to protect you, the wholesaler. That's how this thing is designed. I had attorneys, spent a lot of money on attorneys to write this contract so it's done that way. And look, so when you're explaining this to somebody, you're gonna do exactly as I'm saying right here. You want them to know that we're not trying to deceive anybody. We need them to know absolutely what's going on. So when I'm going through these two sections, I'm gonna say, look, this is their inspection period. It says that, you know, you're gonna give us reasonable access to the property. You're gonna have reasonable access to any of our third parties that we work with access to the property. 'And also look, if for any reason we need to cancel this agreement, we're getting our EMD back. Is that fair?' They're going to say yes. Next, lead-based paint disclosure. So this is just some standard stuff that's in agreements. If the home or the property was built before 1978, the seller needs to notify the buyer of any known lead-based paint or hazards from lead-based paint in the property and provide the buyer with a lead-based paint risk assessment or inspections in seller possession. Now check this out. This is just the most important part. This is what I always say. Buyer agrees to review— or I'm sorry, not this part, this is all blah blah blah— that the last sentence here: buyer waives the 10-day opportunity to conduct a lead-based paint inspection risk assessment. We're showing them like, hey look, we don't even give a shit, don't worry about it. Next, as-is purchase, right? This is saying we're buying the property as is, the condition of the effective date. It needs to be delivered to the buyer in substantially the same condition. And so don't go taking sledgehammers through all the walls walls, anything like that. In the event of loss or damage to the property or a portion prior to closing, the buyer may terminate this contract, and the earnest money, any other items of value given to buyer by the seller— I'm sorry, given to the buyer— given by the buyer to the seller will be refunded. All right, next. Again, guys, this is just to cover your ass. This is so that, hey, if you're wholesaling, something goes crazy, you know, all of a sudden the house gets hit by a hurricane or whatever, you're not going to be responsible. You're not going to lose your EMD. Like I said, zero risk. Next, cure remedies, or cure notice remedies, attorney's fees. So is what this is saying. Now I'm gonna go ahead and read through you and then I'm gonna tell you how you're gonna explain to somebody. So if a party fails to comply or perform under this contract, the other party shall deliver a notice to the breaching party specifying the non-compliance. If the non-compliance is not cured, not taken care of, within 10 calendar days after receipt, the failure to comply shall become a breach of contract. —A cure notice is not required upon Seller indicating an intention to or refusing to close escrow by the close of escrow date. If Seller shall breach any of the terms or provisions of this Contract, Buyer may proceed against the Seller for any claim or remedy the Buyer may have in law or equity, which includes but is not limited to specific performance and damages. If Buyer breaches this Contract, Seller accepts the deposit as the Seller's sole right to damages. The prevailing party in any lawsuit arising out of or to enforce this contract shall be awarded its reasonable attorney's fees, expert fees, and costs incurred prior to and/or after the filing of such lawsuit. Any attorney fees awarded in favor of Buyer may be paid to Buyer from the proceeds of the closing of the transaction contemplated by this contract. So again, guys, this is a bulletproof contract in favor of us, the buyer. So what this is saying is this is the instruction. This is how I explained to somebody. I said, this is the instructions if one of us breaches breaches contract. You're not planning on breaching contract, right? No, me neither. If they do, if we do, you need to send a secure notice. If we mess up, you're going to get entitled to the earnest money deposit. Now, we're professionals, we don't ever mess up. We get paid for buying houses, not for just wasting time. So, however, if you decide all of a sudden halfway through you get squirrely and decide you don't want to sell it anymore, we're going to be able to take you to court. Does that make sense? Okay, next, no oral changes or representations. This is saying, yo, what's in this contract, it doesn't matter what we talked about, is if it's not here in the black and white, it doesn't matter. Now of course we always want to include everything we talked about and promise every— and everything we promised the seller, we want to be able to guarantee them, but this is just to protect you. Next, notices. This saying any and all notices, demands, or requests required or permitted shall be in writing. And they shall be effective upon personal delivery of personal delivery, email, or upon receipt. So this is just saying, right, anything for the transaction, it's going to be in writing. Next, miscellaneous addendums, acknowledgments, additional terms and conditions. This is, hey, the parties agree to be bound by the additional terms and conditions specified in 1.12 right here, saying that that's part of the contract. And if such terms and conditions conflict with any other provision of this contract, The terms and conditions set forth in Sections 1.12 shall control. This is saying if anything in here goes against anything else, what's in here is the prevailing information. Next, check this, guys. Look right here. Assignability and Novation. The buyer reserves the right to assign this agreement to a third-party purchaser or to novate this agreement with a replacement agreement with a third-party purchaser and in such event, seller shall cooperate fully at buyer's request to transfer the property directly to the third-party purchaser, provided, however, the buyer shall be responsible for all additional transfer tax payable by seller as a result of the assignment or novation. Seller's consent to such assignment or novation is not necessarily required. So we're going to say this, hey look, we can assign this property to any other company or LLC. All that means is the name of the buyer might change, but everything, you get everything you're looking for, right? You still get that price we talked about, everything stays the same, we're still paying all the closing costs, the only thing that changes is the name of the buyer. Does that make sense? Yep, perfect. Next, buyer's marketing of its contract interest. Buyer has the right to market its contract interest to the property in buyer's sole discretion, which may include but is not limited to listing the property and buyer's contract interest in the property on the MLS. Seller hereby appoints buyer as its attorney-in-fact with the full power and authority to act in the name and place of seller for the execution of any and all documents necessary to list the property and buyer's contract interest in the property of the MLS. Now, this section right here is what allows us to list our wholesale deals on the MLS. Now, again, I'm not an attorney. I would consult with an attorney about things like this. It is going to change state by state, but we absolutely do list our properties on the MLS. Next, time is of the essence. Time is the essence with respect to all the performance and terms, conditions of the contract, right? Choice of law. This contract shall be governed and enforced under the laws of the state where the property is located. No problem. Next, memorandum of contract. This is important. This is saying that the seller agrees that the buyer, you, may execute, acknowledge, and record a memorandum or affidavit of this contract to the official records of the recorder in the county in which the property is located. To let people know we have a purchase contract to purchase your property. And the seller's signature on any affidavit or memorandum is not required for the recording. So what this means is we can record a memorandum. Now, what that is essentially is it's you putting a lien on the property. So with— if this happens sometimes where we will sign a contract with the seller and they'll decide, oh, hey, I actually found a different person who's offering me $5,000 more, I'm gonna sell it to them. But we already had a contract. We filed memorandum, they won't be able to sell that contract to that person because now we're gonna have a lien. And remember, look, they have to clear liens before they can transfer title. So we can, you know, we'll be entitled to get whatever we were, we were hoping to get as our assignment. Next, electronic executions and counterparts is saying, hey, it can be executed by electronic means, DocuSign, HelloSign, right, that kind of thing. And in any number of counterparts, each of which shall be deemed an original, and all of which shall be taken together shall constitute constitute one instrument. This is saying if you go ahead and add on addendums or anything, it's all part of one agreement. Next, buyer disclosures and voluntary agreement. The seller understands and acknowledges that one or more members— so one or more members of people in my organization are real estate agents, so we have to disclose that in here. If you don't, you can take this out, but you do need to include this ending part: buyer is a wholesale buyer, which means buyer is an investor who in its discretion may assign its contractual interest in the property for a profit. The purchase price may not reflect the property's fair market value. Guys, look, we're being super straight up with them. I'm all about being honest. Honesty is the best policy. We're telling them right here in the black and white, yo, we're wholesalers and it's working for us, right? That's a limiting belief that like you can't just be honest with people and then you have to snake around them. I don't believe in doing business that way. But check it out, dude, that's the whole contract. Seller acknowledges and agrees that seller has read and fully understands the terms and conditions of this contract and is entering into this contract voluntarily and has not been threatened, coerced, or intimidated into signing this contract. Now your seller is going to go ahead and put the date right here. Um, they're going to put their name, so they'll print their name where it says name, and then by, they'll sign, they'll add their email. And then same thing, name, print, by, sign, email, date. And then you as the buyer, right, company name, and then Buy. I'm gonna write— I'm gonna sign Tyson Smith, and then I'm gonna write member because it's part of an LLC. If you're just doing this personally, you just need to sign your name, and that's it, guys. Once you have this contract signed, now you have equitable interest in the property, and you can go get it assigned for a profit, make your assignment fee. Guys, the assignment contract is also included in this, and like I said, you even get a bonus— my $100,000 a month closer script. That's a script that I have been revising and editing over the past 2 and a half, almost 3 years. Been working a long time to perfect our sales process, and I'm giving it away all to you guys absolutely for free. All I ask is that you guys, in payment back to me because I'm giving you guys something, all I ask is you take the time to like this video, subscribe, and leave a comment. That's all I ask of you guys. I'd absolutely appreciate it. Now check this out. This again, guys, this is all the tools you need to start wholesaling real estate. All that's left now is up to you to go take action. So if you guys need help on generating leads so you can go ahead and find them, I have a video for you right here. You can go check that out, and that's going to show you how you can start finding motivated homeowners that you can start making cash offers to so you can get them locked up on a contract and then assign that contract for profit. Again, make sure to like, subscribe, and leave a comment, and we'll see you guys on the next Next one.
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