Alpharetta, GA asked in Contracts and Real Estate Law for Georgia

Q: Earnest Money returned. My investor purchased a property and signed an Assignment Agreement

Thank you for any help. This contract was an assignment. Wholesaler 1 gave to Wholesaler 2. My understanding now, this contract was assigned to an Real estate agent, Agent Wholesaled to 1. Wholesaler 1 to 2. Investor purchased a property and signed a non refundable agreement sold as is. Visit the property am morning. Took the contractor later on that afternoon, its raining in the property plastic gave way. Massive raining into the property. Created more damage. Secondly, the wholesaler didn't disclose the floor foundation was bad. Gave no disclose at all. I called the "TRUE Seller" of the property to ask if he knew of the Wholesaler 2, he said no. He has a real estate agent. Ask him if he assigned it to a Wholesaler 2, he said no. He has a real estate agent. Ask for the original contract and they wont release it. I know the Wholesaler 1 who gave it to Wholesaler 2 didn't have any right to assign this contract? How do I get this investor deposit back. Thank you!!!

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1 Lawyer Answer
James Clifton
James Clifton
  • Fayetteville, GA
  • Licensed in Georgia

A: The simple answer is you file a lawsuit naming all of the parties - the original seller, wholesaler 1, wholesaler 2, and the real estate agent. One of the biggest issues with wholesaling is that it has severe issues with fraud. Oftentimes, there is a failure to disclose the property condition, intent of the parties, source of funding, and/or parties in interest. Because of this, these transactions are ripe targets for lawsuits.

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