As the end buyer, the settlement statement showed a $9,000 fee I'd priced in
Been planning my first purchase for a long time and it ended up coming from a wholesaler two states away from the house, which is not how I pictured it.
The property was a 1960s 3 bed slab ranch in a stable blue collar neighborhood, tenant in place at $1,050. He had it under contract at $83,000 and offered it to me at $92,000. He was upfront about the fee, which is why I took the call seriously.
What I asked for before I signed anything, since this was my first time on this side:
- A copy of the original purchase agreement between him and the seller, unredacted. I wanted to see the price, the closing date, and whether the seller had signed anything acknowledging the resale. He'd had the seller sign a disclosure at contract, which was the moment I stopped worrying.
- The assignment agreement itself, so I could read what I was actually buying. I was buying his position in a contract, not the house directly, and that distinction changes what happens if the seller doesn't perform.
- The title commitment, read line by line. There was a small municipal lien from a code case, about $1,400, which we split.
- Confirmation the fee would appear on the settlement statement rather than being paid outside closing. It showed up as $9,000 and my lender had no issue with it, but how fees get shown and what a lender will allow varies, so I asked mine in writing first.
Closed at $92,000 plus $700 of my share of the lien and normal costs. Rent supports it and the tenant stayed.
What nearly broke it: the code lien surfaced eight days before closing and he wanted me to eat all of it. I said no and offered the split, and he took it in about four hours, which told me his fee had room in it.
What I'd keep: asking for the seller-side contract. Anyone who won't show it is telling you something.