Wholesaling Disclosure

What Is Real Estate Wholesaling?

Real estate wholesaling is a legal transaction strategy in which a company (Closureforu) enters into a Purchase and Sale Agreement (PSA) with a property owner (Seller), then assigns that contract to an end Buyer before closing. Closureforu does not purchase the property itself. Instead, we transfer our contractual right — known as equitable interest — to a qualified Buyer who closes directly with the Seller at a title company.

What Is Equitable Interest?

When you sign a PSA with Closureforu, we acquire equitable interest in your property. This is a recognized legal concept meaning we hold a contractual right to purchase the property under the terms agreed upon in the PSA. Key points about equitable interest:

• It is a contractual right, not an ownership right. We do not take title to the property.
• It is assignable unless the contract specifically prohibits assignment. All Closureforu PSAs include an assignment clause.
• The Seller retains legal title to the property until closing with the end Buyer.
• The Seller's obligations are only to perform under the original PSA terms — nothing changes when the contract is assigned.

The Assignment Fee

Closureforu earns revenue through an assignment fee — the difference between the price in our PSA with the Seller and the price the end Buyer agrees to pay. In the interest of full transparency:

How the Process Works

1. Property Identification: Closureforu identifies distressed or motivated-seller properties through public records analysis, direct outreach, and inbound inquiries from property owners.
2. Seller Contact & Evaluation: We contact the property owner, evaluate the property's condition and market value, and present a fair cash offer based on comparable sales and current market conditions.
3. PSA Execution: If the Seller accepts our offer, both parties sign a Purchase and Sale Agreement. The PSA includes an inspection period (typically 14–30 days) and clearly states that the contract may be assigned.
4. Due Diligence & Buyer Matching: During the inspection period, Closureforu conducts due diligence (title search, lien verification, property assessment) and simultaneously matches the deal with qualified end Buyers from our investor network.
5. Contract Assignment: Once a Buyer is secured, Closureforu executes an Assignment of Contract Agreement, transferring our equitable interest to the Buyer. The assignment fee is disclosed in this agreement.
6. Closing: The end Buyer closes directly with the Seller at a neutral title company. The Seller receives their agreed-upon sale price, the Buyer receives the property, and the assignment fee is disbursed to Closureforu from the closing proceeds.

Seller Rights

As a property Seller working with Closureforu, you have the following rights:

• Right to Cancel During Inspection Period: You may cancel the PSA for any reason during the inspection period without penalty. Your earnest money deposit (if applicable) will be returned in full.
• Right to Your Agreed Price: The price in your PSA is your price. Regardless of what the end Buyer pays (including the assignment fee), you receive exactly what was agreed upon in your contract.
• Right to Remain in Property: You are not required to vacate the property until closing. You retain full possession and use of the property throughout the process.
• Right to Legal Counsel: You are encouraged to have any contract reviewed by your own attorney before signing. Closureforu does not provide legal advice.
• Right to Disclosure: You have the right to know that your contract may be assigned. This is clearly stated in the PSA and is explained during the offer presentation.
• Right to Fair Treatment: You are protected by the Fair Housing Act and all applicable anti-discrimination laws. Closureforu will not discriminate against you for any reason.
• Right to Withdraw: After the inspection period, withdrawal rights are governed by the specific terms of your PSA, including any earnest money provisions.

Buyer Rights

As a Buyer (investor, hedge fund, or individual) receiving an assigned contract from Closureforu, you have the following rights:

• Right to Full Disclosure: The assignment fee is fully disclosed in the Assignment of Contract Agreement. You know exactly what you are paying and how the total acquisition cost breaks down.
• Right to Due Diligence: You may conduct your own independent inspections, appraisals, and assessments of the property before closing.
• Right to Review All Documents: You receive copies of the original PSA, the Assignment Agreement, title report, and all material disclosures before closing.
• Right to Title Insurance: Closings are conducted through licensed title companies that provide title insurance to protect your ownership interest.
• Right to Walk Away: If your due diligence reveals material issues not previously disclosed, your rights to cancel are governed by the terms of the Assignment Agreement and applicable state law.
• Right to Legal Counsel: You are encouraged to have all documents reviewed by your own attorney.

State-Specific Considerations

• Illinois: Requires wholesalers to disclose their intent to assign and may require a real estate license if conducting a high volume of assignments in certain circumstances.
• Oklahoma: Wholesalers must hold equitable interest and cannot market properties they do not have under contract.
• Ohio: Recent legislation may require wholesalers to provide specific disclosures to Sellers about the nature of the transaction.
• Virginia: Wholesaling is permitted but marketing of properties by non-licensed individuals is restricted.
• Pennsylvania: Contract assignments are permitted; however, advertising a property for sale without a license may be restricted.
• Other States: Several states are considering or have enacted legislation affecting wholesaling practices. Closureforu monitors legislative changes and adapts its practices to remain compliant in every jurisdiction where we operate.

Closureforu's commitment: We comply with all applicable state and local laws. If a transaction occurs in a jurisdiction that requires broker licensing for assignments, Closureforu will either work with a licensed broker or structure the transaction in a legally compliant manner (such as a double closing). We will never ask you to participate in a transaction that violates applicable law.

Fair Housing Compliance

Closureforu is fully committed to the Fair Housing Act (42 U.S.C. § 3601 et seq.) and all applicable federal, state, and local fair housing laws. Our commitment includes:

• Equal Opportunity: We provide equal service to all Sellers and Buyers regardless of race, color, national origin, religion, sex (including gender identity and sexual orientation), familial status, disability, or any other protected class.
• AI Fairness: Our AI-powered lead scoring and Buyer matching systems are designed to use only property-level data (tax records, liens, condition, market comparables). They do not incorporate demographic data, neighborhood racial composition, or any protected-class information.
• Regular Audits: We conduct regular audits of our automated systems to identify and eliminate any potential disparate impact discrimination.
• Training: All personnel involved in Seller outreach and Buyer interactions are trained on fair housing requirements.
• Complaint Process: If you believe you have experienced discrimination, contact us at admin@closureforu.com or file a complaint with HUD at hud.gov/fairhousing.

How Our Process Protects All Parties

For Sellers

• No repairs required: We take properties as-is, eliminating the burden of costly repairs.
• No fees or commissions: Sellers pay zero fees. The assignment fee is borne by the Buyer.
• Speed: Our process can close in as little as 7 days, which is critical for Sellers facing foreclosure, tax sales, or other time-sensitive situations.
• Guaranteed price: The PSA locks in your sale price. Market fluctuations between contract and closing do not affect your proceeds.
• Title company closing: All transactions close at a neutral, licensed title company. Funds are handled through escrow, and title insurance protects all parties.
• Inspection period exit: You can cancel during the inspection period at no cost.

For Buyers

• Off-market deals: Access to distressed properties not listed on the MLS, often at below-market prices.
• Pre-vetted properties: Closureforu conducts initial due diligence including title search and lien verification before presenting the deal.
• Transparent pricing: The assignment fee is fully disclosed. You know your total acquisition cost before you commit.
• Clean title: Title companies clear all liens and encumbrances at closing, and title insurance is provided.
• Efficient process: Contracts are pre-negotiated with Sellers, reducing the time and complexity of acquisition.

For All Parties

• Licensed title company: Every closing is handled by a neutral, licensed title company that protects all parties' interests.
• Escrow protection: All funds flow through escrow. No money changes hands outside of the closing process.
• Legal documents: All contracts are prepared using industry-standard legal templates and are available for review by each party's attorney.
• E-signature compliance: All electronically signed documents are legally binding under the ESIGN Act and UETA, with full audit trails.
• Record keeping: Complete transaction records are maintained for legal compliance and are available to authorized parties.

Questions?

We believe in full transparency. If you have any questions about our wholesaling process, your rights, or any aspect of a transaction, please do not hesitate to contact us:

• General Inquiries: admin@closureforu.com
• Deal-Specific Questions: deals@closureforu.com
• Website: closureforu.com

We are also happy to walk you through the process over the phone or schedule a consultation to address your specific situation.