Partnerships

How to structure a wholesale agreement with a real estate agent

When working with a real estate agent on a wholesale deal, clarity in your agreement is paramount. This defines roles, responsibilities, and how everyone gets paid from the start.

November 9, 2026 · 3 min read

Why work with an agent on a wholesale deal?

Real estate agents have access to properties and sellers you might not find through your usual outreach. They often have established relationships and can bring you deals that are not yet publicly listed.

Working with an agent can expand your pipeline significantly. It can also streamline some parts of the deal flow, especially regarding property access and initial seller conversations.

Defining the agent's role

Clearly define what the agent is expected to do. Is he or she sourcing properties, presenting offers, or simply providing access? Lay out these specifics in your agreement.

Some agents might be looking for a flat fee for introductions, while others might want a percentage of the assignment fee. Understand his or her expectations before drafting anything formal.

The assignment fee and agent compensation

Your agreement should explicitly state how the agent will be compensated. This is usually a percentage of your assignment fee or a fixed amount upon successful closing.

Be clear about the conditions for payment. For example, payment might only occur once the deal closes and you receive your assignment fee. This protects your interests if a deal falls through.

Key clauses for protection

Include a clause that indemnifies you from any actions taken by the agent outside the scope of your agreement. This protects you from unforeseen liabilities.

Specify the term of the agreement and conditions for termination. This ensures both parties understand the commitment and exit strategy. Also, consider a non-circumvention clause to protect your deal sources and buyers.

It is important to clearly outline the property identification process. This prevents disputes over who brought which deal to the table.

Communication and transparency

Set expectations for how and when you will communicate about leads and deals. Regular updates help keep everyone on the same page and avoid misunderstandings.

Transparency about your process, including the assignment of contract, is crucial. Ensure the agent understands the nature of wholesaling and how your business operates.

Due diligence responsibilities

Clarify who is responsible for what aspects of due diligence. Will the agent provide initial property data, or is that entirely your responsibility?

Your agreement should specify that the agent will not make any representations about the property or offer price on your behalf without your express written consent. This manages his or her authority and your liability. This is not legal advice; consult with an attorney.

Questions people ask

Should the agent be listed on the purchase agreement?

Typically, you as the investor will be listed as the buyer on the purchase agreement with the seller. The agent's role is usually handled through a separate agreement for his or her services to you, not directly with the seller on the purchase contract.

What if the agent wants a traditional commission?

If an agent wants a traditional commission, that usually means he or she wants to list the property, which is different from a wholesale deal where you are assigning a contract. Clarify early on if the agent understands and is amenable to a wholesale compensation structure, or if he or she prefers to bring you a deal and get a fee for that. You may need to revisit your strategy for this particular property.

How does this differ from a traditional referral?

A traditional referral might be a one-off introduction for which you pay a small fee. A wholesale agreement with an agent implies a more structured, ongoing working relationship where the agent actively participates in the wholesale transaction, even if only by bringing you the opportunity and helping facilitate access to the property and seller. This also is not legal advice; consult with an attorney.

What if the agent also represents the seller?

If the agent represents the seller, he or she will have a fiduciary duty to the seller. This can create a conflict of interest for your wholesale deal. It is usually cleaner if the agent is only working to bring you opportunities, rather than also representing the seller in the same transaction. This is not legal advice; consult with an attorney.