Buying a Wholesale Deal in Florida: Assignments, Double Closings, and What to Verify
By Matthew Tavera ยท
Buying from a wholesaler can be a fast way to find deals in Polk County. Here is how assignments and double closings work and what to verify first.
Many investors in Lakeland and Polk County buy their first off-market properties from wholesalers. A wholesale deal can be a good way to find properties that never hit the MLS, but the structure is different from a normal purchase. Knowing how it works helps you ask the right questions and protect your deposit.
How a wholesale deal works
A wholesaler puts a property under contract with the owner, then either:
- Assigns the contract to you for an assignment fee. You step into the wholesaler's position as buyer and close with the seller. The fee is usually paid at closing and shown on the settlement statement.
- Double closes. The wholesaler buys the property in one closing and sells it to you in a second closing, often the same day. You buy from the wholesaler, not the original owner.
Either way, you are buying the property. The wholesaler is selling either their contract rights or, in a double close, a property they own for a short time.
Assignment vs double closing
| Assignment of contract | Double closing | |
|---|---|---|
| Who you buy from | Original seller | Wholesaler (after they buy) |
| Contract you sign | Assignment agreement plus the original purchase contract | A new purchase contract with the wholesaler |
| Fee visibility | Assignment fee usually shown on the settlement statement | Wholesaler's markup is the difference between the two prices |
| Closing costs | One closing | Two closings, two deeds |
In a double close, each deed generally carries Florida documentary stamp tax ($0.70 per $100 of consideration outside Miami-Dade County) along with other closing costs, and the parties' contracts decide who pays what. That added cost is one reason many wholesalers prefer assignments when the contract allows them.
Florida law: what buyers should know
Florida's real estate license law (Chapter 475, Florida Statutes) defines a broker as someone who, for another and for compensation, sells, buys, or offers real property. Operating as a broker without a license is prohibited. How that applies to a particular wholesaler's activity depends on the facts, and that is a question for the wholesaler and their attorney.
As of October 2026, we are not aware of a Florida statute written specifically to regulate wholesaling, though several other states passed wholesaling laws in 2025. Laws change, so check with a Florida real estate attorney if the structure of a deal matters to you.
What matters most as a buyer: read the actual contract. Confirm who the seller is, what the wholesaler controls, the closing date, and whether the contract allows assignment. Standard Florida residential contract forms include an assignability section where the parties choose whether the buyer may assign.
Your deposit
Wholesalers often ask for a non-refundable deposit once you sign the assignment. Before you agree:
- Know who holds it. A title company or attorney escrow account is common. Be cautious about sending a deposit directly to an individual.
- Know when it goes hard. If your deposit is non-refundable at signing, your due diligence needs to happen before you sign, not after.
- Verify wiring instructions by phone. Call the title company at a number you looked up yourself.
Disclosures
Under Johnson v. Davis (Fla. 1985), a seller of a home who knows of facts materially affecting its value that are not readily observable and are not known to the buyer has a duty to disclose them. Since October 1, 2024, Florida also requires sellers of residential property to give a flood disclosure at or before contract signing (s. 689.302, Fla. Stat.). On an assignment, the original seller is still the seller, so ask the wholesaler what disclosures the seller provided.
Red flags
- The wholesaler will not share the purchase contract or the seller's name before you commit.
- The ARV is supported only by "trust me" or by renovated homes far from the property.
- Pressure to send a non-refundable deposit before you can see the property or run title.
- Marketing that describes a property as owned when it is only under contract.
- A closing date that leaves no time for a title search.
How to stay on a wholesaler's call list
Clear criteria, fast answers, proof of funds on hand, and closing when you said you would. Our guides to proof of funds and analyzing a wholesale deal cover the rest, and our Polk County due diligence checklist lists the local offices to check.
If you are a wholesaler with a deal in Lakeland or Polk County, you can also send it to us for review. We look at each deal individually, and there is no guarantee we will buy or assign any particular property.
For general education only. Not legal, tax, insurance, or financial advice. Laws, rates, and program rules change; verify current requirements with the official source or a qualified professional before relying on them. Information current as of October 2026.
Frequently asked questions
What is an assignment fee?
It is the amount a wholesaler charges to assign their purchase contract to you. It is usually paid at closing and shown on the settlement statement. Your total cost is the contract price plus the assignment fee, so analyze the deal at that total.
Is wholesaling legal in Florida?
Buying property and assigning contracts are common transactions in Florida, and we are not aware of a Florida statute written specifically for wholesaling as of October 2026. Florida's license law still applies to anyone who acts for another for compensation, and laws change. Ask a Florida real estate attorney about any specific deal structure.
What is a double closing?
The wholesaler buys the property from the seller and sells it to you in a second closing, often the same day. There are two closings and two deeds, which usually means more closing costs than an assignment.
Should my earnest money go to the wholesaler?
It is usually safer for your deposit to be held by a title company or attorney escrow account named in the contract. Verify wiring instructions by calling the title company at a number you looked up yourself.
Does the seller still have to make disclosures on an assigned contract?
The original seller is still the seller. Florida case law (Johnson v. Davis) requires sellers of homes to disclose known material defects that are not readily observable, and since October 1, 2024, sellers of residential property must provide a flood disclosure. Ask the wholesaler what the seller provided.