7-
You would be surprised. Some states have a 3-day right of recission. I have seen sellers back out in the past when they find out you are selling their house for more money. Sure you can fight it with an attorney but it is going to cost you big $$ to fight it. Also, it is not guaranteed that you will win! Judges tend to side with the homeowners.
So from my experience, I try not to let sellers know I am selling their house for more money I simply 'assign' my escrow and tell them I am closing in my Land Trust, Corporation or partners name. If 'assigning' contracts works for you, then go for it!
Best Regards,
Jeff Adam