Delaware SB 201: Wholesalers Now Need a Real Estate License (2026)

What is Delaware SB 201?

Delaware Senate Bill 201 (SB 201) is a new law, signed by the Governor on June 1, 2026, that amends Title 24 of the Delaware Code and fundamentally changes how real estate wholesaling works in the state. In plain terms: the business of wholesaling real estate is now treated as the brokerage of real estate, and anyone doing it as a business must be a licensed real estate broker.

If you wholesale properties in Delaware — or plan to — this is the most consequential law you need to understand right now. It moves Delaware from a disclosure-only regime to a full licensing requirement, and it comes with a hard deadline.

What "wholesaling" now means under Delaware law

One of the most important parts of SB 201 is that it puts a legal definition of "wholesaling" on the books for the first time. Under the Act, wholesaling is when a person:

1. Enters into an agreement of sale as the buyer,
2. Markets that property to others, and
3. Assigns the agreement to a different buyer and collects a fee for that assignment.

That is the classic wholesale assignment model — putting a property under contract and selling the contract for an assignment fee without ever taking title. Delaware has now written that activity directly into its real estate brokerage statute and declared that marketing property this way is the brokerage of real estate.

Do you need a real estate license to wholesale in Delaware?

Yes, if you do it as a business. SB 201 requires anyone engaged in the business of wholesaling to be licensed under Chapter 29 of Title 24 — the same chapter that governs real estate brokers and salespersons.

There are two nuances worth knowing:

• The one-off exemption. Section 1 of the Act specifically exempts an individual who is not engaged in the business of wholesaling from needing a license. A person doing a single, isolated transaction is treated differently from someone running wholesaling as an ongoing business.
• The 270-day runway. The Act gives affected people 270 days to become licensed. That grace period is your window to either get licensed or restructure how you operate — it is not a reason to wait.

Why Delaware passed SB 201

The legislature was clear about the problem it was targeting. The bill's own synopsis notes that while assigning a purchase agreement is "unobjectionable" in many situations, it is sometimes used to charge an excessive assignment fee — which the legislature described as "equity stripping" of money that should have gone to the seller.

By bringing wholesaling under real estate brokerage regulation, Delaware is applying the same licensing, oversight, and consumer-protection framework to wholesalers that already applies to agents and brokers. Notably, SB 201 is modeled on similar laws already in place in Pennsylvania, so it reflects a broader regional trend rather than a one-off.

What about HB 287? Does the disclosure law still apply?

Yes. Delaware's earlier wholesaling law, HB 287 (enacted August 1, 2023), remains in effect. HB 287 requires:

• Written disclosure of assignment intent in real estate contracts, and
• Disclosure of the assignment fee to the seller before contract execution.

Under HB 287, non-compliance allows the seller to void the contract. SB 201 does not replace those disclosure rules — it stacks on top of them. So a Delaware wholesaler now has to satisfy both the disclosure requirements of HB 287 and the licensing requirement of SB 201.

Stronger protections: the Real Estate Guarantee Fund

SB 201 also strengthens the consumer-protection backstop behind Delaware real estate transactions. The Act:

• Increases the amount a member of the public can recover from the Real Estate Guarantee Fund from $25,000 to $50,000, and
• Raises the Fund's minimum balance from $250,000 to $350,000.

It also gives the commissioners more discretion in awarding funds and adds financial-reporting requirements around the Fund. The takeaway for wholesalers: the state is expanding the safety net for consumers harmed in these transactions, which signals how seriously it is treating the space.

What Delaware wholesalers should do now

If you operate in Delaware, here's a practical checklist:

1. Decide on licensure early. If wholesaling is your business, plan to get licensed under Chapter 29 well before the 270-day window closes. Don't leave it to the last month.
2. Keep disclosing. HB 287's written disclosure of assignment intent and fees still applies to every contract. Don't let the new licensing conversation distract you from the disclosure requirement you already had.
3. Review your contracts and marketing. Because "marketing" the property is now part of the statutory definition of wholesaling-as-brokerage, take a fresh look at how you advertise assignments.
4. Talk to a Delaware real estate attorney. This is a shift from a disclosure-only regime to a licensing requirement, and the exemption for non-business activity is fact-specific. Get advice tailored to how you actually operate.

How to stay ahead of wholesaling legislation

Delaware is not an outlier — states across the country are actively legislating around wholesaling, assignment fees, and licensing. The hard part for investors is simply knowing when a bill like SB 201 passes, because these laws are often buried in broadly-titled amendments to a state's broker-licensing statute (SB 201's official title only mentions "Real Estate Brokers and Salespersons").

That's exactly why we built the Revamp365 Wholesale Legislation Tracker, which monitors real estate wholesaling bills state by state and flags what each one means for investors. You can see Delaware's bills — including SB 201 and HB 287 — on the Delaware legislation page.

This article is for general informational purposes only and is not legal advice. Consult a licensed Delaware real estate attorney about how SB 201 applies to your specific situation.