Delaware Legislative Bills

SB 201, signed into law on June 1, 2026, is Delaware's most significant wholesaling law to date. It amends Title 24 of the Delaware Code to define “wholesaling” — entering into an agreement of sale as a buyer, then marketing the property and assigning that agreement to a different buyer for a fee — and classifies that activity as the brokerage of real estate. Anyone engaged in the business of wholesaling must now be a licensed real estate broker, with a 270-day window to become licensed. The law is modeled on similar legislation in Pennsylvania.

Yes. Under SB 201, the business of wholesaling real estate is treated as real estate brokerage and must be conducted by a licensee under Chapter 29 of Title 24. An individual who is not engaged in the business of wholesaling is exempt, but anyone doing it as a business has 270 days from enactment to become licensed.

The legislature found that while assigning a purchase agreement is unobjectionable in many cases, it is sometimes used to charge an excessive assignment fee — “equity stripping” money that should go to the seller. SB 201 brings wholesaling under real estate brokerage regulation to protect sellers and members of the public in these transactions.

HB 287, enacted August 1, 2023, was Delaware's earlier wholesaling measure. It requires written disclosure of assignment intent in real estate contracts and requires assignment fees to be disclosed to the seller before contract execution, with non-compliance allowing the seller to void the contract. HB 287's disclosure rules remain in effect alongside SB 201's new licensing requirement.

Because SB 201 defines wholesaling-as-a-business as real estate brokerage, operating without a license after the 270-day grace period exposes wholesalers to enforcement under Delaware's real estate licensing laws. Wholesalers should either obtain a license or restructure their activity to stay compliant.

Yes. SB 201 increases the amount a member of the public may 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, expanding protections for consumers harmed in real estate transactions.

Investors who wholesale should plan to become licensed within the 270-day window, continue disclosing assignment intent and fees as HB 287 requires, and review their contracts and marketing practices. Consulting a Delaware real estate attorney is recommended given the shift from a disclosure-only regime to a licensing requirement.

Yes. HB 287 already required disclosure of assignment intent and fees before contract execution, and SB 201 goes further by requiring wholesalers to be licensed brokers, targeting excessive assignment fees, and strengthening the Real Estate Guarantee Fund. Together they give Delaware sellers meaningfully stronger safeguards.