Wholesale Real Estate Laws
— Frequently Asked Questions

Real estate wholesaling is the practice of putting a property under contract and then assigning (selling) that contract to an end buyer for a profit — without ever taking title to the property. As of 2026, wholesaling is legal in most U.S. states, but a growing number of states now require disclosure to sellers, a real estate license, registration, or all three.

Five states brought new wholesaling requirements into force between March and August 2026, and Maryland's took effect the autumn before. Ohio SB 155 took effect March 2, 2026 and requires wholesalers to disclose their intent and business model when contracting with an owner. Connecticut's HB 7287 (Public Act 25-168) took effect July 1, 2026 and requires registration with the Department of Consumer Protection, a three-business-day seller cancellation window, and a closing date no more than 90 days out. Louisiana Act 807 took effect August 1, 2026, adding a five-day seller rescission right, a mandatory cancellation notice, and a deposit of at least 1% of the purchase price held in escrow. Missouri SB 973 took effect August 28, 2026 and requires a written wholesaler disclosure, on a statutory form, at least 14 calendar days before the owner signs the contract. Delaware SB 201's seller disclosure and right-to-cancel duties took effect August 30, 2026, and from February 26, 2027 it treats wholesaling as licensed real estate activity. Maryland's HB 124 and SB 160 (chapters 508 and 509) took effect October 1, 2025. Next up: from January 1, 2027, Rhode Island requires a license to sell or assign equitable interests in real estate more than once in 12 months. Use the state pages in this tracker for the bills we currently monitor, and confirm anything you plan to rely on against the official state source.

It depends on your state, and the answer is changing. No federal law requires a license to wholesale. Most of the state laws that have passed recently regulate wholesaling through disclosure, registration, and seller cancellation rights rather than by requiring a broker's license outright — Louisiana, Ohio, Connecticut, Maryland, and Missouri all took that route. Some states go further: Delaware treats wholesaling as licensed real estate activity from February 26, 2027, and Rhode Island requires a license for more than one equitable-interest deal in 12 months from January 1, 2027. Others treat marketing an equitable interest to the public as brokerage activity. As a general rule, the more you market properties publicly rather than to a known buyer list, and the more deals you assign for a fee, the likelier you are to fall inside a licensing or registration requirement. Because this varies by state and changes session to session, confirm your own position with a real estate attorney licensed in the state you are operating in — this tracker is a monitoring tool, not legal advice.

A contract assignment is when a buyer transfers their rights in a purchase contract to a third party (the end buyer) for a fee — the assignment fee. It is regulated because regulators argue that marketing and selling contractual rights without a license is effectively acting as a real estate broker. Several states now require disclosure of the assignment fee to the original seller or require a license to engage in this activity.

When you sign a purchase contract on a property, you acquire equitable interest — the right to purchase the property at the agreed price. Wholesalers sell this equitable interest (via contract assignment) rather than the property itself. Several states have passed or proposed laws restricting the marketing or transfer of equitable interest without a real estate license, which is a direct challenge to the standard wholesale business model.

A double-closing (also called a simultaneous close or back-to-back closing) involves two separate transactions: first, you buy the property from the seller; then, you immediately sell it to the end buyer. Because you briefly hold title, many wholesalers use this method to avoid contract assignment restrictions. It is generally legal, but requires two sets of closing costs and a transactional lender. Do not assume it routes around a disclosure law: several recent statutes are written around the practice of wholesaling itself rather than around the assignment mechanism, so a double-close can still fall inside them. Check the statute in your state.

Your options typically include: (1) obtain your real estate license in that state; (2) partner with a licensed broker who handles the marketing and sale; (3) use a double-closing structure if permitted; (4) limit your activities to states without restrictions; or (5) build a direct-to-buyer network to avoid public marketing. Consulting a real estate attorney in the specific state is strongly recommended before operating there.

A disclosure requirement obliges you to tell the seller, in writing, that you are a wholesaler, that you intend to assign the contract, and that you may profit from that assignment. A registration requirement goes further and makes you sign up with a state agency before you can operate — Connecticut, for example, requires registration with its Department of Consumer Protection as of July 1, 2026. These rules stop short of requiring a broker's license, but they create real obligations: Louisiana Act 807, in force since August 1, 2026, makes a non-compliant contract void and terminable by the seller, with the deposit returned.

Legislative sessions typically run January–June each year. New bills can be introduced or passed at any time during a session, with some states having year-round sessions. The Revamp365 Legislation Tracker syncs with LegiScan daily to capture new introductions, committee actions, and final passage or defeat of bills.

"Introduced" means the bill has been filed and is working through committee. "Passed One Chamber" means one chamber of the legislature has approved it. "Awaiting Governor" means both chambers have passed it and it is waiting to be signed or vetoed. "Passed" means it has been enacted but is not in force yet, or we have not yet verified when it takes effect; where we have the date, the bill shows "Takes effect" with it. "Enacted — In Force" means we have checked its effective date against the official source and that date has arrived. "Vetoed" and "Failed / Dead" mean it did not become law. Most bills introduced each session never become law, but introduction signals legislative intent and warrants monitoring.

Unlikely in the near term. Most proposed laws target disclosure and licensing rather than outright prohibition. The general trend is toward increased consumer protections and transparency (requiring sellers to understand they are dealing with a wholesaler) rather than banning the practice altogether. Staying informed and adapting business practices to comply with evolving state laws is the most effective long-term strategy.

The Revamp365 Legislation Tracker links each tracked bill to its page on the state legislature's own website where one is available, and to its LegiScan page otherwise. You can also search state legislative portals directly (e.g., ncleg.gov for North Carolina, scstatehouse.gov for South Carolina). For legal interpretation, always consult a licensed real estate attorney in the relevant state.