Wholesaling Laws by State
19 states now regulate real estate wholesaling. 32 jurisdictions have no wholesaling-specific statute. Full citations and effective dates below.
Reviewed quarterly. Last reviewed July 7, 2026.
What "Wholesaling Regulation" Actually Means
Wholesaling itself, putting a property under contract and assigning that contract to an end buyer for a fee, is legal everywhere. What has changed since 2019 is that a growing list of states now attaches conditions to it. Those conditions fall into three buckets:
- Disclosure requirements. The wholesaler must tell the seller, the end buyer, or both, in writing, that it holds only an equitable interest, intends to assign the contract for a fee, and may never take title. Several states prescribe the exact language, timing, and font size.
- Licensing triggers. Some states have redefined "brokerage" so that publicly marketing a property, or the contract interest in it, that you do not own requires a real estate license. In those states, unlicensed public wholesaling is treated as unlicensed brokerage, with fines and in some cases criminal penalties.
- Cancellation rights. Newer statutes give the seller (and sometimes the buyer) a window to cancel a wholesale contract without penalty after receiving the required disclosure. In several states that right cannot be waived.
If you operate in a regulated state, build the required disclosures into your contract package from day one. Our free investor forms library includes a wholesaler disclosure notice, and each state purchase agreement page flags the local rule.
The 19 States That Regulate Wholesaling
Click a column header to sort. Click a state name for its full purchase contract requirements.
| State | Type | Effective | Statute | What it requires |
|---|---|---|---|---|
| Alabama | Disclosure | August 1, 2023 | Ala. Code 8-42-1 through 8-42-3 (Act 2023-201, SB 228), effective August 1, 2023 | Disclosure regime, not licensing: wholesaler may lawfully acquire and assign an equitable interest in single-family residential property for a fee ONLY IF it makes the three written disclosures (intent to market before marketing begins; nature of equitable interest to end buyers; 3-business-day advance notice of assignment effective date to seller). Violation is a Class C misdemeanor plus civil liability to the person owed disclosure equal to THREE TIMES the assignment fee. Same act voids and prohibits recording 40-year 'unfair service agreements' (NTL-style right-to-list agreements) |
| Arizona | Disclosure + cancellation right | 2022 (HB 2747) | A.R.S. § 44-5101 (HB 2747, 2022) | No license required, but mandatory written wholesaler-status disclosure on both buy side and sell side of residential wholesale deals; failure gives counterparty cancellation right before close of escrow (earnest money refunded to buyer / retained by seller depending on which side failed). No 2024-2026 amendments found. |
| Connecticut | Registration + cancellation right | July 1, 2026 | Conn. Public Act 25-168 (2025), effective July 1, 2026 (standalone bill HB 5572 died; provisions enacted via budget implementer) | Wholesalers must hold a DCP registration ($285 biennial fee) before entering wholesale contracts; contracts must include a 3-business-day no-penalty seller cancellation/attorney-review provision and max 90-day closing date (auto-termination absent signed written extension); assignment to a third party requires written notice identifying wholesaler status plus delivery of the seller's residential condition report; recording wholesale contracts as liens is prohibited; violations are CUTPA violations. Independently, paid matchmaking without taking title has long risked unlicensed brokerage under CGS 20-325. |
| Delaware | Licensing + disclosure (phased in) | June 1, 2026 (licensing from August 30, 2026) | Delaware SB 201 (153rd General Assembly), signed June 1, 2026, amending 24 Del. C. ch. 29 | Delaware now regulates wholesaling: definitions effective June 1, 2026; wholesalers must become real estate licensees effective Aug. 30, 2026 (270-day transition); consumer-protection provisions (wholesale-transaction disclosure that the contract will be assigned for a fee, seller's right to an appraisal and independent advice, cancellation rights patterned on Pennsylvania law) effective Feb. 26, 2027. Advertising a property you do not own was already prohibited; only the contract interest may be marketed. |
| Illinois | Licensing | 2019 (P.A. 101-357) | 225 ILCS 454/1-10 (Real Estate License Act of 2000, 'broker' and 'pattern of business' definitions, added by P.A. 101-357 (2019)); penalty 225 ILCS 454/20-20 | Broker license required for anyone who engages in a 'pattern of business' of buying, selling, offering, marketing for sale, or otherwise dealing in contracts, including assignable contracts for the purchase or sale of, or options on, real estate. Pattern of business = 2 or more such occasions in any 12-month period (alone or with commonly owned entities). Practical effect: max 1 unlicensed wholesale/assignment deal per rolling 12 months; civil penalty up to $25,000 per violation. |
| Indiana | Disclosure + cancellation right | July 1, 2024 | IC 32-21-16.5 (P.L. 47-2024, eff. 7-1-2024); license law IC 25-34.1 | Disclosure regime, not licensing: no license required to assign your own purchase contract (principal exemption IC 25-34.1-3-2(b)), but every solicitation must carry the verbatim 'This solicitation is not from a licensed real estate professional.' disclosure plus the solicitor's and expected purchaser's legal names, agreements must be written with an expiration date, homeowner gets a 2-day nullification right if disclosure was deficient, and violations are deceptive acts under IC 24-5-0.5 (AG enforcement). Buyers who intend to take title, record, and hold are exempt - the statute targets assignment-style wholesaling. Marketing the property itself rather than the contract interest remains unlicensed brokerage under IC 25-34.1. |
| Kentucky | Licensing | June 29, 2023 | 2023 Ky. Acts ch. HB 62, amending KRS 324.010 and 324.020 (eff. June 29, 2023); penalties KRS 324.990 | Licensing-based regulation: 'real estate brokerage' now expressly includes advertising for sale an equitable interest in a contract for the purchase of real property - publicly marketing a property (or the contract interest in it) that you do not own requires a Kentucky license. Unlicensed activity: Class A misdemeanor first offense, Class D felony thereafter. Privately assigning a contract to a known buyer without public advertising remains lawful; disclose assignability to the seller and the assignment to the end buyer in writing |
| Maryland | Disclosure | October 1, 2025 | Md. Code, Real Property s.10-715 (HB 124/SB 160, 2025), effective Oct. 1, 2025 | Disclosure regime, not licensing: a wholesale buyer (contracting on owner-occupied 1-4 unit residential with intent to assign for a fee) must disclose in writing to the owner BEFORE contract execution that the contract may be assigned; a wholesale seller must disclose in writing to the assignee before assignment that it holds only equitable interest and may not be able to convey title. Noncompliance gives the owner (or assignee) the right to rescind without penalty before closing with deposits refunded. A licensing bill (HB 301) failed; assignment, double closing, etc. remain legal with disclosure. |
| Missouri | Disclosure + cancellation right (pending) | August 28, 2026 if enacted (SB 973 pending) | new RSMo 407.3600 (SB 973, 2026) - pending governor action until 2026-07-15, effective 2026-08-28 if enacted; previously unregulated (no license required under RSMo ch. 339 when assigning one's own contract) | Disclosure regime, not licensing: 14-day advance standalone boldface disclosure to the record owner, both signatures required before any binding contract, owner cancellation right through close of escrow plus earnest money forfeiture for noncompliance, MMPA penalties, private right of action, AG enforcement. Companion RSMo 442.920 (same bill) regulates residential sale-leasebacks (14-day disclosure, 30-day closing/title-transfer moratorium, $10,000 statutory damages). |
| Nebraska | Licensing | 2022 (LB 892) | Neb. Rev. Stat. 81-885.02 (as amended by LB 892, 2022); NREC policy interpretations | Publicly marketing for sale an equitable interest in a contract for the purchase of real property (other than a vacant lot) between an owner and prospective purchaser is licensed brokerage activity; unlicensed wholesaling (assignments and double closes marketed publicly) is prohibited, with NREC fines up to $1,000 per day or the amount earned, whichever is greater; an equitable interest is not an ownership interest for the owner exemption |
| North Dakota | Licensing + disclosure | August 1, 2023 (updated August 1, 2025) | N.D. Cent. Code 43-23-06.1 (broker definition) and 43-23-24 (wholesaler disclosure); 2023 license-law changes effective Aug 1, 2023; HB 1125 (2025) effective Aug 1, 2025 | Publicly marketing for sale an equitable interest in a purchase contract is licensed brokerage activity with no owner exemption (43-23-07(2)); separately, a wholesaler (anyone contracting to profit from transfer of an equitable interest in real property) must disclose in writing to all parties that it holds only an equitable interest, may not be able to convey title, and intends to profit; on violation the seller may cancel any time before close of escrow and keep the wholesaler's earnest money, and the buyer may cancel with full earnest money refund; HB 1125 (2025) expanded coverage from residential (under 5 units) to all real property |
| Ohio | Disclosure + cancellation right | March 2, 2026 | ORC 5301.95 (SB 155, effective 3-2-2026); ORC 4735.01/4735.02 (license act); ORC 4735.18(40) (licensee discipline) | Disclosure regime, not licensing: wholesaling 1-4 unit residential contracts is legal without a license when acting as principal, but requires the standalone pre-contract boldface disclosure to the record owner with both signatures; noncompliance gives the seller a non-waivable cancellation right until title transfer, 30-day earnest money return, and CSPA liability (AG enforcement, damages, possible treble). Unlicensed wholesalers still may not advertise the property itself - only the contract interest (ORC 4735.02). Licensed agents who wholesale face additional commission discipline under ORC 4735.18(40). |
| Oklahoma | Licensing | November 1, 2021 | Predatory Real Estate Wholesaler Prohibition Act, HB 1148 (2021), amending 59 O.S. § 858-301 (eff. Nov. 1, 2021) | Oklahoma requires a real estate LICENSE to publicly market for sale an equitable interest in a purchase contract - wholesaling by public advertising without an OREC license is unlawful (unlicensed practice); acquiring property for one's own use/investment remains exempt. Strictest regime in this 10-state group; structure OK deals as licensed activity, double closes, or truly private (non-public) dispositions. No repeal or loosening found through mid-2026. |
| Oregon | Registration + disclosure + cancellation right | January 1, 2025 (registration from July 1, 2025) | HB 4058 (2024), Or. Laws 2024 ch. 86, administered by the Oregon Real Estate Agency; effective Jan 1, 2025; registration required from Jul 1, 2025 | Oregon now REGISTERS residential property wholesalers: anyone (other than licensed brokers/principal brokers) marketing residential property while holding only an equitable interest or purchase option for fewer than 90 days with less than $10,000 invested must register with OREA ($300 initial, $300 annual renewal by June 30). Requires written disclosure to all transaction parties and in advertising; both seller and buyer get a non-waivable 3-business-day cancellation right after receiving the disclosure. HB 4058 also bans future-right-to-list agreements. |
| Pennsylvania | Licensing + disclosure + cancellation right | January 2025 statewide (Philadelphia license since 2021) | Statewide: Act 52 of 2024 (Wholesale Real Estate Transaction Transparency and Protection Act), eff. January 2025, amending RELRA (63 P.S. § 455.101 et seq.); Philadelphia: Residential Property Wholesaler license, Phila. Code Title 9, ch. 9-5200 (Bill 210778-A, 2021), $200/yr | PA now regulates wholesaling STATEWIDE: wholesalers fall within expanded broker/salesperson licensing definitions, must give mandated disclosures in the purchase agreement (wholesale intent, right to consult counsel/appraiser, seller 30-day cancellation right, 10-business-day refund), cannot obtain waivers, and face Real Estate Commission civil penalties (up to $1,000 per unlicensed practice violation) with non-compliant contracts freely cancellable before conveyance. Philadelphia separately requires a Residential Property Wholesaler license ($200, insurance certificate, criminal-history check) under Phila. Code ch. 9-5200. |
| South Carolina | Marketing prohibition (licensing) | May 21, 2024 | 2024 Act No. 204 (H.4754), effective May 21, 2024, amending the Real Estate Practice Act: S.C. Code Ann. 40-57-30(44) (definition), 40-57-135 (marketing-a-contract limits), 40-57-350(A) (prohibition); SC REC Advisory Opinion Nov. 14, 2024 | SC expressly prohibits unlicensed 'wholesaling': holding a contractual interest in residential real estate and then MARKETING THE PROPERTY for sale to another buyer before taking legal ownership. Pure assignment of a contractual right is not itself 'wholesaling,' but per the REC's 11/14/2024 advisory opinion, marketing/advertising the property (even just address, photos, beds/baths, neighborhood) plus expected compensation makes the assignment prohibited wholesaling; permissible contract-position marketing must not imply, suggest, or purport to sell the underlying property - which the REC calls practically impossible in normal dispo marketing. Brokers/agents are separately barred from engaging in or assisting wholesaling (40-57-350(A)) |
| Tennessee | Disclosure | March 25, 2025 | 2025 Tenn. Pub. Ch. 72 (SB 909), effective March 25, 2025, amending TCA Titles 47 and 66 (exact codified section not independently verified) | Disclosure regime, not licensing: wholesaler must (1) disclose intent to market/assign its interest to the seller in bold, large-font print in the contract/addendum before signing; (2) give the seller separate written notice of an assignment's effective date at least 3 business days in advance; (3) disclose its equitable-interest (non-owner) status to the end buyer in bold, large-font print before executing the assignment. Private right of action for seller and end buyer; 2-year statute of limitations from the original contract date |
| Texas | Disclosure | January 1, 2024 (owner notice); disclosure duty since 2017 | Tex. Occ. Code § 1101.0045; Tex. Prop. Code § 5.0205 (former § 5.086; redesignated/expanded eff. 1/1/2024) | Disclosure regime, not licensing: unlicensed wholesaler must disclose in writing the nature of the equitable interest to any seller or potential buyer (Occ. Code) and, since 1/1/2024, must also notify the property OWNER of intent to sell the option/assign the contract before contracting (Prop. Code 5.0205). Failure converts the activity into unlicensed brokerage (TREC enforcement, fee disgorgement/DTPA exposure). No prescribed magic words - substance must be in writing before contract. |
| Virginia | Licensing | July 1, 2024 | Va. Code 54.1-2100, as amended by 2024 Va. Acts (HB 917), effective July 1, 2024 | Licensing-based regulation: the 2024 amendment expanded 'real estate broker' to anyone who, for compensation, sells or offers to sell, buys or offers to buy, negotiates, or otherwise deals in real estate contracts, INCLUDING ASSIGNABLE CONTRACTS, on two or more occasions in any 12-month period. Wholesaling contracts more than once in 12 months without a broker's license is unlicensed brokerage; a true one-off assignment falls outside the definition. Double closings (taking title) remain outside the broker definition |
Pending Legislation to Watch
- Missouri SB 973 is awaiting governor action. If enacted, its wholesaler disclosure and cancellation provisions take effect August 28, 2026. Missouri appears in the table above on that basis.
- North Carolina HB 797 is in the Senate. North Carolina currently has no wholesaling-specific statute; that could change this session.
The 32 Jurisdictions With No Wholesaling-Specific Statute
The following states and the District of Columbia have no specific wholesaling statute as of July 2026. General real estate license law, consumer protection law, and standard disclosure duties still apply, and a licensing board can always take the position that public marketing of a contract interest is brokerage. No statute is not a free pass.
Working a wholesale deal? Grab the free contract and disclosure templates, run your numbers with the MAO calculator, or submit a deal under contract to our national buyer network.
Disclaimer: This page summarizes statutes for reference and educational purposes and is not legal advice. Laws change and enforcement positions vary. Confirm the current rule with a licensed attorney in your state before structuring a transaction. Read the full disclaimer.
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