Wholesaling rules, state by state
Wholesaling law is changing fast — some states now require specific written disclosures to the seller, some restrict how you market a contract, and a few require a license. This is a plain-language guide to where things stand, covering 12 states (12 with an enacted law addressing wholesaling).
Each state shows the date it was last reviewed against its source. Most recent review: July 24, 2026.
This is not legal advice.
Wholesaling and real-estate law varies by state and changes often. Confirm your state's current requirements with a licensed real-estate attorney before you rely on any of this in a live deal.
How DispoStack keeps your outreach compliant
Carrier-registered texting, consent and opt-out handling, quiet hours, and isolated data — see our Trust & Compliance overview.
What (almost) every state shares
Disclose that you're assigning a contract
Across states, the safest practice is to tell the seller in writing that you hold an equitable interest and intend to assign the purchase contract to an end buyer for a fee — not that you are the end buyer.
Don't market a property you don't own
Advertising the property itself for sale (rather than your contractual rights) is where many states draw the line between wholesaling and unlicensed brokerage. Market the contract, not the house.
Be transparent about your fee
A disclosed assignment fee is generally cleaner than a hidden markup. Several states now require the fee or your position to be disclosed in writing.
Know your transaction type
An assignment transfers your contract to an end buyer; a double close is two separate transactions. Some state rules apply differently to each — pick the structure deliberately.
Assignment vs. double close
| Assignment | Double close | |
|---|---|---|
| What transfers | Your rights under the purchase contract move to the end buyer. | You buy from the seller, then separately sell to the end buyer. |
| Your fee | A disclosed assignment fee, often shown on the settlement statement. | The spread between your buy price and your sell price. |
| Common compliance question | Was your position/fee disclosed, and did you avoid marketing the property as owner? | Did you actually take title (even briefly) and fund both closings properly? |
State guides
Alabama
Law addressing wholesaling in effect
Alabama's SB 228 (2023) requires a buyer who takes an equitable interest in single-family residential property to make written disclosures before marketing or assigning it. No license is required, but a violation is a misdemeanor and can carry treble damages.
Reviewed July 24, 2026
Connecticut
Law addressing wholesaling in effect
Connecticut's Public Act 25-168 (HB 7287) created a new chapter requiring real estate wholesalers to register with the Department of Consumer Protection and give sellers a written disclosure report, plus a 3-day cancellation right and a 90-day closing cap.
Reviewed July 24, 2026
Illinois
Law addressing wholesaling in effect
Illinois' Real Estate License Act (225 ILCS 454) folds dealing in assignable real-estate contracts into the definition of a "broker." Once wholesaling becomes a "pattern of business," a license is required.
Reviewed July 24, 2026
Indiana
Law addressing wholesaling in effect
Indiana's House Enrolled Act 1068 (2024), at IC 32-21-16.5, requires unlicensed solicitors/wholesalers to state on every solicitation that it is not from a licensed real estate professional and to disclose their name; non-disclosure is a deceptive act.
Reviewed July 24, 2026
Kentucky
Law addressing wholesaling in effect
Kentucky's HB 62 (2023) amended the KRS Chapter 324 brokerage definitions so that advertising an equitable interest in a purchase contract is real-estate brokerage — effectively requiring a license to publicly market a wholesale (assignment) deal.
Reviewed July 24, 2026
Maryland
Law addressing wholesaling in effect
Maryland's HB 124 (Ch. 508) and SB 160 (Ch. 509) require wholesale buyers and sellers of owner-occupied residential property to give written assignment disclosures; owners and assignees may rescind without penalty (with a deposit refund) if disclosure isn't made.
Reviewed July 24, 2026
North Dakota
Law addressing wholesaling in effect
North Dakota's HB 1125 (2025) amended its real-estate licensing chapter so the wholesaler disclosure duty now covers all real property (not just residential), and made publicly marketing an equitable interest in a purchase contract a licensed brokerage activity.
Reviewed July 24, 2026
Ohio
Law addressing wholesaling in effect
Ohio Senate Bill 155 enacts Revised Code §5301.95 and amends the real-estate license law (R.C. 4735.18/4735.24), creating a statutory wholesaling framework with a mandatory written disclosure to the homeowner. Effective March 2, 2026.
Reviewed July 24, 2026
Oklahoma
Law addressing wholesaling in effect
Oklahoma's Predatory Real Estate Wholesaler Prohibition Act (effective Nov 1, 2021) requires wholesalers to hold a real estate license. A 2025 amendment adds homeowner disclosures and a two-business-day right to cancel.
Reviewed July 24, 2026
Pennsylvania
Law addressing wholesaling in effect
Act 52 of 2024 amended Pennsylvania's Real Estate Licensing and Registration Act to cover "wholesale transactions": someone engaging in one acts as a broker/salesperson and must be licensed, and the consumer gets mandatory contract disclosures plus a right to cancel.
Reviewed July 24, 2026
South Carolina
Law addressing wholesaling in effect
South Carolina's revised Real Estate Practice Act (S.C. Code §40-57-5 et seq.) prohibits "wholesaling" as defined at §40-57-30(44): marketing a property you have under contract but don't yet own, for compensation, is treated as unlicensed brokerage. Often called the closest thing to an outright ban.
Reviewed July 24, 2026
Tennessee
Law addressing wholesaling in effect
Tennessee's SB 909 (2025) added a new part to Title 66 defining wholesaling and requiring a wholesaling buyer to make bold, written disclosures to the seller and any later purchaser. No license is required; claims must be brought within two years.
Reviewed July 24, 2026
Ready to close more off-market deals?
Start your 7-day free trial — no credit card. Join investors using DispoStack to automate their acquisition and disposition pipeline.
No credit card required · Cancel anytime