Is wholesaling legal in my state?
By Josh MillerUpdated 6 min readWholesaling is legal in every state, but a growing number regulate it: Illinois, Virginia, Pennsylvania and Delaware treat repeat or ongoing wholesaling as brokerage that needs a license, Connecticut requires registration from July 1, 2026, and Texas, Oklahoma, Maryland, Ohio and Tennessee require written disclosures, some with a seller cancellation right. Check your state's statute or real estate commission before your next contract, because these laws changed fast in 2024 and 2025.
Wholesaling, putting a house under contract and assigning that contract to another buyer for a fee, is legal in every state. But since 2019, and especially in 2024 and 2025, states have been writing rules for it. Some now require a license, some a registration, and many require written disclosures to the seller.
Here's where things stood when we checked on October 20, 2026. This list comes from state-law trackers that cite each statute, plus the statute text where we could read it. Laws change; confirm with your state's real estate commission or an attorney before relying on it. This is not legal advice.
States that require a license or registration
| State | The rule | Law | In effect |
|---|---|---|---|
| Illinois | Two or more wholesale deals in any 12 months is brokerage; needs a license | 225 ILCS 454/1-10 (Public Act 101-0357) | Since 2019 |
| Virginia | Dealing in assignable contracts two or more times in 12 months for pay needs a license | Va. Code 54.1-2100 (HB 917, 2024) | 2024 |
| Pennsylvania | Covered wholesale deals need a license, with required seller statements and a cancellation right | Act 52 of 2024 (SB 1173) | Reported January 2025 |
| Delaware | Those in the business of residential wholesaling need a license | SB 201 (2024) | Check the transition date |
| Connecticut | Registration with the Department of Consumer Protection, seller disclosures, 3-business-day cancellation | Public Act 25-168 (2025) | July 1, 2026 |
| South Carolina | Marketing a home you don't own is brokerage; assigning the contract itself is excluded | Act 204 of 2024 | 2024 |
States that require written disclosures
| State | The rule | Law | In effect |
|---|---|---|---|
| Texas | Disclose in writing to any buyer that you're selling a contract interest, not the property | Occupations Code 1101.0045 | Since 2017 |
| Tennessee | Disclose the equitable interest in bold, large type in the agreement; 3 business days' notice to the seller before assigning | Public Chapter 72 (SB 909, 2025) | March 25, 2025 |
| Maryland | Written disclosure to the seller of intent to assign; seller can rescind if not given | Real Property 10-715 (HB 124) | October 1, 2025 |
| Oklahoma | Written disclosure of intent to assign, a notice to seek legal advice, and a 2-day cancellation right | 59 O.S. 858-314 (SB 1075) | November 1, 2025 |
| Ohio | A separate, bold, signed wholesaler disclosure to the owner of a 1 to 4 unit home before a binding contract | Ohio Revised Code 5301.95 (SB 155) | March 2, 2026 |
Philadelphia also requires its own wholesaler license on top of Pennsylvania's rules. Other cities may follow.
Pending: North Carolina
A 2025 bill, HB 797, would make residential wholesaling licensed broker activity with a 30-day homeowner cancellation right. It passed the House 103 to 0, and as of the trackers' last check it hadn't been enacted. Watch the General Assembly.
What's true in every state
- You can't act as an unlicensed agent. Marketing someone else's house, or taking a fee to find a buyer, is brokerage almost everywhere. What you sell is your contract.
- Tell the seller what you're doing. Even where it isn't required, a seller who learns at closing that you assigned the contract for a fee feels deceived. Several of the new laws were written after exactly that.
- Use an attorney's contract for your state, with an assignment clause the seller understands.
The disclosure is good business anyway
The new laws mostly require what honest wholesalers already do: tell the seller you may assign the contract, give them time to change their mind, and close when you said you would. A seller who understood the deal sends you referrals. One who felt tricked files the complaint that becomes the next state's law.
Questions investors ask
Is wholesaling real estate legal?
Yes, in every state, as long as you follow that state's rules. Some states now require a license, a registration, or written disclosures to the seller or buyer.
Which states require a license to wholesale?
As reported by state-law trackers citing each statute: Illinois and Virginia (two or more deals in 12 months), Pennsylvania (Act 52 of 2024) and Delaware (for those in the business of residential wholesaling). South Carolina treats marketing a house you don't own as brokerage.
Do I have to tell the seller I'm wholesaling?
In a growing list of states, yes, in writing: Oklahoma, Maryland, Ohio, Tennessee and Connecticut among them, several with a cancellation window for the seller. It's good practice everywhere.
Is wholesaling legal in North Carolina?
Yes, as of October 2026. A 2025 bill that would have made residential wholesaling licensed activity passed the House but, per state-law trackers, hadn't been enacted. Check the General Assembly for its status.