Wholesaling in Texas: the rules and the counties
By Josh MillerUpdated 5 min readTexas allows wholesaling without a license if you don't use the contract to broker and you tell buyers in writing that you're selling a contract interest, not the property (Occupations Code 1101.0045). Texas forecloses fast, on the first Tuesday of the month with 21 days' notice, and about 42 of every 100 home sales in our Texas records went off-market, so filing lists like expired listings sell well there.
Texas is one of the best states to wholesale in: big, growing, off-market-heavy, with a clear legal rule. Here's what you need to know before your first contract. This is general information, not legal advice.
The legal rule
Since 2017, Texas has let you sell your interest in a purchase contract without a real estate license, on two conditions: you don't use the contract to engage in brokerage, and you disclose the nature of your equitable interest to any potential buyer (Occupations Code 1101.0045). A companion rule requires that disclosure before you enter a contract with the buyer. Some practitioners report a later change adding disclosure to the seller as well; check the Texas Real Estate Commission's current guidance.
- Only market a house you have under contract.
- Tell every buyer, in writing, that you're selling a contract interest, not the house.
- Executory contracts on a home, like contract-for-deed sales, have their own subchapter of the Property Code with strict requirements. Use an attorney.
The foreclosure calendar
Texas forecloses outside the courts, and fast. Sales happen on the first Tuesday of the month, between 10 a.m. and 4 p.m., with notice posted at the courthouse and filed with the county clerk at least 21 days before (Texas Property Code 51.002). Every investor watching the clerk sees the same notice, and sales are often postponed and re-noticed. Keep writing to those owners after the first date passes.
Where the lists sell
| List | Of every 100, sold | Counties |
|---|---|---|
| Listing expired or cancelled | 11.6 | 55 |
| Foreclosure filed | 7.4 | 3 |
| Lien filed against the property | 7.1 | 23 |
| Sitting vacant | 3.5 | 43 |
| Owns it free and clear | 1.3 | 154 |
Source: GoForClose count of off-market, arm's-length deeds in county records. About 42 of every 100 home sales in our Texas records went off-market.
The counties differ: expired listings sold at about 15 per 100 in Harris County and 8 in Denton County; liens at about 10 in Dallas County and 4 in Collin County.
Questions investors ask
Is wholesaling legal in Texas?
Yes. Texas lets you sell your interest in a purchase contract without a license, as long as you don't use it to engage in brokerage and you disclose to buyers in writing that you're selling a contract interest (Occupations Code 1101.0045).
Do I need a license to wholesale in Texas?
Not if you follow the disclosure rule and only sell your own contract interest. Marketing a property you don't have under contract, or acting for someone else, is brokerage.
When are foreclosure sales in Texas?
The first Tuesday of the month, between 10 a.m. and 4 p.m., at the county courthouse, with notice filed at least 21 days before (Texas Property Code 51.002).
What is the best list for wholesaling in Texas?
Expired and cancelled listings: across 55 Texas counties, about 12 of every 100 sold off-market within 12 months. Liens came next at about 7 per 100 across 23 counties.