Is Wholesaling Real Estate Legal? A State-by-State Guide
Short answer: yes, in every state. The rules for how you do it change at the state line. Find your state, see what it asks of you, and click through to the official source.
Yes. Wholesaling real estate is legal in all 50 states and DC, and no state bans it. What changes is how you do it. In 8 states, some wholesaling needs a real estate license, and 2 more require registration. Another 12 require written disclosures. Find your state below and follow its rules. That's how you lower your risk. Current at the time of publishing. I'm not an attorney, so always check your state and local licensing rules before your first deal.
- States that ban it
- None
- License can be required
- 8 states
- Registration required
- 2 states
- Disclosure rules
- 12 states
- Passed, not in effect yet
- Rhode Island, plus a Delaware license rule
- No wholesaling-specific law
- 27 states and DC
What "legal" means for a wholesaler
Wholesaling means you sign a contract to buy a house, then sell your spot in that contract to another buyer for a fee. Some wholesalers buy and resell the same day instead (a double close). Either way, you're a buyer selling your own contract interest. That part is legal everywhere.
Trouble starts when you act like an agent without a license: marketing a house you don't own as if it's yours, or doing enough deals that your state treats you as a broker. Every state draws that line a little differently. That's why your state matters.
Some states say certain wholesaling counts as broker work, so you need a real estate license (or a licensed broker on your side).
Oregon and Connecticut want you registered with a state agency before you wholesale.
Many newer laws make you tell the seller, in writing, that you may assign the contract. Some give sellers days to back out.
Calling, texting and mailing sellers has its own rules, from federal Do Not Call rules to state mail notices.
Wholesaling laws by state
Type your state or tap a status to filter. Each source link opens the official law, bill or agency page in a new tab.
Showing 51 of 51
| State | Status | What it means for you | Official source |
|---|---|---|---|
| Alabama | Disclosure rules | Give the seller and your assignee written disclosures, including 3 business days' notice before an assignment takes effect. | Ala. Code 8-42 (SB 228) ↗ |
| Alaska | No wholesaling-specific statute found | General real estate license law applies (AS 08.88). Market your contract, not the house. | AS 08.88 ↗ |
| Arizona | Disclosure rules | Wholesale buyers and sellers must disclose in writing before a binding agreement. That law has no license or registration rule. | A.R.S. 44-5101 ↗ |
| Arkansas | No wholesaling-specific statute found | No wholesaling law, but the state's real estate regulator has warned that unlicensed wholesaling can break license law. Act as a principal. | Regulator newsletter ↗ |
| California | No wholesaling-specific statute found | No wholesaling law in effect. A bill to require a license and a no-title disclosure died, so watch for a new one. | AB 1850 status ↗ |
| Colorado | No wholesaling-specific statute found | No wholesaling law. A state advisory urges telling homeowners you may assign the contract and plan to profit. | State advisory ↗ |
| Connecticut | Registration required | Register with the Department of Consumer Protection. Sellers get 3 business days to review and cancel, and you owe a written disclosure report. | Ch. 392a ↗ |
| Delaware | Disclosure rules | Seller disclosures and a 21-day cancellation right apply now. A license rule for wholesaling as a business has passed but starts later. | SB 201 ↗ |
| District of Columbia | No wholesaling-specific statute found | The DC Real Estate Commission has said no statute or regulation covers wholesaling right now. General license law still applies. | DC Real Estate Commission ↗ |
| Florida | No wholesaling-specific statute found | No wholesaling law. It's unsettled whether a contract-only interest counts as "your own" property under license law, so market your contract, not the house. Homes in foreclosure carry extra equity-purchase rules. | Fla. Stat. 475.01 ↗Fla. Stat. 501.1377 ↗ |
| Georgia | No wholesaling-specific statute foundOutreach rule applies | No wholesaling law, but unsolicited written offers from unlicensed buyers must carry the state's "SOLICITATION" notices. | O.C.G.A. 10-1-393.19 (SB 90) ↗ |
| Hawaii | No wholesaling-specific statute found | General real estate license law applies (HRS ch. 467). | Real estate regulator bulletin ↗ |
| Idaho | No wholesaling-specific statute found | General real estate license law applies (Idaho Code ch. 54-20). | Idaho Code 54-20 ↗ |
| Illinois | License can be required | Two or more deals in any 12 months counts as broker activity, so you need a license. | 225 ILCS 454/1-10 ↗P.A. 101-0357 ↗ |
| Indiana | Disclosure rules | Unlicensed solicitors must state "This solicitation is not from a licensed real estate professional" and give their legal name. | HEA 1068 ↗ |
| Iowa | License can be required | To wholesale 1 to 4 unit homes you need a broker license or a licensed broker representing you, plus written disclosures to all parties. | Iowa Code 543B.6A ↗ |
| Kansas | No wholesaling-specific statute found | No wholesaling law. Earlier bills didn't pass. | HB 2598 ↗ |
| Kentucky | License can be required | Advertising your contract interest for sale requires a license (KRS 324.020(1)(b)). | KRS 324.020 ↗ |
| Louisiana | Disclosure rules | Written disclosures, a seller cancellation right of at least 5 days and a 1% escrowed deposit. That law doesn't require a license. | HB 468 (Act 807) ↗ |
| Maine | No wholesaling-specific statute found | General real estate license law applies (32 M.R.S. ch. 114). | 32 M.R.S. ch. 114 ↗ |
| Maryland | Disclosure rules | For owner-occupied homes, tell the owner in writing that you may assign, and tell your assignee you hold only an equitable interest. | Real Prop. 10-715 (ch. 508) ↗ |
| Massachusetts | No wholesaling-specific statute found | General real estate license law applies. | M.G.L. c. 112 s. 87PP ↗ |
| Michigan | No wholesaling-specific statute found | No wholesaling law in effect. A bill for a license and disclosures (HB 5366) is in committee. | HB 5366 ↗ |
| Minnesota | No wholesaling-specific statute found | No wholesaling law, but a general rule presumes you need a license after 5 or more deals as a principal in 12 months, unless a licensee represents you. | Minn. Stat. 82.55 ↗ |
| Mississippi | No wholesaling-specific statute found | No wholesaling law in effect. A licensing bill (HB 1682) died in committee. | HB 1682 text ↗ |
| Missouri | Disclosure rules | Give the owner a signed state disclosure at least 14 days before you sign a contract. | RSMo 407.3600 ↗ |
| Montana | No wholesaling-specific statute found | General real estate license law applies (MCA 37-51). | MCA 37-51 ↗ |
| Nebraska | License can be required | Publicly marketing your contract interest (other than a vacant lot) requires a license. | Neb. Rev. Stat. 81-885.02 ↗ |
| Nevada | No wholesaling-specific statute found | General real estate license law applies (NRS 645). | NRS 645 ↗ |
| New Hampshire | No wholesaling-specific statute found | General real estate license law applies (RSA 331-A). | RSA 331-A:2 ↗ |
| New Jersey | No wholesaling-specific statute found | No wholesaling law in effect. A bill for a license and cancellation rights (A4278) is in committee. | A4278 ↗ |
| New Mexico | No wholesaling-specific statute found | General real estate license law applies (NMSA 61-29). | State rule book ↗ |
| New York | No wholesaling-specific statute foundOutreach rule applies | No state wholesaling law. In New York City, unsolicited offers on 1 to 3 family homes must show the city's market value and the right to an appraisal. | N.Y. RPL 440 ↗ |
| North Carolina | No wholesaling-specific statute found | No wholesaling law in effect. A bill to require a license (H797) passed the House and sits in the Senate. | H797 ↗ |
| North Dakota | Disclosure rules | Disclose in writing to all parties that you hold an equitable interest, may not be able to convey title and plan to profit. | N.D.C.C. 43-23-24 ↗ |
| Ohio | Disclosure rules | Give the owner a signed state disclosure in bold type before you sign a contract. Columbus also has a wholesaler registry. | SB 155 (R.C. 5301.95) ↗ |
| Oklahoma | License can be required | Publicly marketing your contract needs a license. You also owe written disclosures, and sellers get 2 business days to cancel. | SB 1075 ↗HB 1148 ↗ |
| Oregon | Registration required | Register with the Real Estate Agency (or hold a license), give written disclosures and honor a 3-business-day cancellation right. | ORS 696.650 to .670 ↗ |
| Pennsylvania | License can be required | Wholesale deals on 1 to 4 unit homes count as broker activity, so you need a license, and consumers get a 30-day right to cancel. Philadelphia adds a city license. | Act 52 ↗ |
| Rhode Island | New law, not in effect yet | A new law will require a license for more than one deal in 12 months, plus written disclosures and a 3-business-day cancellation period. It isn't in effect yet. | New law ↗ |
| South Carolina | License can be required | Marketing the property before you own it requires a license, and brokerage firms can't wholesale. Assigning a contract by itself isn't "wholesaling" under the statute. | S.C. Code 40-57 ↗ |
| South Dakota | No wholesaling-specific statute found | General real estate license law applies (SDCL 36-21A). | SDCL 36-21A ↗ |
| Tennessee | Disclosure rules | Give the seller and your assignee bold, large-print written disclosures, including 3 business days' notice before an assignment. | Pub. Ch. 72 ↗ |
| Texas | Disclosure rules | You can sell or assign a contract without a license only if you disclose your equitable interest in writing and don't use the contract to broker. | SB 1577 ↗ |
| Utah | No wholesaling-specific statute found | No wholesaling law. The state's real estate division says assigning isn't unlawful by itself, but brokering without a license is a concern. | State newsletter ↗ |
| Vermont | No wholesaling-specific statute found | General real estate license law applies (26 V.S.A. ch. 41). | 26 V.S.A. ch. 41 ↗ |
| Virginia | License can be required | Two or more deals in any 12 months requires a broker license. | Va. Code 54.1-2100 ↗ |
| Washington | No wholesaling-specific statute foundOutreach rule applies | No wholesaling law, but owners of solicited, unlisted homes get appraisal and cancellation rights. Seattle adds its own rules. | SHB 1081 ↗ |
| West Virginia | No wholesaling-specific statute found | No wholesaling law in effect. A bill to ban wholesaling (HB 4493) died in committee. | HB 4493 status ↗ |
| Wisconsin | Disclosure rules | Give written wholesaler notice to the seller and your assignee. Skip it and the seller can rescind. | Wis. Stat. 710.13 ↗ |
| Wyoming | No wholesaling-specific statute found | General real estate license law applies (W.S. 33-28). | W.S. title 33 ↗ |
No state matches that search. Try the full name, like "New Mexico".
"No wholesaling-specific statute found" means a search of that state's legislature and licensing agency found no law aimed at wholesaling. General real estate license law still applies in every state, so market your contract (not the house), act as a principal and put your plans in writing.
This table is my reading of each state's law, and laws change when bills pass. Use it to know where to look, then read the current rule at the source. Not legal advice. Confirm with a licensed attorney in your state.
City rules that catch wholesalers
State law isn't the whole picture. These local and outreach rules apply even in states with no wholesaling law.
- Philadelphia: a city wholesaler license and a Do Not Solicit list, on top of Pennsylvania's license rule (city law ↗).
- Columbus, Ohio: register with the city before you wholesale there (city law ↗).
- New York City: unsolicited offers on 1 to 3 family homes must show the city's market value and the right to an appraisal (city law ↗).
- Seattle: if you solicit an unlisted home, give the owner a written notice at least 5 business days before you sign, covering fair value and their right to an appraisal (city law ↗). A Do Not Solicit list has passed and starts later.
- Atlanta: repeated contact after an owner tells you to stop can count as harassment under city code (city code ↗).
This list isn't complete. Cities add rules faster than states do, so check the local code before you mail or call a new area.
Do you need a license to wholesale?
In most states, no. In the 8 states marked "License can be required" above, certain deals or marketing can need a real estate license. Rhode Island and Delaware have license rules on the way.
What triggers a license, the exceptions, and the checklist I'd run before a first deal are all in Lesson 2: Is wholesaling real estate legal?. Start there if your state is one of the 8.
Federal rules for calling, texting and FHA buyers
These apply in every state, on top of your state's rules. It isn't fully settled whether all of them reach calls offering to buy a house, so careful wholesalers follow them anyway. That lowers your risk everywhere.
- Calling hours and Do Not Call. FCC rules bar telephone solicitations before 8 a.m. or after 9 p.m. (the other person's time) and to numbers on the National Do Not Call Registry (47 CFR 64.1200 ↗). Scrub your lists before you dial.
- Autodialers, recorded and AI voices. Calls to cell phones that use an autodialer or an artificial or prerecorded voice need the person's prior consent, and written consent when the call is telemarketing (same rule). The FCC says AI-generated voices count as artificial (FCC ruling ↗).
- Stop means stop. People can revoke consent any reasonable way, including replying "stop" to a text (same rule). Honor it right away.
- FTC Do Not Call. The FTC's Telemarketing Sales Rule also limits calls to numbers on the registry (16 CFR 310 ↗). Whether it covers a buyer calling to buy a house is unclear, so scrub anyway.
- FHA end buyers. FHA wants the seller to be the owner of record, with no assignment of the sales contract, and a resale 90 days or less after the seller bought isn't eligible, with limited exceptions (24 CFR 203.37a ↗). If your buyer needs an FHA loan, a quick assignment or double close usually won't work.
If you pull lists and skip trace with a tool, pick one that helps you scrub Do Not Call numbers. I cover how that works in my DealMachine review.
Put your state's rules into your contract
In disclosure states, the rule usually lives in your contract: a notice that you may assign, a cancellation clause, the exact state wording, sometimes a set type size. A generic contract from another state can miss all of it.
Start with my wholesale real estate contracts guide, then add your state's wording from the source link in the table. Have a local real estate attorney look it over before your first deal.
What the law says if you cross the line
Most wholesaling laws are about fairness to sellers, and most remedies hit the deal in front of you. When a required disclosure is missing, several states let the seller cancel, and some let them keep your earnest money.
Some states add fines, and a few treat violations as unfair or deceptive trade practices. Wholesaling without a license where one is required falls under that state's license law. Following your state's rules is how careful wholesalers lower these risks.
Where these answers come from
Each row comes from the state's own legislature, code or licensing agency site, and every source link goes to that official page. Where the official site couldn't be read, or a status rests on an outside tracker, I treat the row as less certain and lean on the source link.
I re-check the states with new or pending laws when bills move. If you spot a change before I do, the source link is the final word.
Wholesaling laws FAQ
Is wholesaling real estate legal?
Yes. Wholesaling is legal in all 50 states and DC, and no state bans it. What changes is how you do it: 8 states can require a license for some wholesaling, 2 require registration and 12 more require written disclosures. Check your state's row above before your first contract.
What states is wholesaling illegal in?
None. No state bans wholesaling. West Virginia's proposed Abolishment of Wholesaling Act died in committee without becoming law. In some states, though, doing it without a license or registration can break the rules, so read your state's row.
Which states require a license to wholesale?
Pennsylvania, Iowa, Illinois, Virginia, Kentucky, Nebraska, Oklahoma and South Carolina, each with its own trigger, like a deal count or public marketing. Rhode Island and Delaware have license rules that start later. Lesson 2 walks through the triggers.
Which states require wholesalers to register?
Oregon and Connecticut. Oregon registers wholesalers through its Real Estate Agency, and Connecticut through its Department of Consumer Protection. Both also require written disclosures and give sellers 3 business days to cancel.
Do I have to tell the seller I might assign the contract?
In 12 states, a written disclosure is required, and the timing and wording are set by law. In the rest, no wholesaling law requires it, but telling the seller in writing is how careful wholesalers handle it everywhere. It lowers your risk.
Can I wholesale in a state with no wholesaling law?
Yes. General real estate license law still applies, so act as a principal buyer, market your contract instead of the house, and put your plans in writing. Check city rules and the federal calling rules too.
Can my end buyer use an FHA loan on a wholesale deal?
Usually not. FHA wants the seller to be the owner of record with no contract assignment, and a resale 90 days or less after the seller bought isn't eligible, with limited exceptions. Cash buyers and other loan types are the usual fit.
Are more wholesaling laws coming?
Yes. Bills are pending in Michigan, New Jersey, North Carolina and Pennsylvania, and Rhode Island's new law isn't in effect yet. States have added wholesaling rules quickly, so check the source link for your state before each new market.
Next: do you need a license to wholesale?
Lesson 2 of Wholesaling University covers license triggers, exceptions and the checklist I'd run before a first deal.
Not legal advice. Confirm with a licensed attorney in your state. I'm a real estate investor, not an attorney or financial advisor. This guide is current at the time of publishing, but wholesaling laws vary by state and city and change often, so read the current rule at the source before you market a property or make offers.