SB 1577 — Effective Jan 1, 2024
Texas
Written disclosures required for assignment deals. Must distinguish contract rights from property ownership in marketing.
Read Texas guideStates are adding disclosure and licensing requirements for wholesale assignment deals. Here is what you need to know to operate legally in each market.
Not legal advice. Deal Run is not a law firm and does not provide legal services. This content is for informational purposes only and should not be relied upon as legal advice. Laws and regulations change frequently. Consult a licensed real estate attorney in your state and contact your local regulatory agency for guidance specific to your transactions.
Wholesaling real estate — assigning purchase contracts or double closing — is a recognized practice in every state. However, a growing number of states are passing laws that regulate how assignment transactions work, and some require licensing or specific disclosures. Most of these new laws specifically target the practice of selling equitable interest — your contract rights — without ever taking title to the property.
The distinction matters. When you assign a contract, you are transferring your position as the buyer to someone else. You never own the property. When you double close, you take title and then resell. That second transaction is treated as a standard sale under existing real estate law.
Understanding which transaction type you are doing — and which state you are doing it in — determines your compliance obligations. For a companion guide covering closing customs, earnest money, title insurance, and who pays for what in each state, see our State-by-State Transaction Guide.
Detailed compliance requirements for states with active wholesaling legislation.
Written disclosures required for assignment deals. Must distinguish contract rights from property ownership in marketing.
Read Texas guideMost prescriptive law in the country. Separate boldface disclosure, 3-day seller cancellation window.
Read Ohio guideDisclosures required on ALL marketing materials for assignment deals. Must disclose assignment fee.
Read Indiana guideMost restrictive state. License required to advertise wholesale deals. Double close or get licensed.
Read Kentucky guideLicensing-first approach. Broker license required for more than one wholesale deal per year. $25,000 civil penalty per transaction plus criminal charges.
Read Illinois guideGREC advertising restrictions plus attorney-closing requirement. GAR F279 disclosure commonly used.
Read Georgia guideLargest wholesaling market with no specific law. Chapter 475 licensing rules and DBPR criminal penalties for unlicensed brokerage.
Read Florida guideBold, large-font disclosures to seller and end buyer. Three-business-day advance notice before assignment. Two-year statute of limitations.
Read Tennessee guideDual disclosure requirements. Seller rescission without penalty if disclosure missing. End buyer deposit refund right. Residential only.
Read Maryland guideDCP registration required. 3-day seller cancellation window. 90-day closing cap. CUTPA enforcement for violations.
Read Connecticut guideResidential-only. Disclosures to both parties. 2-day seller cancellation. Explicitly covers simultaneous double closings.
Read Oklahoma guideLicense required. 30-day seller cancellation period. Class 1 misdemeanor for unlicensed wholesaling. Among the most restrictive.
Read North Carolina guideLicense required. 30-day seller cancellation. Written disclosure of assignment intent and profit. Most comprehensive state law.
Read Pennsylvania guideTwo mandatory written disclosures to sellers. Must disclose non-ownership and assignment intent before contract. Consumer fraud enforcement.
Read Arizona guideAssignment legalized explicitly, but marketing the property triggers brokerage licensing. SCREC enforcement.
Read South Carolina guide$300 OREA registration required. Written seller disclosures. 5-day cancellation window. Registration-based approach.
Read Oregon guideDisclosure-only. Written notice to sellers of non-ownership and assignment intent. No licensing requirement. Lightest regulatory touch.
Read Wisconsin guideNo specific statute yet. Attorney-closing state. NJ Real Estate License Act governs. S3824 pending with disclosure and licensing requirements.
Read New Jersey guideNo wholesaling-specific law. BPC 10131 licensing requirements and DRE enforcement create significant obligations. Largest state market by volume.
Read California guideExpanded 2021 law to all property types. Written seller disclosures required. Licensing exemption for contract assignment without marketing as owner.
Read North Dakota guideLicense-based approach. Marketing contract rights requires a license. Vacant lot exemption. NREC enforcement with civil penalties.
Read Nebraska guideRegardless of whether your state has a specific wholesaling statute, these principles apply everywhere.
The two ways to wholesale a deal — and why the compliance implications are different.
You never take title to the property. You assign your purchase contract to an end buyer, who closes directly with the seller. One closing, lower transaction costs.
Compliance impact: Subject to new state disclosure laws. Most recent wholesaling legislation (TX, OH, IN) specifically regulates this transaction type. You must disclose that you are selling contract rights, not property.
Costs: Minimal — no double closing fees, no transfer tax, no title insurance on your purchase. Your only cost is the assignment fee you earn.
You purchase the property from the seller (A-to-B closing), take title, then immediately resell to your end buyer (B-to-C closing). Two separate transactions, often on the same day.
Compliance impact: Treated as a standard real estate sale. Most new wholesaling laws do not apply because you own the property when you sell it. You are a property owner, not an assignor.
Privacy: Because the two transactions are separate, your profit margin stays private — the spread is not visible on a single settlement statement.
Costs: Higher — roughly 2-3% extra in closing costs, double title insurance, potential transfer taxes, and you need funds (or transactional lending) to close the A-to-B side.
Important timing distinction: One advantage of a double close is that your profit margin stays private — the two transactions are separate and the spread is not visible on a single settlement statement. However, this compliance advantage only applies if you market the property after taking title. In a simultaneous close — where you market while still under contract to purchase — you hold equitable interest only, the same legal position as an assignment. Your disclosure obligations at the time of marketing may be identical regardless of your intended closing structure. Oklahoma's SB 1075 (effective November 2025) explicitly includes simultaneous double closings in its wholesaling definition, and other states are following suit. Structure your compliance around what you hold at the time you market, not what you plan to hold at closing.
Deal Run helps you find buyers, analyze deals, and market properties — with the data you need to stay compliant in every market.
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