Kentucky Wholesaling Laws: HB 62 Compliance Guide

Kentucky House Bill 62, effective 2023, and subsequent guidance from the Kentucky Real Estate Commission (KREC) made Kentucky the most restrictive state in the country for wholesale real estate marketing. The core issue is straightforward: KREC interprets advertising a property you hold under contract but do not own as real estate brokerage activity. Brokerage activity requires a license.

Contract assignments have not been banned outright in Kentucky. However, Kentucky has added significant restrictions that make it the most challenging state for unlicensed wholesalers. If you plan to publicly market assignment deals, you effectively need a real estate license, a licensed partner, or a double-close strategy. Here is what HB 62 requires, what KREC considers advertising, and what your practical options are for operating compliantly.

What HB 62 changed

House Bill 62 amended Kentucky's real estate licensing statutes (KRS Chapter 324) during the 2023 legislative session. The bill itself did not create an entirely new framework for wholesaling. Instead, it clarified the scope of activities that require a real estate license, and KREC issued formal guidance that applied those clarifications directly to wholesale assignment transactions.

The KREC guidance, published June 15, 2023, states that advertising a property you hold under contract but do not own constitutes real estate brokerage activity under Kentucky law. The guidance specifically addresses the practice of marketing equitable interest — your contract rights — to potential buyers. In KREC's interpretation, this is functionally the same as listing a property for sale, which is a licensable activity.

You can read the full KREC guidance document here: KREC Guidance on HB 62 (PDF)

Before HB 62, the line between wholesaling and brokering in Kentucky was interpreted more loosely, similar to most other states. The combination of the statutory amendment and KREC's guidance removed that ambiguity. Kentucky now has the clearest and most restrictive position on wholesale marketing of any state.

The license requirement

The key rule is this: you need a Kentucky real estate license to publicly advertise or market a property you hold under contract but do not own. This targets assignment transactions where you are marketing your equitable interest (contract rights) to potential end buyers.

What counts as "advertising" under KREC's interpretation:

• Email blasts to buyer lists. Sending deal details to your investor database, even if it is a private list you built yourself, is advertising. You are soliciting buyers for a property you do not own.
• Social media posts. Facebook, Instagram, BiggerPockets, investor groups — any public or semi-public post marketing a deal you have under contract.
• Posting on investor platforms. InvestorLift, Deal Run, Craigslist, any marketplace where you are offering a wholesale deal or assignment opportunity.
• Marketing materials. Flyers, deal packages, PDFs, one-pagers, any document designed to market the property to potential buyers.
• Website listings. Posting a deal on your own website or a third-party site.
• Any public solicitation. Bandit signs, direct mail to buyers, text messages, or any other outreach designed to find an end buyer for a property you have under contract.

The scope is broad. KREC's position is not limited to mass-market advertising. It covers essentially any effort to find a buyer for a property you do not own, regardless of the channel or audience size.

Assignment vs double close in Kentucky

Understanding the distinction between assignment and double close is critical in Kentucky because the compliance implications are fundamentally different.

Assignment with public marketing

This is what HB 62 and KREC guidance specifically target. If you have a property under contract and you publicly market it to find an end buyer, you are engaging in brokerage activity under Kentucky law. This requires a real estate license. Without a license, this activity is illegal. It does not matter that you have equitable interest through your purchase contract. The act of publicly soliciting buyers for a property you do not own is what triggers the requirement.

Assignment without public marketing

Technically possible. If you find a buyer through your personal network, a direct one-on-one conversation, or a pre-existing relationship — without any form of public advertising — you may be able to assign your contract without triggering the licensing requirement. However, this approach is severely limited in reach. You are essentially restricted to buyers you already know. KREC may still scrutinize these transactions, particularly if there is a pattern suggesting that your "private" deal sharing is functionally the same as advertising. This is a narrow path with real enforcement risk.

Double close

You buy the property, take title, and then resell it. When you market the property for resale, you are the owner. Marketing your own property does not require a real estate license. This is a standard real estate sale under existing Kentucky law, and HB 62 does not apply. For unlicensed wholesalers in Kentucky, the double close may be the only practical path for publicly marketing deals.

The tradeoff: double closing involves additional costs. You need the funds (or transactional lending) to close the purchase, you pay two sets of closing costs, and you assume the risk of owning the property during the resale period. But you are fully compliant, and you can market the property through any channel you choose.

Bottom line

Kentucky effectively requires a license, a licensed partner, or a double close to publicly market wholesale deals. Assignment without any marketing is theoretically legal but practically limited. If you wholesale in Kentucky with any regularity, you need one of the three compliant paths.

Exemptions

The licensing requirement under HB 62 and KREC guidance has limited exemptions. Understanding what is and is not exempt helps you evaluate which approach fits your situation.

• Selling your own property. If you took title — meaning you completed a purchase and are now the legal owner — you can market and sell the property without a license. This is the double close path. You own it, you sell it, standard rules apply.
• One-off personal transactions. Kentucky law, like most states, recognizes that individuals selling their own property do not need a license. However, KREC may not extend this exemption to a pattern of repeated assignment transactions. Do not rely on a "personal transaction" exemption if you are operating a wholesale business.
• Licensed real estate agents and brokers. If you hold an active Kentucky real estate license, you can advertise assignment deals. The license requirement is the restriction, and having the license removes it.

There is no exemption for "small volume" or "occasional" wholesaling. Unlike Illinois, which set a threshold of one assignment per year before requiring a license, Kentucky's KREC guidance does not include any volume-based exemption. Even a single publicly marketed assignment can trigger enforcement.

Penalties

Operating without proper compliance in Kentucky carries real consequences. KREC has enforcement authority, and violations of the licensing statutes are taken seriously.

• Unlicensed real estate activity. KREC can pursue enforcement actions against individuals who engage in brokerage activity without a license. This includes cease-and-desist orders directing you to stop all marketing activity immediately.
• Fines. Kentucky imposes fines for unlicensed real estate activity. The amounts vary based on the nature and scope of the violations, but they can be significant for repeat offenders or large-scale operations.
• Criminal penalties. Repeated or willful violations of Kentucky's licensing laws can result in criminal charges. Unlicensed brokerage is a misdemeanor under KRS 324.990, carrying potential jail time and additional fines.
• Contract enforceability challenges. Contracts facilitated through unlicensed activity may be challenged in court. If a buyer or seller discovers that the wholesaler was operating illegally, they may have grounds to void the contract or seek damages. This can unwind closed deals and create civil liability.
• Title company refusal. Kentucky title companies are aware of HB 62. Many will refuse to close assignment transactions where the wholesaler does not hold a license, particularly if there is evidence of public marketing. This is a practical enforcement mechanism that exists independently of KREC action.

Practical options for wholesalers in Kentucky

If you wholesale in Kentucky or plan to, you have four realistic paths to compliance. Each has tradeoffs in cost, scalability, and flexibility.

1. Get your Kentucky real estate license. This is the most sustainable option if you wholesale in Kentucky regularly. A Kentucky real estate license requires pre-licensing education (96 hours for salesperson, 48 hours for broker), passing the state exam, and affiliating with a licensed broker. Total cost is typically $1,500–$3,000 for education and testing, plus annual renewal fees. The license eliminates all ambiguity around your marketing activity. You can advertise, email blast, post on platforms, and operate exactly like wholesalers in less restrictive states. If Kentucky is a core market for you, this is the path that makes the most business sense.
2. Partner with a licensed agent or broker. If you do not want to get licensed yourself, you can work with a Kentucky-licensed real estate agent or broker who handles the marketing side of your deals. The licensed partner advertises the property, communicates with potential buyers, and facilitates the transaction. You handle acquisition (getting properties under contract) and the licensed partner handles disposition (finding the end buyer). This adds a cost — typically a commission or fee split — but keeps you compliant. It also gives you access to MLS and other marketing channels through the licensed partner.
3. Double close every deal. Take title first, then sell as the property owner. This is the most common approach for unlicensed wholesalers operating in Kentucky. When you own the property, marketing it for sale is a standard transaction that does not require a license. The added costs include transactional lending fees (if you need funding to close the purchase), two sets of closing costs, transfer taxes, and the carrying risk during the resale period. For deals with healthy margins, these costs are manageable. For thin deals, the extra expenses can eat into your profit significantly.
4. Limit to private, non-public deal sharing. Find buyers through direct relationships without any public advertising. This is the riskiest option because the line between private networking and public advertising is subjective. KREC has not published clear guidance on what constitutes "private" versus "public" in this context. If you are relying on this approach, keep meticulous records of how each buyer relationship originated, and understand that KREC may challenge your characterization. This is not recommended as a primary strategy.

Frequently asked questions

Can I wholesale in Kentucky without a license?

You can assign a contract, but you cannot publicly advertise or market a property you do not own without a Kentucky real estate license. KREC's guidance on HB 62 is explicit on this point. If you want to wholesale without a license, your practical options are double closing (where you take title before marketing) or finding buyers through strictly private, non-public channels. For most wholesalers operating at any volume, getting licensed or partnering with a licensed agent is the more viable path.

Does KREC enforce this actively?

Yes. KREC issued specific guidance on HB 62 and wholesale transactions in June 2023, which signals that the commission considers this a priority enforcement area. KREC accepts complaints from consumers, title companies, and other licensees. If a title company flags an unlicensed wholesaler's marketing activity, or if a seller or buyer files a complaint, KREC will investigate. The fact that KREC took the step of publishing formal guidance — rather than simply relying on the existing statute — indicates active attention to this issue.

Is double closing a good workaround?

Double closing is the most common approach for unlicensed wholesalers in Kentucky, and it is fully compliant. When you own the property, you are not assigning a contract — you are selling real estate you own, which does not require a license. The tradeoff is cost: you need funds to close the purchase (or a transactional lender), you pay two sets of closing costs, and you carry the risk of ownership during the resale period. For deals with $10,000 or more in margin, the extra costs are usually manageable. For thinner deals, the math may not work. Many Kentucky wholesalers build transactional lending relationships specifically for this purpose.

What if I have a real estate license in another state?

A real estate license from another state does not authorize you to conduct brokerage activity in Kentucky. You need a Kentucky-specific license. Kentucky does participate in some reciprocity agreements that may reduce your pre-licensing education requirements if you hold an active license in a cooperating state, but you still need to apply for and receive a Kentucky license. Check with KREC for current reciprocity details. Until you hold an active Kentucky license, the same restrictions apply to you as to any unlicensed individual.

Does this apply to commercial properties?

Yes. KRS Chapter 324 defines "real property" broadly — the licensing requirement for advertising equitable interests is not limited to residential transactions. The statute covers all real property types. While the majority of wholesale assignment activity involves residential deals, the advertising restrictions under HB 62 apply equally to commercial, land, and other property types. If you are marketing an assignment deal in Kentucky, the license requirement applies regardless of what type of property is under contract.