Massachusetts Wholesaling Laws: Chapter 112 Licensing, 93A, and Attorney Closings

Wholesaling is not prohibited in Massachusetts, and the Commonwealth has no wholesaling-specific statute. There is no Massachusetts wholesaler definition, no required wholesale disclosure form, and no special seller cancellation right for assignment deals. Instead, Massachusetts wholesalers work under the general broker licensing law in Chapter 112, the consumer protection law in Chapter 93A, the Attorney General's foreclosure rescue regulations, and a closing practice where attorneys play a substantive role.

This guide covers each rule with links to the official text and ends with a checklist for Massachusetts deals. For the national picture, see our state-by-state wholesaling legal guide.

Is There a Massachusetts Wholesaling Law?

No. We searched the Legislature's bill database for the 194th General Court (2025–2026) and found no bill on real estate wholesaling or the assignment of purchase contracts, enacted or pending. Results for "wholesaling" were about unrelated subjects such as fuel and tax. If that changes, this page will be updated.

The Licensing Framework: M.G.L. c.112 §87PP–87DDD

Who is a broker. Under c.112 §87PP, a broker is "any person who for another person and for a fee, commission or other valuable consideration… sells, exchanges, purchases… or negotiates," or who "otherwise deals in options on real estate," or who "assists or directs in the procuring of prospects." The key words for wholesalers are "for another person."

License required. §87RR says "no person shall engage in the business of or act as a broker or salesman directly or indirectly, either temporarily or as an incident to any other transaction, or otherwise, unless he is licensed." The same section bars an unlicensed person from suing to recover compensation for broker services.

The owner exemption. §87QQ exempts "any person who, acting for himself as owner, lessor, lessee, tenant or mortgagee," performs these acts "with reference to real estate owned or leased or rented by or to him," and any person "acting for himself, who seeks to acquire… real estate for his own use or investment." The list does not mention a contract purchaser or the holder of an equitable interest. Whether a wholesaler reselling a contract position fits the exemption is not answered by the statute, and we found no Board guidance on the question.

Penalty. Under §87CCC, whoever acts as a broker without a license, or advertises that they are one, "shall be punished by a fine of not more than five hundred dollars." The bigger practical risk is §87RR: an unlicensed person cannot sue to collect a broker's fee.

The regulator is the Board of Registration of Real Estate Brokers and Salespersons.

Assignment vs Double Close in Massachusetts

Assignment of contract: You transfer your rights as buyer to an end buyer, who closes with the seller. You never hold title. Because the owner exemption does not mention contract purchasers, assignments are where the licensing question sits. Make sure your purchase contract allows assignment and that the seller knows you may assign.

Double close: You buy at the first closing and resell at a second. When you resell, you hold title, which puts you closer to the "owner" language in §87QQ. The trade-off is cost: you need funds for the first purchase, and Massachusetts deed excise under M.G.L. c.64D §1 applies to deeds conveying land to a purchaser. A double close records two deeds, so ask your closing attorney how the excise will apply to each.

Chapter 93A and the Foreclosure Rescue Rules

M.G.L. c.93A §2(a) declares "unfair or deceptive acts or practices in the conduct of any trade or commerce" unlawful. Misleading a seller about who you are, what you will do with the contract, or what the property is worth is the kind of conduct a 93A claim targets.

The Attorney General's foreclosure rescue regulations, 940 CMR 25.00, go further for distressed sellers. A "Foreclosure Rescue Transaction" is one where residential property is conveyed but the homeowner keeps a legal or equitable interest, such as a lease or an option to buy back, and the deal is designed to avoid or delay foreclosure (940 CMR 25.01). It is a 93A violation to, "for compensation or gain… engage in, arrange, offer, promote, promise, solicit participation in, or carry out" such a transaction (25.02(1)), or "to advertise, offer or promote" one (25.03(a)). If a seller in foreclosure asks to stay in the home or buy it back later, stop and talk to a Massachusetts attorney.

Closing Practice: Attorneys Play a Real Role

In Real Estate Bar Ass'n for Massachusetts v. National Real Estate Information Services, 459 Mass. 512 (2011), the Supreme Judicial Court held that the closing of the real estate transactions in that case required "not only the presence but the substantive participation of an attorney on behalf of the mortgage lender," and that "the closing attorney must play a meaningful role in connection with the conveyancing transaction." That case involved lender-financed closings; it does not on its face address all-cash deals. In practice, plan for a Massachusetts attorney to be involved in your closings, and confirm early that the closing attorney will handle an assignment.

Marketing Rules

The Board's advertising rules in 254 CMR 3.00 (for example, "A broker shall not advertise in any way that is false or misleading" and "All advertisements shall include the name of the real estate broker") apply to licensees. For unlicensed wholesalers, the risks are §87CCC, which penalizes advertising that you are a broker, and Chapter 93A. Market accurately: say that you hold a contract and are offering to assign it.

Massachusetts Compliance Checklist

1. Have a fully signed purchase contract with a clear assignment clause before you market.
2. Tell the seller in writing that you may assign the contract and may earn a fee.
3. Describe your position accurately in all marketing. Never present yourself as the owner or as a broker.
4. If the seller is facing foreclosure and wants to stay in the home or buy it back, do not proceed without a Massachusetts attorney (940 CMR 25.00).
5. Line up a closing attorney who will handle an assignment before you take the deal to buyers.
6. If you plan to wholesale repeatedly, get an attorney's opinion on whether your process fits the §87QQ exemption or calls for a license.
7. Keep contracts, disclosures, and copies of all marketing in the deal file.

Frequently Asked Questions

Is wholesaling legal in Massachusetts?

Yes. No Massachusetts law prohibits wholesaling, and there is no wholesaling-specific statute. The broker licensing law (M.G.L. c.112 §87PP) and Chapter 93A still apply to how you find sellers, market contracts, and collect fees.

Do I need a real estate license to wholesale in Massachusetts?

The statute does not answer this directly. A broker acts "for another person" for a fee, and the owner exemption covers people acting for themselves as owner or seeking to acquire real estate for their own use or investment. It does not mention contract purchasers. We found no Board guidance on wholesaling. Get a Massachusetts attorney's opinion if you plan to do this regularly.

Is Massachusetts an attorney-closing state?

For lender-financed closings, the Supreme Judicial Court has held that an attorney for the lender must substantively participate (459 Mass. 512, 2011). Plan on attorney involvement in Massachusetts closings.

What is the penalty for unlicensed brokerage in Massachusetts?

A fine of not more than $500 under §87CCC. You also cannot sue to recover compensation for broker services unless you were licensed (§87RR).

Disclaimer

This guide is for informational purposes only and does not constitute legal advice. Statutes and bill status were checked against official Massachusetts sources on October 6, 2026. Laws change, and how any statute applies depends on your facts. Consult a licensed Massachusetts real estate attorney before relying on this information for a transaction. Deal Run provides tools and information to help wholesalers operate more effectively. We are not a law firm and do not provide legal services.