Compliance Center
Wholesaling Compliance Center
States are passing new laws that regulate how wholesale deals — especially assignments — are marketed and closed. These rules affect disclosure requirements, marketing language, and transaction timelines. When you send deals through Flat Rate Wholesale, compliance is built into our process. We handle the disclosures, marketing language, and documentation so you can focus on finding deals.
Not legal advice. Flat Rate Wholesale 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.
Why Compliance Matters Now
Assigning purchase contracts is a recognized real estate practice, and no state has banned it outright. However, the way wholesaling is practiced — particularly how deals are marketed to end buyers and what is disclosed to sellers — has drawn regulatory attention. Some states now require specific licenses, disclosures, or both.
The distinction that matters is between assignment and double closing, because most new state laws specifically target assignment transactions.
Assignment of Contract
In an assignment, the wholesaler signs a purchase contract with the seller, then sells their equitable interest — their contractual right to purchase — to an end buyer. The wholesaler never takes title to the property. The end buyer closes directly with the original seller.
When a wholesaler markets an assigned deal, they are marketing contract rights, not the property itself. This is the key distinction that new state laws address: the wholesaler does not own the property, and marketing materials and disclosures must reflect that.
Regulatory focus
Most new state laws specifically regulate assignment transactions because the wholesaler markets a property they do not own.
Double Closing
In a double close, the wholesaler actually purchases the property from the seller (Transaction A), takes title, and then immediately resells it to the end buyer (Transaction B). These are two separate transactions with two separate closings, sometimes on the same day.
Because the wholesaler takes title before reselling, they are selling property they own. This is a standard real estate transaction and is subject to less scrutiny under new wholesaling laws. The trade-off is higher closing costs — typically around 3% additional — since there are two full closings.
Regulatory focus
Less regulated because the wholesaler owns the property when they sell it. Standard real property sale rules apply.
Important timing distinction: The compliance advantage of a double close 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. The trend is toward closing this perceived loophole. Structure your compliance around what you hold at the time you market, not what you plan to hold at closing.
The core issue is straightforward: when a wholesaler assigns a contract, they are marketing and selling something they do not own — their equitable interest, which is the contractual right to purchase. States are now requiring wholesalers to clearly disclose this to all parties and to ensure their marketing accurately represents what is being sold.
Equitable interest is a real, transferable legal right. It is the right to purchase a property under the terms of a signed contract. Assigning this right is legal. But the buyer and seller must understand that the wholesaler is selling contract rights, not the property itself.
State-by-State Compliance Guides
Each state has its own requirements. Click through for detailed breakdowns of what the law requires, who it applies to, and how FRW handles compliance.
Texas
SB 1577
Requires written disclosure to sellers that the wholesaler intends to assign the contract. Advertising must clearly state the wholesaler holds equitable interest only, not title.
Read full guide →Ohio
SB 155 / ORC 5301.95
Comprehensive wholesaling regulation requiring written disclosures to both sellers and buyers, contract assignability notice, and restrictions on marketing properties without disclosure.
Read full guide →Indiana
HEA 1068
Defines "wholesale real estate transaction" in statute. Requires disclosure that the wholesaler is selling equitable interest, not the property. Mandates specific contract language.
Read full guide →Kentucky
HB 62
Requires disclosure to both buyer and seller that the wholesaler does not hold title and is assigning contractual rights. Penalties for non-disclosure.
Read full guide →Illinois
SB 1872 / RELA Amendment
Licensing-first approach. Broker license required for more than one wholesale transaction per year. Up to $25,000 civil penalty per transaction plus criminal charges for unlicensed activity.
Read full guide →Georgia
GREC Rules
No wholesaling-specific statute, but the Georgia Real Estate Commission enforces rules against unlicensed brokerage activity. Marketing practices and compensation structures may trigger licensing requirements.
Read full guide →Florida
FL Statute 475
No wholesaling-specific statute, but Chapter 475 licensing rules and DBPR enforcement affect every deal. Criminal penalties for unlicensed brokerage activity. The largest wholesaling market without a specific law.
Read full guide →Tennessee
SB 909 / Pub. Ch. 72
Requires bold, large-font disclosures to both seller and end buyer. Three-business-day advance notice before assignment takes effect. Two-year statute of limitations for private cause of action.
Read full guide →Maryland
HB 124 / Chapter 508
Dual disclosure requirements for sellers and end buyers. Seller can rescind without penalty if disclosure is missing. End buyer entitled to deposit refund if equitable interest not disclosed. Residential property only.
Read full guide →Connecticut
PA 25-168 / HB 7287
Registration with Department of Consumer Protection required. Three-business-day seller cancellation window. 90-day maximum closing date. Violations treated as unfair trade practices under CUTPA.
Read full guide →Oklahoma
SB 1075
Residential-only law. Written disclosures to both seller and buyer. Two-business-day seller cancellation window. Explicitly includes simultaneous double closings in its wholesaling definition.
Read full guide →North Carolina
H797
License required for wholesaling. 30-day seller cancellation period. Class 1 misdemeanor for unlicensed activity. One of the most restrictive frameworks in the country.
Read full guide →Pennsylvania
Act 52
License required. 30-day seller cancellation right. Written disclosures of assignment intent and profit. Most comprehensive state law combining licensing with disclosure and consumer protections.
Read full guide →Arizona
ARS 44-5101 / HB 2747
Two mandatory written disclosures to sellers. Must disclose non-ownership and assignment intent before contract execution. Consumer fraud enforcement for violations.
Read full guide →South Carolina
HB 4754
Assignment of contracts explicitly legalized, but marketing the property triggers brokerage licensing. License-based enforcement through SC Real Estate Commission.
Read full guide →Oregon
HB 4058
$300 registration with Oregon Real Estate Agency required. Written seller disclosures. 5-day seller cancellation window. Registration-based approach with OREA enforcement.
Read full guide →Wisconsin
Act 208
Disclosure-only approach. Written notice to sellers of non-ownership and assignment intent. No licensing requirement specifically for wholesaling. Lightest regulatory touch of enacted laws.
Read full guide →New Jersey
S3824 (Pending)
No wholesaling-specific statute yet, but S3824 is pending. Attorney-closing state. Current framework governed by NJ Real Estate License Act. NJREC actively monitors wholesaling activity.
Read full guide →California
BPC 10131
No wholesaling-specific statute, but Business and Professions Code 10131 licensing requirements and DRE enforcement create significant compliance obligations. Largest state market by volume.
Read full guide →North Dakota
HB 1125
Expanded existing 2021 law to all property types (originally residential only). Written seller disclosures required. Licensing exemption for contract assignment without marketing as owner.
Read full guide →Nebraska
LB 892
License-based approach. Marketing of contract rights requires a real estate license. Vacant lot exemption exists. NREC enforcement with civil penalties.
Read full guide →Built Into Our Process
How FRW Keeps You Compliant
We build compliance awareness into our process so you are not starting from scratch. When you send deals through Flat Rate Wholesale, we work to include the right disclosures and marketing language for each state.
Disclosure Generation
Our process includes state-specific disclosures as part of every deal package. When Texas SB 1577 requires a written disclosure that the contract will be assigned, we include it before anything is marketed. We work to stay current with disclosure requirements, though you should always verify requirements with your own attorney.
Compliant Marketing Language
Our marketing packages and deal pages are written to accurately represent what is being sold. For assignment deals, marketing materials clearly state that the wholesaler holds equitable interest — not title — and that the buyer is purchasing contract rights. This is not fine print. It is part of the marketing itself.
Deadline and Timeline Tracking
Some states impose timing requirements on when disclosures must be provided or when assignments must be recorded. Our deal pipeline tracks contract dates, option periods, closing deadlines, and disclosure delivery dates. You get alerts when action is needed, not after something has been missed.
State-Specific Requirements
Each state has different rules. Texas requires seller disclosure of assignment intent. Ohio mandates disclosures to both buyer and seller. Indiana defines specific contract language. Our system identifies the deal's state and applies the correct requirements. As new laws pass, we update our process — you do not need to track legislative changes yourself.
Legal Disclaimer
This information is for educational purposes only and does not constitute legal advice. Wholesaling regulations vary by state and are subject to change. The summaries provided here reflect our understanding of current law as of publication and may not capture every nuance or recent amendment. Consult a real estate attorney licensed in your state for specific guidance on how these laws apply to your transactions.
Stop Worrying About Compliance
Send your deals through Flat Rate Wholesale. We handle the disclosures, marketing language, and state-specific requirements so you can focus on finding deals.