Is Wholesaling Real Estate Legal in Your State? [2025 Free Guide Inside]

Is wholesaling real estate legal?

If you're new to real estate investing, this is probably one of the first—and most important—questions on your mind. And for good reason. Getting it wrong could land you in hot water with regulators, or worse, cost you your first deal.

The good news? Yes, wholesaling is legal. But here’s the catch: every state has different rules about licensing, contract language, and how you're allowed to market deals. What’s perfectly legal in one place could be illegal in another.

That’s why we put together a FREE downloadable guide that shows you how to wholesale real estate legally in your state. Whether you're in California, Texas, Florida, or anywhere in between, this guide breaks it all down step by step. Download it here to protect yourself and start wholesaling the right way today.

Ready to dive in? Use the jump links below to head straight to the section that fits where you’re at, whether you're checking your state laws or learning how to stay legal on your first deal:

• What Is Wholesaling Real Estate?
• Is Wholesaling Real Estate Legal?
• Wholesaling Real Estate Legally (3 Methods)
• Is Co-Wholesaling Real Estate Legal?
• Is Reverse Wholesaling Legal?
• How Is Wholesaling Real Estate Legal?
• Do You Need A License To Wholesale Real Estate Legally?
• State-By-State Breakdown Of Wholesaling Laws
• What Are The States Where Real Estate Wholesaling Is Legal?
• FAQ: Is Wholesaling Real Estate Legal?
• Final Thoughts On Wholesaling Legally As A Real Estate Investor

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What Is Wholesaling Real Estate?

If you’re new to real estate investing, you’ve probably asked yourself: Is wholesaling real estate legal, and how does it actually work? Wholesaling is a popular entry point because it allows new investors to flip contracts instead of properties, eliminating the need for significant capital, mortgages, or property management headaches.

Here’s how it works: A wholesaler finds a motivated seller, puts the property under contract (usually below market value), and then assigns that contract to an end buyer for a profit. The wholesaler doesn’t buy or sell the house; they sell their contract rights. The buyer pays an “assignment fee” in exchange for access to the deal.

Assignment of contract is the most common form of wholesaling, especially for beginners. It’s fast, low-risk, and requires little to no money out of pocket. But while the strategy is simple, the legal side of wholesaling real estate can get tricky if you’re not careful.

So, is wholesaling real estate legal? Yes—in most states, when done correctly. Wholesaling is legal because you’re not acting as a licensed agent or broker; you’re transferring your interest in a contract. But every state has its own rules around licensing, disclosures, and how you can market your deals. That’s where things often go wrong.

If you advertise a property like you own it—or don’t clearly disclose that you’re assigning the contract—you could violate state laws or even get fined. Many of the legal issues in wholesaling stem from poor communication or a lack of transparency. That’s why it’s essential to understand your state’s rules before doing your first deal.

The key is to be upfront with sellers, buyers, and your paperwork. Know the regulations, disclose everything, and avoid marketing the property itself unless you’re licensed to do so.

In short, wholesaling real estate is legal, but only when you play by the rules. That’s why we created a FREE Downloadable Guide to help you wholesale legally in your state. Use it to stay compliant, build trust, and close deals with confidence.

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Is Wholesaling Real Estate Legal?

Yes, wholesaling real estate is legal, as long as you follow the rules in your specific state. That’s the key. While wholesaling is a widely accepted investment strategy across the U.S., each state has its own regulations that govern how (and if) you can legally wholesale property.

Some states allow it freely with minimal oversight. Others have stricter requirements, especially around licensing, marketing, and disclosures. In many cases, the line between legal wholesaling and illegal brokering comes down to whether you’re acting as a principal in the transaction or trying to represent someone else without a license.

This gray area is where inexperienced wholesalers often get into trouble. If you’re marketing a property you don’t yet own, or failing to disclose your intent to assign the contract, you could easily cross a legal line without realizing it.

The safest way to wholesale legally is to be transparent from the start. Make sure your contracts clearly state that you’re assigning your interest, not selling the property itself. Disclose your role to both the seller and the end buyer, and ensure your paperwork is solid. In most states, this level of transparency is enough to stay on the right side of the law.

That said, some states require wholesalers to be licensed real estate agents to market deals or collect assignment fees. Others restrict how you advertise the property or require you to include specific contract clauses to avoid liability.

If you’re unsure about your local laws, don’t guess. Talk to a real estate attorney in your state or use a proven legal resource to guide your process. We created a FREE Downloadable Guide that walks you through the legal requirements for wholesaling real estate in all 50 states, so you can get started the right way, without legal headaches.

Bottom line? Wholesaling is legal when you follow your state’s laws and operate ethically. Know the rules, disclose everything, and always use clear contracts. That’s how successful wholesalers stay compliant and close deals with confidence.

Download the Free Guide to Start Wholesaling Real Estate Legally Today

If you’re serious about wholesaling real estate, the first step is making sure you’re doing it legally. That’s why we created this FREE Downloadable Guide, so you can understand your state’s rules, avoid costly mistakes, and close deals the right way.

Inside, you’ll learn the legal do’s and don’ts of wholesaling in all 50 states, including whether you need a license, what to include in your contracts, and how to stay compliant when assigning deals. Whether you’re wholesaling your first property or scaling up, this resource will help you protect your business and your profits.

Click the image below to download it and get started today.

Wholesaling Real Estate Legally In 3 Methods

If you want to wholesale properties, there are several ways to structure a wholesale deal.  The most common are:

 

Here’s a breakdown of the three most common legal methods of wholesaling real estate—each with its own advantages depending on your experience, funding, and local laws.

Method	What It Is	Best Used When...	Why It's Effective
Assignment of Contract	You sign a purchase agreement with the seller and assign your rights to a new buyer for a fee.	You want to avoid funding, have a solid buyer lined up, and state law allows assignments.	It’s fast, doesn’t require capital, and is ideal for beginners—if done with full disclosure.
Double Closing	You close on the property and immediately resell it—often on the same day—using different funds.	You want to conceal your profit margin or your state has assignment restrictions.	It adds a legal layer of protection and avoids disclosure issues, though it requires funding.
Buying & Selling	You close on the property, take title, and then resell it at a later date for a profit.	You have access to capital or hard money and want full control of the transaction.	It offers the most flexibility and avoids wholesaling-specific legal issues entirely.

 

Let's dive into each strategy in more detail below, and explain how at least one of these (if not all) strategies is legal in all states.

How Assignment of Contract Works in Real Estate Wholesaling

One of the most popular real estate wholesaling strategies is the assignment of contract. After getting a property under contract—sometimes with a small or even waived earnest money deposit—you assign your interest in that contract to an end buyer for a fee.

In this method, you're acting as a principal in the transaction, not as an agent or broker. That means you don’t need a real estate license, because you’re selling your contractual rights, not the property itself. The investor you assign the contract to takes on all the rights and responsibilities of the deal and becomes the one who closes with the seller.

As the middleman in this type of transaction, you're typically not responsible for any closing costs. Your compensation comes from what's known as an assignment fee, which is similar in concept to a real estate commission. This fee is typically paid when the transaction closes, although in some cases it may be collected at the time the contract is assigned, depending on the deal's structure.

One reason assignment is so attractive to new real estate investors is its simplicity. In many cases, all you need is a short, one-page real estate assignment agreement to transfer your rights. Still, it’s critical to have that document reviewed—or preferably drafted—by an attorney familiar with real estate contracts. If it’s not structured correctly, certain clauses or local restrictions can render the assignment unenforceable.

There are some exceptions and limitations you should be aware of. Certain types of properties, such as HUD homes and REO properties (real estate owned by lenders), often include non-assignable contract language. These distressed properties are frequently sold under strict rules that prohibit contract assignment altogether.

Another critical part of assigning contracts is full disclosure. You must be upfront about your role and clearly state how much you're making from the assignment fee. If the seller or buyer feels the fee is excessive—especially if they believe you took on little to no risk—they may attempt to renegotiate. Transparency is essential to protecting the deal and maintaining trust.

Some wholesalers also use what’s known as an “entity assignment” strategy. Instead of signing the purchase agreement under your personal name, you create an LLC or trust specifically for the transaction and place that entity on the contract as the buyer. You then assign or sell the entity itself to your end buyer. This approach can help overcome seller objections to assignment clauses, since the original contract remains unchanged.

While entity assignments can be useful in certain markets, they do come with added costs, including legal fees and entity formation expenses. Still, for experienced investors or in areas with assignment restrictions, it can be a smart workaround.

In short, assigning contracts is one of the most accessible and low-risk ways to wholesale real estate deals without a license, especially when compared to methods like double closing. Just be sure to disclose everything, structure the paperwork correctly, and understand any limitations based on the type of property or local regulations.

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How a Double Close Works in Real Estate Wholesaling

A double close—sometimes called a two-step or back-to-back transaction—involves executing two separate deals. First, you purchase the property from the original seller (the “A to B” transaction). Then, you sell that same property to your end buyer (the “B to C” transaction). These deals often happen on the same day or within a few days of each other, depending on how your funding and title coordination is structured.

This wholesaling exit strategy is especially popular with investors who want to keep their profit margin private. Unlike contract assignments, a double close doesn’t require you to disclose how much you're making on the deal to either party. Your buyer and seller only see the price on their end, which gives you more negotiating power and flexibility to maximize your upside.

Another advantage is that you don’t have to reveal your intention to resell the property immediately. Because you’ll take legal title before marketing the property or closing with your buyer, you retain full control over how and when to present the deal. This can be a strategic way to wholesale properties in markets or states with assignment restrictions.

Many experienced wholesalers consider this the “cleanest” method of wholesaling. You’re not transferring contract rights—you’re actually taking ownership of the property, which can increase your credibility and avoid pushback from skeptical sellers or buyers. Once you own it, you're free to market it however you'd like, as long as those efforts take place after closing the first transaction.

Of course, there are trade-offs. Because you’re completing two closings, you’ll have to account for two sets of closing costs. While these can eat into your profit, a well-structured double close often leaves enough room to cover those expenses without reducing your bottom line significantly.

Another consideration is funding. Double closes require access to capital or transactional funding—either from private lenders, hard money, or your own cash reserves. You’ll need to fund the initial purchase and have everything ready to go before your resale closes. For some investors, that extra financial requirement is worth the added control and legal clarity this method provides.

How Buying and Reselling Works as a Wholesaling Strategy

The third—and most straightforward—way to wholesale real estate legally is to actually purchase the property, take title, and then resell it at a later date. Unlike an assignment or double close, this method involves full ownership, giving you maximum control over the deal, timeline, and resale price.

A lot of investors use this strategy when they’re planning to fix the place up before selling it. Sometimes that means just cleaning it up and adding fresh paint. Other times, it’s a full remodel. The goal’s the same either way—make the property worth more so it can sell for a profit. It’s a go-to move for flippers and folks looking to turn properties around quickly.

However, not every resale involves renovations. In some cases, the buyer may choose to purchase the property “as is” and immediately resell it to another investor or retail buyer. If you’re wholesaling to this type of buyer, it’s important to understand their exit plan—whether they intend to flip, rent, or resell—and structure your offer accordingly.

Because you’re transferring full ownership in this model, your buyer will need to factor in all associated costs—including their purchase price, holding costs, and any potential repair budget. These numbers can significantly impact the offer they’re willing to make, so clear communication is key.

As the wholesaler, you should always discuss these details upfront. Knowing your buyer’s intended exit strategy will help you present the deal more effectively, set realistic expectations, and avoid surprises at closing. While buying and reselling may require more capital and longer timelines, it offers greater flexibility and removes many of the legal gray areas associated with other wholesale methods.

Read Also: Virtual Wholesaling - How To Flip Houses From Home (2023) 

Is Co-Wholesaling Real Estate Legal?

We get this question all the time from new investors: Can you legally co-wholesale real estate? The answer is yes—co-wholesaling is legal in most cases, as long as you follow the proper legal procedures. Like any real estate deal, the transaction needs to be structured the right way and stay within your state’s regulatory guidelines.

Co-wholesaling is essentially a joint venture. Two wholesalers team up to find, negotiate, and move deals together. That might mean one partner brings the deal while the other brings the buyer, or both partners may share responsibilities equally. Together, they either assign the contract or complete a double close and sell the property to another investor.

Some of these partnerships are one-time collaborations. Others turn into long-term business relationships across multiple wholesale transactions. In both cases, clear expectations matter, especially when it comes to how fees are split and what roles each person plays.

It’s also smart to protect yourself. Every co-wholesaling agreement should include a written partnership agreement with clear terms, including non-compete and non-circumvention clauses. These help ensure that each party honors the relationship and doesn’t cut the other out of future deals.

One of the biggest benefits of JV wholesale partnerships is the ability to pool strengths. Maybe one person has deep market knowledge, while the other has a strong buyers list. Or one has funding connections, and the other handles lead gen. When done right, co-wholesaling lets you move faster and close more deals—without doing everything on your own.

Sometimes, experienced wholesalers team up with newer investors, offering mentorship and guidance in exchange for shared profits. In most cases, the assignment or wholesale fee is split 50/50—but like any partnership, the terms are fully negotiable. The key is transparency and trust.

Is Reverse Wholesaling Legal?

Reverse wholesaling works just like traditional wholesaling, but in reverse order. Instead of locking up a property first, you start by finding a serious buyer, then go out and locate a property that fits what they’re looking for. This approach is completely legal, as long as you follow the same laws and licensing rules that apply to any other wholesale deal.

What makes reverse wholesaling so effective is that it removes a lot of the guesswork. If your buyer tells you exactly what type of property they want—price range, condition, location—you’re not wasting time chasing deals they’ll never touch. It’s a more targeted way to work the acquisition side of the business.

Just like with standard wholesaling, due diligence still matters. You’ll need to vet deals, analyze comps, and ensure your buyer is a good fit for the property. The main difference is that you’re building your deals around a buyer’s needs from the start. That kind of alignment often leads to faster closings and fewer fall-throughs.

Another huge advantage of reverse wholesaling is that it helps you build long-term relationships with cash buyers. Once they know you can bring them what they’re looking for, they’re more likely to keep working with you, deal after deal. Over time, this repeat business can make your entire operation more predictable and scalable.

If you’re still building your buyers list, start now. You don’t need dozens of people; you just need a few serious buyers who are ready to act. The more conversations you have, the more clearly you’ll understand what investors in your market actually want.

And when you’re working with motivated sellers who need to move quickly, reverse wholesaling gives you a major edge. You can show them you already have a buyer lined up, which builds credibility and increases your odds of getting the contract signed on the spot.

This approach also works great for virtual wholesalers. Because the buyer is already lined up, it’s easier to close deals in markets you don’t live in. Today’s investors are more comfortable than ever with buying properties sight unseen, as long as the numbers make sense.

Reverse wholesaling is especially useful when you're working with flippers, rental property buyers, or developers looking for off-market deals. Whether they’re focused on distressed homes, rental-ready properties, or even just the land, your job is to match them with the right opportunity. The stronger your network, the more deals you’ll be able to close.

Many successful wholesalers use both strategies—reverse and traditional—at the same time. Whether you’re sourcing sellers or locking in buyers, staying active on both sides of the business gives you more options, more leverage, and more deals over time.

Read Also: Cash Buyers - How To Find Real Estate Buyers & Build Your List

How Is Wholesaling Real Estate Legal?

Wholesaling is legal, but only if it’s done the right way. And that “right way” means following both state and local laws that govern how real estate transactions are structured and marketed.

The biggest legal line wholesalers need to avoid is acting like a real estate agent without a license. If you’re not a licensed broker, you can’t market or advertise a property you don’t own. What you can legally market is your interest in a contract. That’s the difference between wholesaling and brokering, and it matters.

Let’s look at two quick examples:

• In Florida, assigning contracts is legal, as long as the purchase agreement doesn’t include a clause prohibiting assignment. If the contract allows it, there’s no legal issue.
• In New York, you need a license to publicly advertise or market any property. If you’re wholesaling there, you’re only allowed to market the assignable rights to your contract, not the property itself.

These differences are exactly why every wholesaler needs to understand the rules in their state. Real estate laws vary, and they do change. Staying informed isn’t optional. It’s part of doing business the right way.

If you’re assigning contracts, be upfront about it. Your agreement with the seller should clearly state that you’re not buying the property for yourself; you’re assigning the contract to another buyer. This is what keeps the transaction legal. What’s not legal is trying to sell a property you don’t own, without a license.

If you want more flexibility in how you operate, getting your real estate license is always an option. It takes time and investment, but in certain states, it can open doors, especially if you plan to wholesale long term.

Also, remember this: if you’re not the owner, you can’t publicly market the property. But you can privately assign your contract to another buyer for a fee. Just make sure that when you do, you’re disclosing everything. Your marketing materials, emails, and conversations with buyers should make it clear that you’re selling your contractual interest, not the house itself.

Another legal path wholesalers use is buying and reselling. In this case, you actually take title to the property and then sell it. Since you’re the legal owner, you can advertise, market, and set the price however you like. Of course, this route requires more capital and may involve extra closing costs, but it gives you full control.

If you’re serious about wholesaling, it’s worth building a relationship with a real estate attorney who understands investor-friendly contracts. Having the right legal advice can help you avoid expensive mistakes and make sure your deals hold up under scrutiny.

Above all, be transparent. Everyone involved—sellers, buyers, agents—should understand exactly what your role is. Disclose clearly, respond to questions quickly, and make sure every contract is complete and properly executed.

Wholesaling real estate is legal in most states, but it’s not a free-for-all. There are clear boundaries—and it’s your job to stay on the right side of them. If you do, you’ll not only avoid legal issues—you’ll build a reputation that makes people want to keep doing deals with you.

Do You Need A License To Wholesale Real Estate Legally?

In most cases, the answer is no.

But you do need to understand what local laws are in place, since there may be limitations on the number of wholesaling deals you can do per year in some jurisdictions.

This is not to say that having a real estate license won’t benefit you, because it will.  You will not be bound by contract assignment limitations or how you market a property when you are licensed.

However, if you are a licensed agent, in most states, you’ll need to disclose that fact upfront when entering into a contract with a seller or a buyer. Again, this speaks to full transparency, which should be a wholesaler’s goal on every transaction. 

Also, as a real estate agent, you’ll earn a commission on the sale of the home instead of collecting an assignment fee. That could impact the amount of money that you receive. 

The bottom line is that a real estate wholesaler sells the contractual rights to a property, but a real estate agent sells the actual property.

State-By-State Breakdown Of Wholesaling Laws

Use the table below as your go-to reference for checking the legal status of real estate wholesaling in every U.S. state. Since laws and regulations are constantly evolving, especially around licensing and marketing rules, be sure to revisit this page regularly for the latest updates.

 

Wholesaling Real Estate Laws by State (2025 Legal Map)

State	License Required?	Restrictions / Regulations	Best Practices
Alabama	No	General wholesaling allowed with disclosure	Only market assignable interest
Alaska	No	Little regulation; avoid unlicensed brokering	Stay transparent and avoid advertising property
Arizona	No	Disclosure of license status and intent required	Always disclose your role and contractual interest
Arkansas	No	No specific wholesaling laws	Avoid marketing property without ownership
California	No	Can’t market property without license	Market contractual rights only
Colorado	No	Must disclose intent and contractual interest	Work with investor-friendly title companies
Connecticut	No	Avoid acting as broker without license	Assign contracts only with clear disclosures
Delaware	No	No specific laws regulating wholesaling	Disclose role and use assignment-friendly contracts
Florida	No	Must not advertise property without ownership	Market only the contract, not the home itself
Georgia	No	Gray area: advertising property may violate law	Market assignable rights and avoid listing language
Hawaii	No	No specific laws; follow federal and ethical guidelines	Avoid marketing real property without ownership
Idaho	No	Must clearly assign contracts, not market property	Use contracts with clear assignment language
Illinois	Yes (after 1 deal/year)	Only one wholesale deal per year without license	Get licensed or partner with a licensed agent
Indiana	No	Must disclose wholesaler role and assignment intent	Include disclosures in every contract and communication
Iowa	No	Advertising rights vs. property itself is a legal gray area	Avoid any public property listings; market privately
Kansas	No	Must not perform unlicensed brokerage	Market contract rights, not the home directly
Kentucky	No	Wholesaling allowed; advertising regulated	Disclose intent and avoid marketing property itself
Louisiana	No	Wholesaling not addressed specifically in law	Use contract assignments with full disclosure
Maine	No	No wholesale laws; general real estate compliance applies	Avoid making it appear you're brokering without a license
Maryland	No	Avoid unlicensed real estate marketing	Clearly market contract rights only
Massachusetts	No	No direct statutes on wholesaling; misrepresentation laws apply	Be clear you're assigning a contract, not selling real estate
Michigan	No	Advertising property without license is restricted	Only market assignable contract rights
Minnesota	No	Requires disclosure of intent to assign; marketing may be restricted	Include assignment intent in all documents
Mississippi	No	Limited state-specific rules; avoid brokering without license	Focus on private marketing of equitable interest
Missouri	No	Wholesaling is allowed; marketing regulation unclear	Stick to marketing contracts, not properties
Montana	No	No known wholesaling restrictions	Follow general best practices for transparency
Nebraska	No	Marketing an equitable interest is considered brokerage activity	Avoid public advertising unless licensed
Nevada	No	No specific laws; general contract assignment allowed	Ensure contracts are assignable and disclose properly
New Hampshire	No	No known restrictions	Follow federal standards and private assignment practices
New Jersey	No	Avoid advertising without ownership or license	Disclose assignment clearly and avoid public listings
New Mexico	No	Limited wholesaling guidance from state agencies	Use clear assignment language and avoid public marketing
New York	No	Marketing property without a license is illegal	Only market the assignable interest; avoid advertising property itself
North Carolina	No	Marketing the property itself without a license may violate laws	Disclose that you're assigning the contract, not selling real estate
North Dakota	No	No specific wholesaling statutes; general real estate laws apply	Avoid brokering language; emphasize contract rights only
Ohio	No	You must disclose your equitable interest before marketing	Do not market property itself unless licensed
Oklahoma	No	Must disclose assignment intent and fee; seller cancellation rights apply	Use clear, written disclosures and provide seller protections
Oregon	No	No clear restrictions, but general consumer protection laws apply	Be transparent with all parties; consult a real estate attorney
Pennsylvania	No	Assignment must be disclosed; unclear enforcement on marketing	Disclose your position and avoid direct property marketing
Rhode Island	No	Limited information available on wholesaling	Use clean contracts and maintain legal documentation
South Carolina	No	HB 4754 prohibits public ads without ownership	Assign privately or get licensed for broader options
South Dakota	No	No specific wholesaling statutes on record	Market only your contract rights, not the property
Tennessee	No	No known laws directly regulating wholesaling	Use clear disclosures and consult with legal counsel
Texas	No	Must disclose equitable interest when marketing	Avoid marketing property itself without disclosure
Utah	No	Real estate advertising is regulated under license law	Avoid advertising property without license; only market contract position
Vermont	No	Very limited information; general brokerage laws apply	Disclose role and avoid brokering behavior
Virginia	No	No explicit wholesaling rules, but must follow advertising regulations	Disclose clearly; market only assignment rights
Washington	No	Wholesaling legal, but advertising can raise issues	Avoid property marketing without license; disclose equitable interest
West Virginia	No	Limited guidance; general real estate law applies	Don’t advertise property unless you own it or are licensed
Wisconsin	No	Wholesaling is legal; must not act as unlicensed broker	Assign contracts only; avoid marketing property directly
Wyoming	No	No wholesaling restrictions; standard laws apply	Follow ethical guidelines and clarify your role to all parties

 

What States Have Laws Regulating Real Estate Wholesaling?

If you’re wondering, “Is wholesaling real estate legal?”, the answer is yes, wholesaling is legal in all 50 states. But that doesn’t mean it’s unregulated. Many states have passed laws that govern how you can wholesale property, particularly when it comes to licensing requirements, contract assignment disclosures, and advertising restrictions.

To legally wholesale real estate in any state, it’s important to understand whether you’re allowed to assign contracts, how you must disclose your role in the deal, and if you’re permitted to advertise properties without a real estate license. Below are some of the states with specific wholesaling regulations investors need to know about:

• Illinois: Wholesaling is legal in Illinois, but you’re limited to one wholesale deal per year without a real estate license. If you plan to do multiple deals, you must become licensed or work with a licensed real estate broker.
• Oklahoma: SB 1075 redefines who counts as a wholesaler, requires wholesalers to make specific disclosures (including assignment intent and fee details), and grants the seller limited cancellation rights. These updates emphasize full transparency and added protection for both buyers and sellers.
• Ohio: Ohio wholesalers are required to disclose their equitable interest in a property and cannot advertise a deal unless that interest is clearly stated. You cannot market the property itself without a license, only your position in the contract.
• Texas: In Texas, you may advertise your contract for sale only if you disclose that you hold an equitable interest. Marketing the property without this disclosure can be considered unlicensed activity.
• South Carolina: Under House Bill 4754, wholesalers are prohibited from publicly advertising a property they do not own. However, assigning a contract is still legal if it’s done privately and with proper documentation. Getting licensed in South Carolina is strongly encouraged for flexibility and compliance.
• Georgia: While contract assignments are legal, advertising a property without being a licensed agent is a gray area. To stay compliant, Georgia wholesalers should only market their contractual interest and avoid language that suggests they are selling the property.
• North Carolina: Wholesaling is allowed, but advertising the property itself without a license may violate state law. You must disclose that you are marketing your interest in a contract, not the property.
• Indiana: In 2022, Indiana passed a law requiring wholesalers to disclose their role in the transaction and whether they intend to assign the contract. Failure to do so can be considered deceptive and subject to enforcement.
• Michigan: Wholesaling is permitted, but if you advertise a property without being a licensed broker or owner, you could be seen as operating outside the law. To stay safe, only market your assignable contract rights.
• Nebraska: Nebraska law treats marketing of an equitable interest (your assignment contract) as brokerage activity, meaning anyone who publicly advertises such an interest must hold a real estate license.

Because wholesaling regulations can change quickly, always verify the laws in your state or consult with a real estate attorney who understands local contract law. And remember: being transparent, disclosing your role, and following your state’s licensing guidelines are the keys to wholesaling real estate legally.

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These state-specific rules underscore the importance of understanding local laws. While wholesaling real estate is legal, confusion can arise when wholesalers fail to comply with regulations or neglect proper disclosures. Always ensure that you’re operating transparently and ethically, and consider consulting with legal or real estate professionals to avoid potential pitfalls.

By staying informed about the laws in your state, you can confidently pursue wholesaling opportunities while maintaining compliance. Whether you're working in Illinois, South Carolina, or any other state, understanding and following the rules will help you build a successful and sustainable business.

• Alabama
  • Read our Ultimate Guide: Is Wholesaling Real Estate Legal in Alabama?
• Alaska
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• Arizona
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• Arkansas
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• California
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• Colorado
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• Connecticut
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• Delaware 
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• Florida
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• Georgia
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• Hawaii
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• Idaho
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• Illinois
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• Indiana
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• Iowa
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• Kansas
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• Kentucky
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• Louisiana
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• Maine
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• Maryland
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• Massachusetts
  • Read our Ultimate Guide: Is Wholesaling Real Estate Legal in Massachusetts?
• Michigan
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• Minnesota
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• Missouri
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• Mississippi
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• Montana
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• Nebraska
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• Nevada
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• New Hampshire
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• New Jersey
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• New Mexico
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• New York
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• North Carolina
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• North Dakota
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• Ohio
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• Oklahoma
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• Oregon
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• Pennsylvania
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• Puerto Rico
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• Rhode Island
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• South Carolina
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• South Dakota
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• Tennessee
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• Texas
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• Utah
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• Vermont
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• Virginia
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• Washington DC
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• Washington State
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• West Virginia
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• Wisconsin
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• Wyoming
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FAQ: Is Wholesaling Real Estate Legal?

Wholesaling real estate comes with a lot of legal questions, especially if you're new to the strategy. Below are answers to the most frequently asked questions about how to wholesale property legally, ethically, and successfully in your state.

Do you need a real estate license to wholesale property?

No, in most states, you don’t need a license to wholesale real estate if you're acting as a principal in the transaction. However, several states require you to disclose your intent to assign the contract, and a few limit how many deals you can do per year without a license. Always check your state’s regulations.

Is it legal to advertise a wholesale deal?

That depends on your state. In many states, you can only advertise your equitable interest in a contract—not the property itself—unless you’re a licensed real estate agent. Publicly marketing a property you don’t own may be considered illegal brokerage activity in some jurisdictions.

What’s the difference between assigning a contract and brokering real estate?

When you assign a contract, you're selling your right to purchase a property. You're not acting on behalf of anyone else. Brokering, on the other hand, involves representing buyers or sellers in exchange for a fee, and typically requires a real estate license. The distinction is crucial for staying compliant.

Are there states where wholesaling real estate is illegal?

Wholesaling is legal in all 50 states, but some states have passed laws that regulate how it must be done. For example, Illinois limits you to one deal per year without a license, and Oklahoma requires specific disclosures under SB 1075. Understanding your state’s laws is key to wholesaling legally.

What is equitable interest in wholesaling?

Equitable interest means you have a legal right in the property contract. When you put a property under contract, you hold an equitable interest that allows you to assign that contract to another buyer. This is what gives wholesalers the ability to legally profit from the deal without owning the property.

What happens if you wholesale without following the law?

Wholesaling without following your state’s regulations can be considered illegal brokerage activity. This can result in fines, contract disputes, or even legal action. The safest approach is to fully disclose your role, understand the local laws, and use proper documentation for every deal.

Can I wholesale and reverse wholesale at the same time?

Yes. Many successful investors use both strategies. Traditional wholesaling starts with finding a deal, while reverse wholesaling begins with securing a buyer. Working on both sides allows you to scale faster and close more deals with less wasted time.

Final Thoughts On Wholesaling Legally As A Real Estate Investor

If you’ve been asking yourself, Is wholesaling real estate legal, the answer is yes, when it’s done by the book. Wholesaling is a legitimate strategy that allows you to earn income by connecting sellers and buyers, as long as you follow the laws and disclose your role in the transaction.

At the end of the day, this business is about solving problems and creating win-win solutions. When you wholesale real estate legally and ethically, you’re not just flipping contracts—you’re building a reputation and a foundation for long-term success in real estate.

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*Disclosure: Real Estate Skills is not a law firm, and the information contained here does not constitute legal advice. You should consult with an attorney before making any legal conclusions. The information presented here is educational in nature. All investments involve risks, and the past performance of an investment, industry, sector, and/or market does not guarantee future returns or results. Investors are responsible for any investment decision they make. Such decisions should be based on an evaluation of their financial situation, investment objectives, risk tolerance, and liquidity needs.