FOCUS, A Leonine Business
Real estate wholesaling has been growing rapidly in recent years, drawing attention from both real estate professionals and lawmakers. Wholesaling in real estate is the practice of securing a property under contract and then assigning that contract or transferring their equitable interest to another buyer. The wholesaler does not actually purchase the property; they act as a middleman to connect sellers with potential buyers.
As the practice has gained popularity, many states have started to introduce new laws to ensure fair practices and protect consumers. So far in 2025, six new laws have been enacted across five states: Connecticut, Maryland, North Dakota, Oklahoma and Tennessee. These laws vary in scope, but generally aim to establish clearer rules around wholesaling, including licensing requirements, disclosure standards and the rights of property owners. Here’s a breakdown of some of the most important changes:
Connecticut included real estate wholesaling requirements in their budget bill, HB 7287/Public Act 25-168, which will go into effect on July 1, 2026. Under this new law, wholesalers in Connecticut will be required to register with the Department of Consumer Protection. The act outlines specific requirements for wholesale contracts, such as requiring sellers to be given a three-business-day window to cancel the contract, which provides them with more time to review terms and consult advisors. Additionally, the act prohibits wholesalers from setting a closing date more than 90 days after the contract is signed, keeping deals from dragging on indefinitely.
In Maryland, HB 124/Chapter 508 and companion bill SB 160/Chapter 509 will go into effect on October 1. These acts establish disclosure requirements for wholesale buyers, ensuring property owners are fully informed about the nature of the transaction. Specifically, wholesalers will have to disclose their intent to assign or sell their equitable interest in the property. If these disclosures aren’t made, the property owner will have the right to cancel the contract without penalty. Additionally, wholesalers will need to clarify that they may not be able to convey the property’s title to the assignee, which can help clarify the process to buyers when they attempt to close on the property.
North Dakota passed HB 1125, which went into effect on August 1. Where previously, the real estate wholesale law applied only to residential properties, this act removes that restriction, applying requirements to all real estate wholesale transactions.
Oklahoma SB 1075, which is scheduled to take effect on November 1, introduces several new consumer protections. Wholesalers will be required to disclose their intent to assign or sell their equitable interest to the homeowner. The act also advises homeowners to seek legal advice before signing any contracts and gives homeowners the right to cancel the agreement within two business days.
In Tennessee, SB 909/Pub. Ch. 72 was signed into law on March 25 and went into effect immediately. This law focuses on disclosure requirements for wholesalers, requiring them to clarify their intent to assign or sell their equitable interest to the homeowner. Furthermore, wholesalers must detail the nature of their interest in the property, helping to avoid confusion about the terms of the transaction.
FOCUS will continue to monitor developments on real estate wholesale in state legislatures across the country.
by Elsa Nygard 9/22/25