Maryland Wholesaling as a Realtor

[Brian Schroeder]

Hi everyone,

I've come across a few properties that will need to be sold to a cash buyer in Baltimore. I'm curious - does anybody know the implications of wholesaling real estate in Maryland. I am aware that the legality of it is changing in Maryland but I'd like to explain to my broker what the risks to her would be for me marketing a deal. If it's not illegal right now, how is the landscape going to change when you need to be a Realtor to wholesale?

[Russell Brazil]

Quote from @Brian Schroeder:

Quote from @Russell Brazil:

Quote from @Brian Schroeder:

Hi everyone,

I've come across a few properties that will need to be sold to a cash buyer in Baltimore. I'm curious - does anybody know the implications of wholesaling real estate in Maryland. I am aware that the legality of it is changing in Maryland but I'd like to explain to my broker what the risks to her would be for me marketing a deal. If it's not illegal right now, how is the landscape going to change when you need to be a Realtor to wholesale?

 It's illegal in the state of Maryland for a licensee to wholesale per the Maryland Real Estate Commission 

@Russell, 

I don't see in the bylaws any mention of wholesaling being illegal in Maryland. Perhaps you're referring to the section 17-101 (I 1-6) which states "engaging regularly in a business of dealing in real estate or leases or options on real estate."

But that seems to say that if you're engaging in such activities, you MUST be licensed which wouldn't be anti-wholesale.

Could you point me to where you heard wholesaling as a Realtor is illegal in Maryland?

 Im pointing to multiple conversations with the actual commissioners as well as conversations with members of the wholesaling task force. MREC considers a licensee wholesaling to be a net listing.

Additionally the previous Attorney General's opinion was that wholesaling was illegal altogether but refused to enforced the law as he said he didnt have the resources to.

In the 2023 general assembly there was legislation pending on the issue altogether. However they couldnt get the language quite right before the March deadline. We will likely see a 2024 version introduced in the next 2 weeks.