Wholesale Laws When Selling Out Of State

[Elliott Hughes]

Hello All,

I am more than eager to get started on my RE journey. I am signed up for a pre-license class and will obtain my license by June of this year. However, there is something I am curious about which I have not found any answers.

I live in Illinois, which currently I am only allowed to wholesale one property without a license. In Indiana, they do not have these laws. Do wholesale laws apply to where I reside or where the property is sold? I live within two hours of three states with more relaxed laws than Illinois, but because my address is in IL I am not sure if I will be violating the wholesale laws by selling contracts in other states. My assumption is the law applies to the property location, but since I am just entering the game I want to make sure I know which laws to follow.

Thank you.

[Zoran Stanoev]

The location of the property dictates which state’s law is applied. However, if you’re really close to another state, I’d be careful where your seller/buyer are located and if they’re also crossing state lines. But if you’re in IL selling an Indiana property to an Indiana resident, Indiana law will apply and the IL wholesaling law will not apply.