Is it legal?

[Molly Krief]

Hellow BP Family,

My question is:

Is it legal for a RE Agent to do wholesale?

[Ben Leybovich]

You absolutely have to disclose. This is the fiduciary piece. There is more, however:

The big hang-up with wholesaling is that there are basically 2 macro approaches - assignment of contract, and resale of a closed transaction. Assignment of contract is becoming an issue in many States. While it would seem that equitable interest which is transferred onto you via a legally executed p&s should be transferable unless specifically discussed in the wording of the contract to the contrary. However, this allows unlicensed people to basically play the middle man, which the Realtors are not crazy about -- so much so that they've successfully lobbied State governments...

However, since you are a licensee, you can potentially bypass this issue. Although, as a licensee, you have fiduciary duties, which make wholesaling kinda problematic.

The best option is just to buy the property, and once you are the owner of record use your license to sell it.