New law makes wholesaling illegal is SC

[John Underwood]

The new law the SC Governor just signed makes wholesaling illegal.

It has 3 parts.

1. It defines wholesaling

2. It says you must have a license to wholesale.

3. It says a licensed realtor can't wholesale.

No attorney is going to risk anything that might be deemed wholesaling. 

You can't do a double closing because you can't market the property or contract prior to owning it.

You can buy the property then market it.

You could also get owner financing for 60 to 90 days and then market the property for sale.

[Tom Gimer]

Quote from @John Underwood:

Quote from @Tom Gimer:

@John Underwood  I read what I believe to be the new SC legislation. Please provide the full new definition of “wholesaling” and reconcile the conclusion of your post with the last sentence in the definition.

  No need. After listening to several Attorneys, they are not going to risk closing these deals goin forward as they have been done in the past.

OK then I will. The definition of wholesaling (a new term under SC brokerage laws) reads as follows:

"Wholesaling" means having a contractual interest in purchasing residential real estate from a property owner, then marketing the property for sale to a different buyer prior to taking legal ownership of the property. Advertising or marketing real estate owned by another individual or entity with the expectation of compensation falls under the definition of "broker" and requires licensure. "Wholesaling" does not refer to the assigning or offering to assign a contractual right to purchase residential real estate.

Since every word of a statute has to be given meaning, the last sentence is a clear carve out for investors who assign contracts and offer that interest to the end buyer. Sounds like more business is coming for local attorneys who understand the new law.