is wholesaling legal?

Question

I have an internship with a realtor and he keeps telling me that wholesaling is illegal. His argument is that you don't take title of the property, so therefore you are acting as an intermediary by bringing the investor and seller together. At which point does the wholesaler get their interest in the property?

Brandon L. · Answer

@Luis Saenz some say yes, so say no. I think it's best to read the laws in your area. Seek advice from a legal professional, and conduct yourself accordingly. Or just get a real estate license :)

Account Closed · Answer

Yes wholesaling is legal as long as you have equitiable interest in the property or you are an agent.

Nikolas Ferreira · Answer

so you are putting the house under contract to purchase and in there it will say that either, your company or anyone assigned by your company will purchase the home for the set price. and as a wholesaler you are "selling" the assignment of that property not the property it self and you are charging the assignment fee. hence making your money!

thats the simplest way i can think to put it into words lol. hope it helps.

Michael Mullins · Answer

It's completely legal in Texas, because you are selling the contract not the house. Plus it's understandable that a real estate agent would tell you that. He doesn't want the competition. Because if you really think about wholesaling it makes real estate agents NOT NEEDED.

Jay Hinrichs · Answer

most states its illegal

Zach Romashko · Answer

@Luis Saenz This is a great question and this is a forum I will be following along to learn more as well. From my understanding and what i've learned so far is that wholesaling is not illegal as long as you do not claim you are selling the property. As a wholesaler, you are selling the rights (contract) to purchase the property, not the property itself. I hope this help and I look forward to see what other people post.

Lorin K. · Answer

talk to a attorney. It should be legal.

is wholesaling legal?

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