Lawmakers to make real estate wholesalers disclose business models

March 2, 2026 - 20:37

A new legislative effort is taking direct aim at the practices of real estate wholesalers, mandating greater transparency in their business models. The proposed law seeks to protect vulnerable homeowners, particularly the elderly, from misleading or predatory tactics that have sparked concern in communities across the state.

Under the bill, individuals and companies engaged in wholesaling—the practice of contracting to buy a home and then assigning that contract to another buyer for a fee—would be required to provide clear, upfront disclosures. These would detail their role as a wholesaler, not the end buyer, and explicitly state the intended assignment fee or profit margin embedded in the transaction. Proponents argue that this sunlight is necessary to ensure homeowners fully understand the nature of the deal they are entering.

The drive for regulation stems from growing reports of homeowners, often seniors facing financial pressure, being convinced to sign contracts far below market value. Advocates for the bill state that by demystifying the wholesaling process, homeowners can make more informed decisions, potentially avoiding significant financial loss. The legislation represents a significant step toward consumer protection in a largely unregulated segment of the real estate market, aiming to balance business operations with the rights of property owners.