Some excerpts on wholesaling:
(44) "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.
Section 40-57-350. (A) A real estate brokerage firm that provides services through an agency agreement for a client is bound by the duties of loyalty, obedience, disclosure, confidentiality, reasonable care, diligence, and accounting as set forth in this chapter.
Pursuant to the aforementioned duties owed to a client, a real estate brokerage firm and its subagents are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling.
(5) Pursuant to the aforementioned duties owed to a customer, a real estate brokerage firm and its subagents are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling.
Section 40-57-240. This chapter does not apply to:
(1) the sale, lease, or rental of real estate by an unlicensed owner of real estate who owns any interest in the real estate if the interest being sold, leased, or rented is identical to the owner’s legal interest;
(2) an attorney at law acting within the scope of his duties involved in the legal representation of a client/owner;
(3) agencies and instrumentalities of the state or federal government and their employees acting within the scope of their official duties;
(4) foresters registered under Chapter 27, Title 48, if the sale of any land is merely incidental to the sale of timber on the land; or
(5) court-appointed receivers and trustees while acting within the scope of their appointment.
Posted by: Byron King on 05/22/24 (This information is only accurate as of 05/22/24. You must contact SCR for updates and changes to this information after 05/22/24 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.