Do You Need a License to Wholesale Real Estate in Illinois?

Introduction

Illinois has become one of the most talked-about states in the wholesaling world. Why? Because it is one of the few states that directly limits how many wholesale deals you can do without a real estate license.

If you are operating in Illinois or plan to start, understanding the current legal framework is essential to staying compliant and avoiding fines.

Is Wholesaling Legal in Illinois?

Yes, wholesaling is legal in Illinois. However, there are strict limits.

The Illinois Real Estate License Act (RELA) was amended to restrict unlicensed individuals from conducting multiple wholesale transactions in a year. The law was designed to prevent unlicensed individuals from behaving like real estate brokers without oversight.

What Is the Law in Illinois?

The amendment passed in 2019 defines the brokering of real estate to include marketing, advertising, and selling property or any interest in real property, including assigning contracts.

Under the law:

• You can complete only one wholesale transaction per year without a license
  
• To do more, you must be a licensed real estate broker or work with one

This includes assigning contracts and marketing purchase rights publicly.

What Are Your Options as a Wholesaler?

You have three main paths if you want to wholesale legally in Illinois:

1. Get your real estate license
   This gives you the right to market and assign properties legally as a broker.
   
2. Work with a licensed broker
   Partner with a brokerage to handle all public-facing marketing and negotiations.
   
3. Use double closings
   You close on the property yourself and then resell it to your end buyer. This avoids assignment language altogether.

How to Operate Safely

• Avoid marketing properties unless you have equitable title or are licensed
  
• Use contracts that clearly disclose your role as a buyer intending to assign
  
• Keep detailed records and documentation of every transaction
  
• Use tools like REsimpli to track your deal source, contract type, and assignment strategy

Final Notes

Illinois is not anti-wholesaler. It is just a state that takes its real estate laws seriously. If you are prepared, ethical, and transparent, you can still do business successfully.

Do not ignore the rules. Adapt to them and build your operation on a solid legal foundation.