State-by-State Guide: Wholesaling Laws and Regulations in 2025

Introduction

Is wholesaling real estate legal in your state? The answer depends entirely on where you operate.

In 2025, some states have passed new regulations that directly affect whether you can wholesale without a license. Others have updated the rules around marketing properties or assigning contracts.

This guide breaks down the current legal status of wholesaling in each state so you can operate with confidence, avoid fines, and stay compliant. Bookmark this if you wholesale or plan to expand into new markets.

What Is Wholesaling Real Estate?

Wholesaling is a real estate investing strategy where you secure a property under contract and assign that contract to another buyer for a fee. You do not take ownership of the property.

Most wholesalers make money from assignment fees, but depending on state law, how you advertise or market that contract can land you in legal trouble if done incorrectly.

Key Legal Considerations

• Assignment legality: In most states, you can assign contracts without a license, but not all.
  
• Marketing rights: Some states prohibit marketing the property itself unless you own it or are licensed.
  
• Disclosure requirements: Several states require clear disclosure that you are not the property owner.
  
• Double closings: In stricter states, wholesalers double close to avoid assignment issues.
  

Wholesaling Legal Status by State (2025)

This table summarizes the legal status across all 50 states based on current laws and major legal updates.

This table is updated as of Q2 2025. Laws are changing quickly, so be sure to verify the latest information with a legal professional or your local real estate commission.

What Changed in 2024 and 2025?

Recent years saw a spike in state-level enforcement due to bad actors in wholesaling. Common updates include:

• Illinois began enforcing limits on unlicensed assignments
  
• Oklahoma passed laws requiring a license for any public property advertising
  
• Arizona strengthened its advertising laws and licensing requirements
  
• Wholesalers in New York were fined for marketing properties they didn’t own
  

Expect more states to tighten regulations as wholesaling continues to grow in popularity.

How to Stay Compliant

• Only market the contract to purchase, not the property itself
  
• Use disclosure clauses in your contracts clearly stating your assignment intent
  
• Do not present yourself as a broker or agent unless licensed
  
• Use double closings if in a highly regulated state
  
• Stay updated by following real estate attorney blogs and state commissions
  

How REsimpli Helps You Stay Legal

REsimpli was designed to keep your wholesaling operations clean, organized, and legally sound. With tools like:

• Contract templates with customizable disclosure language
  
• Tagging features for assignment, double close, or direct purchase
  
• Buyer CRM to avoid illegal public marketing
  
• Activity tracking and e-signature for audit-ready documentation
  

REsimpli helps you document every part of your process so you can defend your actions and scale legally.

Conclusion

Wholesaling is still legal in most states, but the way you do it matters more than ever. As more laws roll out, it is not just about finding deals and assigning contracts. It is about knowing your state’s rules and following them to the letter.

If you want to avoid the legal gray area and stay two steps ahead of compliance changes, use this guide as your starting point and build your business on systems that protect you.