Legal Issues with Wholesaling in D.C.

[Kasey Nordeen]

I'm very interested in starting a part-time wholesaling operation in D.C., but I have some questions to pose to experienced wholesalers and investors in the area. 

I've read about how Ohio and some other states are cracking down on wholesalers, claiming that they're acting as a real estate broker without a license. 

Many states seem to define "real estate broker" just like D.C. does: D.C. Code 47-2853.161 defines it as someone who "for a fee, commission, or other valuable consideration, lists for sale, or sells, exchanges, purchases, rents, or leases property." 

Now, there are about 10 different ways to interpret most statutes, and there do not seem to be any judicial decisions on this statute that would offer any guidance as to whether a wholesaler constitutes a "real estate broker." So, until this issue is actually litigated, whether or not wholesaling is currently illegal in D.C. basically depends on how the D.C. Real Estate Commission chooses to treat it.

I'm not going to start a wholesaling business if there is any significant chance that it is, or in the near future may become, illegal. My questions are: Does anyone know if the D.C. Real Estate Commission has taken a stance on wholesaling? If so, do they actually take action against wholesalers? Have any wholesalers on here run into any legal issues with the D.C. Real Estate Commission?