Is wholesaling real estate illegal in Virginia?

[Duncan Thompson]

I am starting out wholesaling but would like to know if it is illegal in Virginia?

I also would like an opportunity to bird dog for any real estate investors to understand the industry.

[Patti Robertson]

Wholesaling is perfectly legal in Virginia. That said, many "wholesaler" operate illegally because they don't understand the brokerage laws. When you wholesale, you are selling YOUR position in the contract. Your contract gives you "equitable interest", which gives you the right to sell that interest. You can't however "joint venture" or "partner" with another wholesaler and market a property they have under contract. This is considered brokering real estate and requires a license. To illustrate the point that selling your position in the contract is legal, the Hampton Roads MLS, REIN, even has an allowance for a contract holder to list their contract for sale. At the time I am typing this, there are 84 active wholesale listings in the MLS, and 26 pending listings.