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Wholesaling
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Updated about 6 years ago,

User Stats

25
Posts
13
Votes
Irwin Haddox
  • Delaware City, DE
13
Votes |
25
Posts

My lawyer says wholesaling is illegal. Quote Below

Irwin Haddox
  • Delaware City, DE
Posted

"Irwin,

I've spent some time thinking about your proposed business model and, also, doing some research and, taking a conservative approach, have concluded that you would be selling real estate and therefore would be subject to real estate sales licensing laws. When you sign a contract to purchase property, you acquire an equitable interest in the property and it is that equitable interest, that is, the right to compel conveyance of the legal [or record] title that you are selling, even if you state you are just assigning a contract right. Under the real estate brokers' law, Title 24, Chapter 29 of the Delaware Code, a person who provides real estate services must be licensed. The statute provides that "real estate services shall also include the marketing and advertising of properties for sale". That is how you are going to find your buyers.

I know this is not the answer you were looking for but you did indicate you want to stay out of trouble."

Now how do I proceed? Do I need a brokers license or a real estate agent license? What are your thoughts?

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