Bill > SB201

This bill amends Delaware's real estate law to regulate "wholesaling," a practice where individuals enter into a property sale agreement with the intent to quickly market and assign that agreement to another buyer for a profit. The legislation defines wholesaling as a real estate service that requires a real estate license, specifically focusing on residential properties with 1-4 units. The bill introduces several key provisions: First, it clarifies that wholesaling activities must be performed by licensed real estate professionals to protect consumers from potential fraud. Second, it establishes new requirements for wholesale transactions, including mandatory disclosure forms in English, Spanish, and Haitian Creole that inform sellers about the nature of the transaction and their rights. Third, the bill grants sellers a 21-day right to cancel such agreements without penalty, requiring brokers to refund any payments within 10 business days of cancellation. Additionally, the bill increases the Delaware Real Estate Commission's Guarantee Fund from $25,000 to $50,000 to provide more consumer protection, and expands the fund's coverage to include owners of brokerage organizations. The law will take effect in stages, with different sections becoming active 0, 90, and 270 days after enactment, allowing time for implementation and education about the new requirements.

Business and Industry

https://legis.delaware.gov/BillDetail?LegislationId=142673