Bill > AB1850

This bill expands the definition of a real estate broker to include individuals who enter into or offer to enter into contracts or options to purchase real property with the intention of selling, assigning, or marketing those contracts or options to others for profit, a practice commonly known as wholesaling. It explicitly defines "wholesaling" as this process of acquiring contracts with the intent to resell them. Crucially, the bill mandates that anyone engaging in wholesaling must hold a valid real estate license. Furthermore, it requires wholesalers to provide written disclosure to property owners that they do not intend to take title to the property themselves but rather plan to assign or sell their contract rights, potentially for a profit, before the property's closing. Any advertisements or offers to sell or assign such contracts must also clearly state in writing that the offeror does not hold legal title to the property. These changes are intended to regulate wholesaling activities and ensure transparency for property owners.

https://leginfo.legislature.ca.gov/faces/billStatusClient.xhtml?bill_id=202520260AB1850