Bill > AB1850

This bill clarifies and regulates real estate wholesaling, which is the practice of entering into a contract to buy a property with the intention of selling that contract to another buyer for a profit, rather than actually purchasing the property oneself. Specifically, it expands the definition of a real estate broker to include individuals who engage in this type of contract flipping for compensation, and it requires anyone acting as a wholesaler to hold a valid real estate license. Furthermore, the bill mandates that wholesalers must clearly disclose in writing to property owners that they do not intend to take title to the property and are instead assigning or selling their contract rights. Advertisements or offers to sell or assign such contracts must also clearly state that the offeror does not hold legal title. Failure to provide these disclosures is considered a substantial misrepresentation and can lead to disciplinary action against the licensee.

Budget and Finance, Business and Industry, Justice

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