Wholesalers often avoid licensing by claiming buyer status and assigning contracts. Does this loophole let them profit without needing a real estate license?
Real estate wholesaling often skirts licensing requirements because most activities involve assigning contracts rather than brokering actual property sales. In many cases, the law differentiates between making an assignment and engaging in a traditional brokerage relationship where compensation is directly tied to property transactions. My experience in this field shows that this distinction hinges on technical definitions in state regulations. Essentially, if a wholesaler is acting as a principal by entering into a contract and then assigning that contract to another buyer, they remain outside the typical broker-license framework as long as they carefully avoid actions that would be construed as acting as an agent.
i think its legal bc lots of states see assignin contracts as different from traditional broker work. if u’re simply shiftin deals without acting as a traditional agent, you avoid the licensing trap, just playin by state regs.