Can i wholesale Purchase agreements in CA without a Real Estate License.
2 attorney answers
In addition to Mr. Areshenko's comments, I add that you might also be violating a number of security laws depending on the number of transactions and how you market your contracts. If you want to purchase and sell real estate as a business, obtain a broker's license.
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Most likely not. And surely no attorney is going to tell you it’s all safe based on a couple sentences of information. I receive this question a few times a week. Wholesaling as I understand it (I’m also a broker) is a get rich quick scheme wherein you act like a licensed broker (but with no license) with the trivial step of having a purchase agreement in place. As an aside I have never heard of a wholesaler actually buying the property if it couldn’t sell, the contract is truly worthless to the property seller. So, the “wholesaler” is really just a cheap crook selling real estate illegally without a license. Adding to that, and a bit more subjective, the wholesaler’s value is entirely unclear. Meaning, why would someone agree to sell their house for substantially less than it’s worth, thus providing the profit margin to the useless wholesaler who provided no value? Of course, it suggests the seller was taken advantage of and swindled.
I would stay away from such get rich quick schemes. Don’t contract to buy a property you’re not going to buy. Don’t act as a broker when you’re not.
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