Learn how to professionally and legally earn compensation for finding properties and connecting buyers.

Wholesaling is often touted as the easiest way to start a real estate career, by investing your time without any money down. If this sounds too good to be true, the Texas legislature has passed significant language governing the advertisement of equitable interests and how people can collect commissions from real estate sales. This method requires careful due diligence to ensure compliance with applicable real estate commission and brokerage laws. Speak with an experienced lawyer who will provide the necessary forms and advertising guidelines.

A wholesaler is someone who contracts with a seller to buy a property for a fixed price and while still under contract with the seller, assigns the contract to another buyer who will brings funds to close and take title. A wholesaler is a middleman who hopes to identify a property worth more to an end buyer than what the seller is willing to sell for now. The wholesaler can make profit one of two ways, 1) either by charging a fixed or percentage assignment fee in exchange for assigning his interest to the end buyer or 2) the wholesaler can capture the full difference between the contract price and the sale price to the end-buyer ("double-close"). A wholesaler’s actions can constitute actions that require a real estate license if certain procedures are not strictly followed. A new Senate Bill from 2017 seeks to clarify certain actions by a wholesaler that do not require a real estate license.

  • a) A person may acquire an option or an interest in a contract to purchase real property and then sell or offer to sell the option or assign or offer to assign the contract without holding a license issued under this chapter if the person: does not use the option or contract to purchase to engage in real estate brokerage; and discloses the nature of the equitable interest to any potential buyer.
  • (b) A person selling or offering to sell an option or assigning or offering to assign an interest in a contract to purchase real property without disclosing the nature of that interest to a potential buyer is engaging in real estate brokerage.
[A] person selling an option or assigning an interest in a contract to purchase real property must disclose to any potential buyer that the person is selling only an option or assigning an interest in a contract and that the person does not have legal title to the real property.

Tex. Prop. Code § 5.086 (West 2017).

Penalties for Noncompliance

Section 1101.758 Texas Occupations Code

  • (a) A Person commits an offense if the person acts as a broker or sales agent under this Chapter without holding a certificate.
  • (b) An offense under this Section is a Class A Misdemeanor.
This would be a Class A misdemeanor for EACH OFFENSE. Multiple Class A Misdemeanors can result in a Felony Charge.

This package includes:

  • Questionnaire of prior experience, property details
  • 30 minute call with a Super Host attorney
  • Local City Regulations
  • Best Practices for a successful listing (HOA compliance, etc.)
  • Master or Sub Lease for re-letting properties