What is real estate wholesaling?
Wholesaling means signing a contract to buy your house, then selling that contract to someone else for a fee instead of buying the house yourself. The wholesaler never takes title. They find an end buyer, "assign" their spot in your contract, and keep the difference.
Delaware's new law defines wholesaling as seeking a contract with an owner while intending to profit by marketing or assigning the equitable interest in the agreement of sale. It covers 1–4 family homes and residential lots. It does not cover sheriff sales or bankruptcy auctions.
Wholesaling is not illegal. The problem is that sellers often did not know their buyer was a middleman, how much the middleman would make, or that the "buyer" might never close. SB 201 is designed to fix that.
Here is how a typical wholesale deal works. A wholesaler signs a contract with you at one price. They then market the contract to investors who pay a higher price. At closing, the investor pays the higher amount, you receive the contract price, and the wholesaler keeps the difference as an assignment fee. You never have a contract with the investor, and you may never meet them until settlement.
Key dates for SB 201
The seller protections are already in effect; the license requirement starts in early 2027.
| Date | What happens |
|---|---|
| June 1, 2026 | Gov. Meyer signs SB 201 |
| About Aug 30, 2026 (90 days later) | Seller protections take effect under 24 Del. C. §2940: disclosure form and right to cancel |
| About Feb 26, 2027 (270 days later) | Wholesalers must hold a Delaware license |
The law also raised the Real Estate Guaranty Fund cap from $25,000 to $50,000 per claim. People who buy homes for their own account, and not as a wholesaling business, are exempt from the license rule.
Your 21-day right to cancel
If you sign with a wholesaler, you can cancel until midnight of the 21st calendar day after signing, or until the house is conveyed, whichever comes first.
- If the wholesaler did not give you the required disclosures, you can cancel any time before conveyance.
- You cannot waive this right, even if the contract says you do.
- Any money you paid must be refunded within 10 business days.
- You owe no damages for canceling.
This window affects timing. A wholesale deal may not settle quickly, because the wholesaler still has to find an end buyer. See our Delaware closing timeline for how this fits into a sale.
Count the days carefully. The window runs on calendar days, not business days, so weekends and holidays count. Write down the date you signed and mark day 21 on your calendar. If you want to cancel, do it in writing and keep a copy, so there is a clear record of the date.
What the wholesaler must disclose in writing
A wholesaler must give you the Delaware Real Estate Commission's disclosure form, available in English, Spanish, and Haitian Creole. The form tells you:
- This is a wholesale transaction.
- The wholesaler plans to assign the contract for a fee and will not take title.
- Their profit may be substantial and may not be known to you.
- You have the right to get an appraisal, hire your own real estate licensee, and talk to a lawyer.
- A caution about signing any power of attorney.
- Your right to cancel.
Read the form slowly and ask questions about anything unclear. Because the wholesaler's profit may be substantial and unknown to you, it is reasonable to ask what the end buyer is paying. You are not required to accept the first number, and you can take the contract to your own agent or attorney before you sign.
How to tell if your buyer is a wholesaler
The clearest sign is an assignment clause: words like "and/or assigns" after the buyer's name. Other signs:
- A very small earnest money deposit.
- A long inspection or "due diligence" period with easy exits for the buyer.
- Strangers showing up to tour the house after you sign.
- The buyer can't name the lender or show proof of funds.
Questions to ask any cash buyer:
- Will you take title in your own name, or might you assign this contract?
- Can you show proof of funds in the buyer's name?
- Which settlement attorney will handle closing?
- How much earnest money, and when does it become non-refundable?
- Can I see homes you have bought and renovated?
Compare any offer against listing with an agent. Our cash vs. list calculator helps you see the gap.
Selling near the border: Pennsylvania and Maryland
Pennsylvania and Maryland also regulate wholesaling, with different rules.
| State | Law | Key seller protection |
|---|---|---|
| Delaware | SB 201 (2026) | 21-day cancel; disclosure form; license from ~Feb 2027 |
| Pennsylvania | Act 52 of 2024 (eff. Jan 4, 2025) | Wholesalers need a PA real estate license; cancel within 30 days of signing or before conveyance |
| Maryland | HB 124/SB 160 of 2025 (eff. Oct 1, 2025) | Written notice before contract that buyer "may assign the contract"; rescind before closing if missing; no license |
In Pennsylvania, buyers who take title and resell are exempt. If you own in Chester, PA or Elkton, MD, the local state's rules apply.
Your other options besides a wholesaler
A wholesaler is only one kind of buyer; compare at least two or three paths before you sign.
- List with a licensed agent to reach retail buyers, usually for a higher price but with showings, repairs, and more time.
- Sell to a direct buyer who takes title in their own name and pays with their own funds.
- Get an appraisal so you know what the house is worth before you negotiate; the disclosure form reminds you of this right.
- Talk to a lawyer if you are facing foreclosure, have title issues, or feel pressured.
Read our cash vs. traditional sale guide to see how the numbers usually compare.
Where a direct buyer fits
Ask any cash buyer, including us, whether they will close in their own name. If a buyer is a wholesaler, the protections above apply to your contract.
A cash offer is below what a fully fixed-up home might bring on the open market; that is the trade-off for speed and no repairs. If you want closer to retail, ask about Fix & List. Questions? Call (302) 798-8655.
General information, not legal or tax advice.
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Get My Written Offer Call (302) 798-8655Frequently asked questions
Is wholesaling legal in Delaware?
Yes. SB 201 regulates it rather than banning it. Wholesalers must give a disclosure form and honor a 21-day cancel right, and starting about February 26, 2027, they must be licensed.
How long do I have to cancel a wholesale contract in Delaware?
Until midnight of the 21st calendar day after signing, or until conveyance, whichever comes first. If you never got the required disclosures, you can cancel any time before conveyance.
Can a wholesaler make me waive the 21-day cancel right?
No. The right to cancel cannot be waived, and you owe no damages for using it.
Do I get my deposit back if I cancel?
Yes. Any money you paid must be refunded within 10 business days.
Does the law apply to every cash buyer?
It applies to people in the business of wholesaling. Buyers purchasing for their own account, not as a wholesaling business, are exempt from the license requirement. Sheriff and bankruptcy auctions are excluded.
What does 'and/or assigns' mean in my contract?
It means the buyer can transfer the contract to someone else. Ask directly whether they plan to assign it and get the answer in writing.
Sources
- Delaware SB 201 bill detail
- DE Real Estate Commission wholesale disclosure form
- Pennsylvania Act 52 of 2024
- Maryland 2025 Chapter 508 (HB 124)
General information, not legal, tax, or financial advice. Laws, fees, and schedules change. Confirm with the office named or your attorney.