Is wholesaling legal in DC?
Quick answer
Yes, wholesaling is legal in the District of Columbia, and there is no D.C. statute or regulation aimed specifically at it. The rules that apply are the general real estate licensing provisions in D.C. Code Title 47, Chapter 28, including § 47-2853.161 on the broker's scope of practice. Negotiating or marketing a property for someone else for a fee requires a D.C. license, and licensees may not pay fees to unlicensed people for broker services. Searches found no 2025-2026 D.C. Council wholesaling bill; B26-0758, the Housing Investment Protection Act of 2026 introduced in July 2026, surfaced but was not confirmed to address wholesaling. Two other D.C. features matter more to wholesalers than they would elsewhere: the city's high transfer and recordation taxes, and TOPA rights for tenants. D.C. Law 26-187, effective September 26, 2026, also expands DLCP's consumer-protection enforcement generally.
We're still confirming some details for District of Columbia against the enacted text. Check the statutes and sources below before relying on this summary.
District of Columbia at a glance
- Status
- General license law
- License required to wholesale?
- Not for wholesaling as such; general license law applies
- Seller cancellation / disclosure rights?
- No wholesaling-specific right found
- Key law
- D.C. Code § 47-2853.161 et seq.
- Regulator
- D.C. Real Estate Commission, administered by the Department of Licensing and Consumer Protection (DLCP)
- Transfer tax
- D.C. charges both a transfer tax and a recordation tax on deeds: each is 1.1% of the price on residential sales under $400,000 and 1.45% at higher prices. By custom the seller pays the transfer tax and the buyer pays the recordation tax, but the contract controls.
- Last reviewed
- Nov 6, 2026
What DC requires from wholesalers
- Act as a principal and market only your contract interest, not the property
- Do not perform broker activities for others for a fee without a D.C. license
- Licensees may not pay fees to unlicensed persons for broker services
- Disclose your intent to assign in the purchase contract (best practice)
How to wholesale legally in DC: step by step
- 1
Contract as the buyer in your own name or entity, with an express assignment clause. In D.C. your exemption from licensing depends on acting for yourself, not marketing a property for its owner.
- 2
Do not take a fee for bringing a seller and buyer together on a property you do not control, and do not ask a licensee to pay you a referral fee. Both run into D.C.'s licensing rules.
- 3
Find out who lives in the property before you sign. If it is tenant-occupied, TOPA may give tenants notice rights or a purchase right that can delay or block a resale, so ask the seller for leases and occupancy details.
- 4
For single-family homes, check whether any tenant claims elderly or disabled status, which preserves the TOPA purchase right. The owner must handle the required notices, and secondary sources describe tight deadlines after an offer is received.
- 5
Estimate both deed taxes before choosing an exit. On a $500,000 sale the transfer tax and recordation tax are each 1.45%, or $7,250 apiece, which often decides whether a double close makes sense at all.
- 6
Disclose to the seller in writing that you may assign the contract, and tell the end buyer what you hold. D.C. does not require it, but clear disclosure helps given DLCP's expanded consumer-protection authority from September 2026.
Seller protections and penalties in DC
Penalties: General penalties for unlicensed real estate activity under D.C. Code Title 47, Chapter 28; consumer-protection enforcement by DLCP.
Assignment vs. double close in DC
D.C.'s deed taxes make the choice between assignment and double close unusually expensive to get wrong. Every recorded deed carries both a transfer tax and a recordation tax, each 1.1% below $400,000 and 1.45% above, so the combined charge is 2.2% to 2.9% of the price per deed. With an assignment, one deed is recorded and the taxes fall on the original seller and your end buyer by custom. With a double close, you are the buyer on the first deed and the seller on the second, so by custom you would pay recordation tax going in and transfer tax going out, potentially close to 3% of the price, plus cash to complete the first purchase. TOPA applies to either structure when the home is tenant-occupied: the owner's notice duties and any tenant purchase right can add weeks or months, which matters if your contract has a short closing date.
Transfer tax: D.C. charges both a transfer tax and a recordation tax on deeds: each is 1.1% of the price on residential sales under $400,000 and 1.45% at higher prices. By custom the seller pays the transfer tax and the buyer pays the recordation tax, but the contract controls.
Local rules: Tenant-occupied property may be subject to the Tenant Opportunity to Purchase Act (TOPA); most single-family homes have been exempt from the purchase right since 2018, but elderly and disabled tenants keep it and owners still have notice duties.
Compare your net both ways with the double close calculator. If you double close, transactional funding can cover the A-to-B purchase.
Compliance mistakes to avoid in DC
- Contracting on a tenant-occupied property without checking TOPA status, then finding tenant notice rights or a purchase right that stall the deal.
- Marketing a property as if you represent the owner, which can be broker activity requiring a D.C. license under Title 47, Chapter 28.
- Asking a licensed agent to pay you a referral fee; licensees may not pay unlicensed persons for broker services.
- Underestimating deed taxes on a double close, where by custom you may bear recordation tax on your purchase and transfer tax on your resale.
- Assuming low enforcement; D.C. Law 26-187 broadened DLCP's consumer-protection enforcement as of September 26, 2026, which can reach misleading seller solicitations.
Real estate licensing in DC
Real estate licensing in DC is overseen by D.C. Real Estate Commission, administered by the Department of Licensing and Consumer Protection (DLCP).
Salesperson applicants complete 60 hours of pre-licensing education from a Commission-approved provider, pass the national and D.C. exam portions with at least 75%, and need a sponsoring broker to activate the license.
Running the numbers on a DC deal
Compliance is half the job; pricing is the other half. Use the wholesale MAO calculator to work backward from your end buyer's costs, estimate value with the ARV calculator, budget repairs with the rehab cost estimator, and sanity-check with the 70% rule. New to the math? Start with how to calculate MAO.
Most DC end buyers use a lender. Jaken Finance Group funds fix-and-flips up to 100% of total cost on qualified deals, typically in 7–10 business days on a complete file — see DC investor loans or our end-buyer financing guide.
DC wholesaling FAQ
Do you need a license to wholesale in Washington, D.C.?
Not if you act as a principal assigning your own contract. D.C. has no wholesaling statute. Under D.C. Code Title 47, Chapter 28, performing broker activities for others for a fee, such as marketing or negotiating a sale for an owner, requires a license. Wholesalers who stay in the buyer's role generally fall outside that definition.
Is there a wholesaling law in D.C.?
No wholesaling-specific law was found. Searches found no 2025-2026 D.C. Council wholesaling bill. B26-0758, the Housing Investment Protection Act of 2026, was introduced on July 10, 2026, but it was not confirmed to address wholesaling. Check the Council's legislative system for updates, since D.C. bills can move quickly.
Does TOPA apply to wholesale deals in D.C.?
It can, when the property is tenant-occupied. Since a 2018 amendment, most single-family homes are exempt from the tenant purchase right, but elderly and disabled tenants who claim that status keep it, and owners still have notice duties. Multi-unit buildings have broader TOPA rights. Confirm requirements against current DHCD forms and the D.C. Code.
How much are transfer and recordation taxes in D.C.?
On residential property, the transfer tax and recordation tax are each 1.1% of the price under $400,000 and 1.45% when the price is higher. By custom the seller pays the transfer tax and the buyer pays the recordation tax, though the contract can change that. Some buyers qualify for reduced recordation tax.
Can a wholesaler get paid by a real estate agent in D.C.?
No. D.C. licensees may not pay fees to unlicensed persons for broker services. A wholesaler who brings a deal to an agent and expects a share of the commission is asking the agent to break licensing rules. Your compensation should come only from your own contract, through an assignment fee or resale.
How do you get a real estate license in D.C.?
Complete 60 hours of pre-licensing education from a provider approved by the D.C. Real Estate Commission, then pass the national and D.C. portions of the exam with at least 75%. A sponsoring broker is needed to activate a salesperson license. Fees should be confirmed with DLCP, since sources differ.
Does a wholesaler need a D.C. license to market a contract?
Generally no, if you are marketing your own contract rights rather than the property on the owner's behalf. The licensing line is crossed when you negotiate or market a sale for someone else for a fee. Describe your offering as an assignable purchase contract, avoid presenting yourself as the seller's representative, and keep your compensation tied to your own contract.
Statutes, rules and sources
D.C. Code § 47-2853.161 et seq.
Real estate brokers - scope of practice and licensing (Title 47, Chapter 28, Subchapter I-B)
- D.C. Code § 47-2853.161 (D.C. Council)
- D.C. Law 26-187, Enhancing Consumer Protection Procedures Amendment Act of 2026
- Real Estate Skills: Is Wholesaling Legal in Washington DC?
- D.C. Office of the Tenant Advocate: TOPA Single-Family Fact Sheet
Last reviewed Nov 6, 2026. This page summarizes public sources for general information and isn't legal advice. Local rules may also apply — confirm with a licensed DC real estate attorney before you contract.