Is wholesaling legal in Kentucky?
Quick answer
Wholesaling is legal in Kentucky, but publicly marketing your contract requires a real estate license. House Bill 62, passed unanimously in 2023 and effective June 29, 2023, amended KRS 324.010 so that real estate brokerage includes advertising for sale an equitable interest in a purchase contract for real property, and limited that activity to licensees. Assigning a contract is not banned. What is restricted is advertising the contract to the public without a license, which is how many wholesalers find end buyers. Unsettled questions remain, especially whether marketing only to a private, closed buyers list counts as advertising; no formal Kentucky Real Estate Commission guidance on that point was located. KREC has reported multiple complaints alleging unlicensed activity tied to HB 62, and its materials describe unlicensed brokerage as a Class A misdemeanor for a first offense. Many Kentucky investors respond by double closing or partnering with a licensee.
Kentucky at a glance
- Status
- License required
- License required to wholesale?
- Yes — see requirements
- Seller cancellation / disclosure rights?
- No wholesaling-specific right found
- Key law
- KRS 324.010; KRS 324.020 (effective Jun 29, 2023)
- Regulator
- Kentucky Real Estate Commission (KREC), Kentucky Real Estate Authority
- Transfer tax
- Kentucky's transfer tax (KRS 142.050) is $0.50 per $500 of value declared in the deed, imposed on the grantor and collected by the county clerk; a deed cannot be recorded until it is paid.
- Closings
- Kentucky closings are commonly handled by real estate attorneys or title companies.
- Last reviewed
- Nov 6, 2026
What Kentucky requires from wholesalers
- Hold a Kentucky real estate license to advertise or publicly market an equitable interest in a purchase contract
- Assignments are not prohibited, but marketing the contract to the public without a license is
- Licensees must follow KREC advertising and disclosure rules
How to wholesale legally in Kentucky: step by step
- 1
Decide how you will find buyers before you sign. Advertising an equitable interest in a purchase contract is brokerage under KRS 324.010, so public posts, listing sites and blast marketing of a contract require a Kentucky license.
- 2
If you are unlicensed, consider partnering with a licensed agent who markets the deal under KREC's advertising rules, with compensation flowing through their brokerage rather than to you as an unlicensed party.
- 3
Treat a private buyers list cautiously. Whether sending a contract only to known buyers is 'advertising' is unsettled, so get advice before relying on that approach. A written opinion from Kentucky counsel is inexpensive insurance.
- 4
Alternatively, plan to double close. Taking title first means you market property you own, which falls outside the HB 62 language about equitable interests. You will need funds for the purchase and a closing agent for both transactions.
- 5
Account for the grantor-paid transfer tax of $0.50 per $500. On a double close you are the grantor on the second deed and the county clerk will collect it before recording.
- 6
Get licensed if wholesaling is your business: complete 96 hours of approved prelicense education, pass the PSI exam and affiliate with a Kentucky broker. Licensees must then follow KREC advertising and disclosure rules on every deal.
Seller protections and penalties in Kentucky
Penalties: Unlicensed brokerage is subject to KREC enforcement and penalties under KRS Chapter 324.
Assignment vs. double close in Kentucky
Kentucky's 2023 law shapes the exit choice more than any tax. An assignment still works legally, but finding the buyer is the problem: if you advertise your equitable interest without a license, you are engaged in brokerage. Licensed wholesalers or those working with a licensee can assign normally, with one deed recorded and the grantor-imposed transfer tax of $0.50 per $500 paid by the original seller unless the contract shifts it. A double close is the common unlicensed alternative. You purchase the property, then sell it as the owner, which means you are marketing real estate you hold title to rather than a contract interest. The cost is a second closing with an attorney or title company, a second transfer-tax payment where you are the grantor, and the need to fund your purchase. Because the county clerk will not record a deed until the tax is paid, build both payments into your numbers.
Transfer tax: Kentucky's transfer tax (KRS 142.050) is $0.50 per $500 of value declared in the deed, imposed on the grantor and collected by the county clerk; a deed cannot be recorded until it is paid.
Closings: Kentucky closings are commonly handled by real estate attorneys or title companies.
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 Kentucky
- Posting your contract on social media, listing sites or public ads without a license, the conduct HB 62 placed inside the definition of brokerage.
- Assuming a closed buyers list is exempt; no formal KREC guidance confirms that private marketing is not 'advertising'.
- Ignoring criminal exposure; KREC materials describe unlicensed brokerage as a Class A misdemeanor for a first offense and a Class D felony for later offenses.
- Trusting online claims of a 2026 Kentucky disclosure law with a 21-day cancellation right; no such law appears in the 2026 bill index.
Recent changes to Kentucky wholesaling law
HB 62 effective
Signed 2023-03-23 (House 94-0, Senate 35-0); advertising an equitable interest in a purchase contract became licensed brokerage.
Real estate licensing in Kentucky
Real estate licensing in Kentucky is overseen by Kentucky Real Estate Commission (KREC), Kentucky Real Estate Authority.
Kentucky sales associate applicants complete 96 hours of Commission-approved prelicense education (or six college credit hours in real estate) and pass the PSI exam's national and state sections.
Running the numbers on a Kentucky 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 Kentucky 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 Kentucky investor loans or our end-buyer financing guide.
Kentucky wholesaling FAQ
Is wholesaling legal in Kentucky?
Yes, but with a licensing catch. Since June 29, 2023, advertising an equitable interest in a purchase contract is real estate brokerage under KRS 324.010, so only licensees may publicly market contracts. Assignments themselves are not prohibited, and buying then reselling through a double close remains available.
Do you need a license to wholesale in Kentucky?
You need one to advertise or publicly market your contract interest. Unlicensed investors may still sign and assign contracts, but finding buyers through public marketing is restricted. A license requires 96 hours of approved prelicense education and passing the PSI exam. Partnering with a licensee is another route.
What did Kentucky HB 62 change for wholesalers?
HB 62 (2023 Ky. Acts ch. 84), signed March 23, 2023, added advertising an equitable interest in a purchase contract to the definition of real estate brokerage and limited that activity to licensees. It passed 94-0 in the House and 35-0 in the Senate and took effect June 29, 2023.
Can I market a wholesale deal to my buyers list in Kentucky?
That is unsettled. HB 62 restricts advertising, and no formal KREC guidance clarifies whether emailing a private list of known buyers qualifies. Many investors avoid the question by double closing or by working with a licensed agent. Speak with a Kentucky attorney before relying on a private-list approach.
What is the penalty for unlicensed brokerage in Kentucky?
KREC enforces KRS chapter 324 and can seek an injunction in circuit court. Commission materials describe unlicensed brokerage as a Class A misdemeanor for a first offense and a Class D felony for subsequent offenses. KREC has reported complaints alleging unlicensed activity tied to HB 62.
How much is the transfer tax in Kentucky?
KRS 142.050 sets the tax at $0.50 for each $500 of value declared in the deed. It is imposed on the grantor and collected by the county clerk, and a deed cannot be recorded until it is paid. On a double close you pay it as grantor on the resale.
Is double closing legal in Kentucky?
Yes. Buying a property and reselling it is ordinary ownership activity, and HB 62's language addresses advertising an equitable interest in a purchase contract, not marketing property you own. Expect two closings, two transfer-tax payments and the need to fund your purchase before you resell.
Statutes, rules and sources
KRS 324.010; KRS 324.020
Real estate brokerage definitions and license requirement (as amended by 2023 HB 62, Acts ch. 84)
Effective Jun 29, 2023Read the text
- Kentucky General Assembly - 2023 HB 62 record
- 2023 Ky. Acts ch. 84
- KRS 324.010
- KRS 142.050 real estate transfer tax (Justia)
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 Kentucky real estate attorney before you contract.
Neighboring states
- Illinois wholesaling laws License required
- Indiana wholesaling laws Wholesaling-specific rules
- Missouri wholesaling laws Wholesaling-specific rules
- Ohio wholesaling laws Wholesaling-specific rules
- Tennessee wholesaling laws Wholesaling-specific rules
- Virginia wholesaling laws License required
- West Virginia wholesaling laws General license law