Is wholesaling legal in Louisiana?
Quick answer
Yes, wholesaling remains legal in Louisiana, but since August 1, 2026 it is regulated for homes of one to four units. Act 807 of 2026 (HB 468) amended the Louisiana Real Estate License Law to define wholesaling and enacted La. R.S. 37:1448.5. Before each related contract is signed, a wholesaler must give the seller a prominent written disclosure, include the Commission's mandatory cancellation notice, and post an earnest-money deposit held in escrow, reported at a minimum of 1% of the price. A Senate amendment pulled certain back-to-back or simultaneous closings into the definition when the wholesaler does not supply all the funds to buy from the original seller. Contracts completed before August 1, 2026 are excluded. Several details come from summaries rather than the enrolled act, including the reported five-day rescission period and $5,000-per-violation penalty, so read Act 807 and the current LREC form before signing.
Louisiana at a glance
- Status
- Wholesaling-specific rules
- License required to wholesale?
- No wholesaler-specific license; disclosure rules apply
- Seller cancellation / disclosure rights?
- Yes — see seller protections
- Key law
- La. R.S. 37:1430 et seq.; La. R.S. 37:1448.5 (effective Aug 1, 2026)
- Regulator
- Louisiana Real Estate Commission (LREC)
- Transfer tax
- Louisiana has no statewide real estate transfer tax, and a 2011 constitutional amendment bars new ones. New Orleans keeps a grandfathered documentary transaction tax, reported as a flat $325, though sources differ on how it is calculated.
- Closings
- Under Louisiana's civil-law system, a sale of immovable property is usually executed as an authentic act signed before a notary public and two witnesses.
- Last reviewed
- Nov 6, 2026
What Louisiana requires from wholesalers
- Give the seller a prominent written wholesaling disclosure before executing each related contract or agreement
- Include the LREC 'Wholesaling Residential Real Property Mandatory Cancellation Notice' in the contract (use the current Commission form)
- Post an earnest-money deposit held in escrow (reported minimum 1% of purchase price)
- Treat double/back-to-back closings as wholesaling if you do not provide all funds to close with the original seller
- Applies to residential real property (1-4 units); contracts completed before 2026-08-01 are excluded
How to wholesale legally in Louisiana: step by step
- 1
Download the current 'Wholesaling Residential Real Property Mandatory Cancellation Notice' from LREC's Mandatory Forms section. The Commission published it July 28, 2026 and urges users to confirm they have the latest version.
- 2
Draft your seller disclosure as a standalone, prominent document and deliver it before the seller signs the purchase agreement and before every related contract, including any assignment. Keep signed copies of each delivery.
- 3
Post an earnest-money deposit with an escrow holder. The reported minimum is 1% of the purchase price; verify the exact figure in Act 807 before setting your deposit. Keep the escrow receipt in your file.
- 4
Calendar the seller's cancellation window, reported as five days, and do not market or assign until it has passed or you understand how cancellation affects your end buyer. Tell end buyers about the timing.
- 5
If you double close, decide whether you will provide all funds for the first purchase yourself. If not, Act 807 treats the back-to-back closing as wholesaling, with the same disclosure duties.
- 6
Coordinate with the closing notary early. Louisiana sales are typically passed as authentic acts before a notary and two witnesses, so give the notary copies of your disclosure, cancellation notice and escrow receipt with the contract.
Seller protections and penalties in Louisiana
- Seller may cancel/rescind the wholesaling agreement within the statutory window (reported as 5 days) with return of deposit as provided in the Act
- Mandatory pre-contract written disclosure and cancellation notice
Penalties: Enforced by the Louisiana Real Estate Commission; civil penalties reported up to $5,000 per violation.
Assignment vs. double close in Louisiana
Louisiana's 2026 law deliberately narrows the gap between the two exits. An assignment of a contract on a 1-4 unit home is plainly wholesaling, so the written disclosure, mandatory cancellation notice and escrowed deposit apply before each related agreement. A double close is no automatic escape: the Act reaches back-to-back or simultaneous closings in which the wholesaler does not provide all the funds needed to close with the original seller. Only a purchase you fully fund yourself is likely to fall outside that definition, and even then confirm the language in Act 807. On taxes, Louisiana imposes no statewide transfer tax, so a second act of sale mainly adds notary, title and recording costs. In New Orleans, each transfer may also trigger the grandfathered documentary transaction tax, doubling that cost on a double close. Because the notary passes the act of sale, expect your disclosure and cancellation paperwork to be checked as part of the closing file.
Transfer tax: Louisiana has no statewide real estate transfer tax, and a 2011 constitutional amendment bars new ones. New Orleans keeps a grandfathered documentary transaction tax, reported as a flat $325, though sources differ on how it is calculated.
Closings: Under Louisiana's civil-law system, a sale of immovable property is usually executed as an authentic act signed before a notary public and two witnesses.
Local rules: Orleans Parish transfers carry the city's grandfathered documentary transaction tax; confirm the current amount and exemptions with the Orleans Parish clerk or closing notary.
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 Louisiana
- Using an outdated or homemade cancellation notice instead of LREC's current mandatory form for contracts signed on or after August 1, 2026.
- Treating a back-to-back closing as exempt when you do not supply all the funds to buy from the original seller.
- Holding earnest money yourself instead of in escrow, or depositing less than the reported 1% minimum.
- Giving the disclosure only once; the Act requires it before each related contract or agreement.
- Assuming a license is now required, or not required, based on blog claims; verify any licensing change against the enrolled act.
Recent changes to Louisiana wholesaling law
Act 807 (HB 468) effective
Defines wholesaler/wholesaling and residential real property; requires disclosures, cancellation notice and deposit; Senate amendment added back-to-back closings.
LREC publishes mandatory cancellation notice form
Commission published the Wholesaling Residential Real Property Mandatory Cancellation Notice (reported 2026-07-28).
HB 468 signed
Passed without opposition; reported signed 2026-06-09.
Real estate licensing in Louisiana
Real estate licensing in Louisiana is overseen by Louisiana Real Estate Commission (LREC).
Louisiana salesperson applicants complete 90 hours of pre-licensing education, pass the state exam, and must finish 45 hours of post-licensing education within 180 days of initial licensure. Licensing requirements
Running the numbers on a Louisiana 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 Louisiana 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 Louisiana investor loans or our end-buyer financing guide.
Louisiana wholesaling FAQ
Is wholesaling legal in Louisiana?
Yes. Act 807 of 2026 regulates wholesaling of 1-4 unit residential property but does not ban it. Since August 1, 2026, wholesalers must give sellers a prominent written disclosure before each related contract, include LREC's mandatory cancellation notice, and post an escrowed earnest-money deposit. Contracts completed before that date are excluded.
What is Louisiana's new wholesaling law?
Act 807 of the 2026 Regular Session (HB 468) amended the Real Estate License Law and enacted La. R.S. 37:1448.5, effective August 1, 2026. It defines wholesaler and wholesaling, requires disclosures, a cancellation notice and an escrowed deposit, and covers some back-to-back closings. HB 468 passed without opposition and was reported signed June 9, 2026.
Can a seller cancel a wholesale contract in Louisiana?
Yes. The Act gives sellers a right to cancel within a statutory window, reported as five days, using the Commission's mandatory cancellation notice. How the escrowed deposit is handled on cancellation is set by the Act, so read the enrolled text for the exact period and deposit terms before you sign.
Does Louisiana's wholesaling law cover double closings?
In many cases, yes. A Senate amendment extended the law to back-to-back or simultaneous closings in which the wholesaler does not provide all the funds to close with the original seller. If you fully fund the first purchase yourself, the transaction may fall outside the definition; confirm with the statute.
How much earnest money must a Louisiana wholesaler deposit?
The Act requires an earnest-money deposit held in escrow. Louisiana REALTORS reports the minimum, added by a House committee amendment, as 1% of the purchase price. Verify the figure and who may hold the deposit in Act 807 before structuring your offer. Use an escrow holder, not your own account.
What are the penalties for violating Louisiana's wholesaling law?
The Louisiana Real Estate Commission enforces the law, and civil penalties are reported at up to $5,000 per violation. Whether omitting the cancellation notice also voids the contract has not been confirmed, so treat every required document as essential to an enforceable deal. Read the enrolled act for the full enforcement provisions.
Does Louisiana have a real estate transfer tax?
There is no statewide transfer tax, and a 2011 constitutional amendment prohibits new ones. New Orleans retains a grandfathered documentary transaction tax, commonly reported as $325 per transfer, though sources disagree on the calculation. On a New Orleans double close, budget for it on both transfers.
Statutes, rules and sources
La. R.S. 37:1430 et seq.; La. R.S. 37:1448.5
Louisiana Real Estate License Law, as amended by Act 807 of 2026 (HB 468)
Effective Aug 1, 2026Read the text
- Act 807 (HB 468) enrolled text
- House Summary of Senate Amendments to HB 468
- Louisiana REALTORS - New Wholesaling Law Effective August 1
- NOMAR - New Wholesaling Law Effective August 1
- LREC - Wholesaling Residential Real Property Mandatory Cancellation Notice
- LREC - Salesperson pre-licensing education
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 Louisiana real estate attorney before you contract.