Is wholesaling legal in Maryland?
Quick answer
Yes, wholesaling is legal in Maryland, but since October 1, 2025 it comes with mandatory written disclosures for most residential deals. Real Property § 10-715, added by HB 124 and SB 160 (Chapters 508 and 509 of 2025), covers contracts to buy owner-occupied residential property with four or fewer single-family units. Before the owner signs, you must tell them in writing that the contract may be assigned. Before you assign, you must tell your end buyer in writing that you hold only an equitable interest and may not be able to convey title. If either notice is missing, the owner or the assignee can rescind before closing without penalty. The law did not create a wholesaler license, so the Maryland Real Estate Brokers Act in Business Occupations Title 17 still decides when your activity becomes brokerage. The disclosure rules apply only to contracts signed on or after October 1, 2025.
Maryland 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
- Md. Code, Real Prop. § 10-715 (effective Oct 1, 2025)
- Regulator
- Maryland Real Estate Commission (MREC), Maryland Department of Labor
- Transfer tax
- The state transfer tax is 0.5% of consideration and is customarily split evenly between buyer and seller; for a first-time Maryland homebuyer the state rate is reportedly reduced to 0.25% and paid by the seller unless the contract says otherwise. Counties add their own transfer and recordation taxes, which vary by jurisdiction.
- Closings
- Maryland settlements are commonly handled by title and settlement companies, many of which employ attorneys. Real Property § 3-104(f)(1) reportedly requires a certification that a deed or deed of trust was prepared by or under the supervision of an attorney, or an alternative certification; whether an attorney must conduct the settlement itself is disputed in secondary sources.
- Last reviewed
- Nov 6, 2026
What Maryland requires from wholesalers
- Applies to contracts of sale for owner-occupied residential property (4 or fewer single-family dwelling units) signed on or after Oct. 1, 2025
- Before signing, give the owner a written disclosure that you intend to or may assign the contract for a fee
- Before assigning, give the assignee or end buyer a written disclosure that you hold only an equitable interest and may not be able to convey title
- Keep signed copies of both disclosures; missing notices leave the deal open to rescission until closing
- Market only your contract interest; acting for others or advertising the property itself may require a broker license under Business Occupations Title 17
How to wholesale legally in Maryland: step by step
- 1
Check whether the deal is covered. Section 10-715 reaches contracts of sale for owner-occupied residential property with one to four single-family units signed on or after October 1, 2025. If a property is vacant, tenant-occupied or mixed-use, read the statute text before assuming you are outside it.
- 2
Deliver the owner disclosure before signature. Give the seller a written notice that you intend to, or may, assign the contract for a fee, and have it signed and dated before the purchase contract is executed. Keep it with the contract so you can prove the order of events later.
- 3
Draft a contract you can actually perform. Include express assignment language, a realistic settlement date and an earnest-money deposit you are prepared to lose. Maryland's law is about transparency, and a contract full of vague walk-away clauses invites exactly the seller complaints it was written to address.
- 4
Give the assignee the equitable-interest notice. Before the assignment is signed, tell your end buyer in writing that you hold only an equitable interest in the contract and may not be able to convey title. Without that notice, the assignee can rescind before closing and seek a refund of the assignment deposit.
- 5
Market the contract, not the house. Describe what you are selling as an assignment of a purchase contract and avoid wording that suggests you own or represent the property. Acting for an owner or buyer for compensation still requires a license under Business Occupations Title 17.
- 6
Get a full tax estimate early. Ask the settlement company to quote state and county transfer and recordation taxes before you set an assignment fee or choose a double close. County charges sit on top of the 0.5% state tax and change the math from one jurisdiction to the next.
- 7
Keep a complete deal file. Retain both signed disclosures, the purchase contract, the assignment agreement and the settlement statement. Because the statutory remedy is rescission any time before closing, written proof that each notice came at the right moment is your main protection.
Seller protections and penalties in Maryland
- Owner may rescind the contract without penalty at any time before closing if the required notice was not given and the contract was assigned
- Assignee who did not receive the equitable-interest notice may rescind before closing and recover any deposit paid for the assignment (per fiscal note and secondary sources)
Penalties: Main remedy is rescission without penalty before closing and refund of the assignee's deposit; no separate wholesaler licensing penalty in the 2025 law.
Assignment vs. double close in Maryland
Maryland's 2025 statute is built around assignments. If you assign a covered contract, both notices must be in place: the owner's before the contract is signed and the assignee's before the assignment. With them, the deal proceeds to a single settlement and one set of transfer and recordation taxes, normally split between the original seller and your end buyer. A double close works differently. You take title in one settlement and resell in a second, so two deeds are recorded and state and county taxes are generally due on both. In counties with high local rates, that second round of taxes can absorb a large share of the spread. You also become the seller of record on the resale, with the disclosure and title obligations that brings. Whether § 10-715's notices still matter when you close rather than assign is a question for a Maryland attorney, but giving the owner disclosure in every covered deal costs little. Either way, tell the settlement company your structure up front so its documents match it.
Transfer tax: The state transfer tax is 0.5% of consideration and is customarily split evenly between buyer and seller; for a first-time Maryland homebuyer the state rate is reportedly reduced to 0.25% and paid by the seller unless the contract says otherwise. Counties add their own transfer and recordation taxes, which vary by jurisdiction.
Closings: Maryland settlements are commonly handled by title and settlement companies, many of which employ attorneys. Real Property § 3-104(f)(1) reportedly requires a certification that a deed or deed of trust was prepared by or under the supervision of an attorney, or an alternative certification; whether an attorney must conduct the settlement itself is disputed in secondary sources.
Local rules: County transfer and recordation taxes differ widely; Montgomery County, for example, reportedly charges a 1% county transfer tax on top of the state tax, so check the county where the property sits before pricing a deal.
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 Maryland
- Handing the seller the assignment disclosure after the contract is signed. The notice must come before signature, and a late notice leaves the contract open to rescission until closing.
- Skipping the end-buyer notice because the buyer is an experienced investor. The equitable-interest disclosure is required regardless, and without it the assignee can rescind and recover the deposit.
- Assuming a real estate license makes wholesaling safer. The Maryland Real Estate Commission has reportedly read Bus. Occ. § 17-322(b)(11) as barring licensees from wholesaling, so licensed agents should get guidance first.
- Advertising the property itself, or presenting yourself as the owner's representative, which can look like unlicensed brokerage under Business Occupations Title 17.
- Pricing a double close without county transfer and recordation taxes, which vary by jurisdiction and are generally paid again on the second deed.
Recent changes to Maryland wholesaling law
Wholesaling disclosure and rescission law takes effect
HB 124 / SB 160 (Chs. 508-509 of 2025) added Real Prop. § 10-715 requiring owner and assignee disclosures, with rescission rights before closing. Applies prospectively only.
HB 1408 fails
Earlier version (Residential Property - Assignment of Contracts of Sale - Disclosure Requirements and Rescission) passed the House but died.
Wholesaler licensing bill withdrawn
HB 301 (2023), which would have required wholesalers to be licensed as brokers, was withdrawn by its sponsor.
Real estate licensing in Maryland
Real estate licensing in Maryland is overseen by Maryland Real Estate Commission (MREC), Maryland Department of Labor.
Salesperson applicants complete 60 hours of pre-licensing education from an MREC-approved provider, including a 3-hour ethics component, then pass a PSI-administered exam with national and state portions and affiliate with a sponsoring broker. Licensing requirements
Running the numbers on a Maryland 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 Maryland 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 Maryland investor loans or our end-buyer financing guide.
Maryland wholesaling FAQ
Is wholesaling legal in Maryland?
Yes. Wholesaling is legal in Maryland, but since October 1, 2025 Real Property § 10-715 requires written disclosures for contracts on owner-occupied homes with one to four single-family units. The owner must be told before signing that the contract may be assigned, and the assignee must be told that the wholesaler holds only an equitable interest. Missing notices let the owner or assignee rescind before closing without penalty.
Do you need a real estate license to wholesale in Maryland?
Not to buy as a principal and assign your own contract; the 2025 law did not create a wholesaler license. You do need a license under Business Occupations Title 17 to act for an owner or buyer for compensation, list property or negotiate on someone else's behalf. A 2023 bill, HB 301, that would have required wholesalers to be licensed as brokers was withdrawn by its sponsor.
What disclosures does a Maryland wholesaler have to give?
Two. Before the owner signs the purchase contract, you must give them a written disclosure that you intend to, or may, assign the contract for a fee. Before assigning, you must give the assignee a written disclosure that you hold only an equitable interest and may not be able to convey title. The exact content required in each notice should be checked against the text of § 10-715.
What happens if a Maryland wholesaler skips the required disclosure?
The main consequence is rescission. If the owner did not receive the notice and the contract was assigned, the owner may cancel without penalty at any time before closing. An assignee who did not get the equitable-interest notice may also rescind before closing and, according to the fiscal note and secondary sources, recover any deposit paid for the assignment. The 2025 law adds no separate licensing penalty.
Can a licensed real estate agent wholesale in Maryland?
Proceed carefully. According to the fiscal note for the 2023 HB 301 bill, the Maryland Real Estate Commission reads Business Occupations § 17-322(b)(11) as barring licensees from engaging in wholesaling. That reading means a license may add restrictions rather than remove them. A licensed agent considering wholesale deals should get written guidance from their broker or the Commission before signing any contract.
How do you get a real estate license in Maryland?
Applicants complete 60 hours of pre-licensing education from a Maryland Real Estate Commission-approved provider, including a 3-hour ethics component. They then pass a PSI-administered exam with national and state portions and apply with a sponsoring licensed broker. Course formats, deadlines and fees change, so confirm current requirements with the Commission before enrolling.
How much is the real estate transfer tax in Maryland?
Maryland's state transfer tax is 0.5% of consideration and is customarily split evenly between buyer and seller. For a first-time Maryland homebuyer, the state rate is reportedly cut to 0.25% and paid by the seller unless the contract provides otherwise. Counties add their own transfer and recordation taxes, so total costs depend heavily on where the property is located.
Statutes, rules and sources
Md. Code, Real Prop. § 10-715
Assignment of Contracts of Sale - Disclosure and Rescission (HB 124, Ch. 508 of 2025; SB 160, Ch. 509 of 2025)
Effective Oct 1, 2025Read the text
Md. Code, Bus. Occ. & Prof. Title 17
Maryland Real Estate Brokers Act (general licensing)
- Maryland General Assembly - HB 124 (2025RS) bill page
- Chapter 508 of 2025 (enacted HB 124 text)
- HB 124 Fiscal and Policy Note (2025)
- Maryland REALTORS - Summary of 2025 Real Estate Legislation
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 Maryland real estate attorney before you contract.