Michigan real estate wholesaling laws (2026)

Is wholesaling legal in Michigan?

Yes, wholesaling is legal in Michigan today, but a bill that would regulate it is sitting in committee. No Michigan statute addresses wholesaling by name. Wholesalers are instead governed by Article 25 of the Occupational Code (MCL 339.2501 et seq.), which bars unlicensed people from negotiating sales for others or collecting commissions. House Bill 5366, introduced on December 16, 2025 by Rep. Jason Morgan, would add wholesaling and mandatory-disclosure provisions to that article. Secondary sources say it would treat wholesaling as licensed broker activity and require a written seller disclosure before assignment, but the full text has not been verified. The bill was referred to the House Government Operations Committee, and no further action has been found. Because the 2025–2026 session runs through December 2026, it is still technically alive. Until something passes, contract as a principal, assign only your equitable interest and avoid commission-style arrangements.

What Michigan requires from wholesalers

• Contract as principal and assign only your equitable interest; avoid advertising the property as if you owned it or were its agent
• Do not collect a commission or act for an owner without a broker license (MCL 339.2512)
• Note the Occupational Code's owner rule: an owner who sells real estate as a principal vocation (more than 5 sales in 12 months) needs a broker license
• Watch HB 5366: if enacted, wholesaling would become regulated activity with required written disclosures

How to wholesale legally in Michigan: step by step

1. 1

   Contract as the principal buyer. Sign a purchase agreement that permits assignment and that you could close on yourself. Your legal footing in Michigan is that you are selling your own equitable interest, not negotiating a sale on the owner's behalf.

2. 2

   Watch your annual volume. The Occupational Code treats an owner who sells real estate as a principal vocation, reported as more than five sales in 12 months, as needing a broker license. If you double close often, confirm the exact rule and how it counts your deals with a Michigan attorney.

3. 3

   Disclose your plans in writing now. Michigan does not yet require a wholesaling disclosure, but HB 5366 would. Telling sellers in the contract that you may assign it, and keeping their signed acknowledgment, prepares you for that change and reduces disputes today.

4. 4

   Market the contract interest only. Advertise an assignable contract rather than the house, and never describe yourself as the owner or the owner's agent. Collecting a fee for bringing a buyer to an owner's property is the kind of activity MCL 339.2512 reserves for licensees.

5. 5

   Open the file with a title company. Most Michigan residential closings run through title companies, and an attorney is not required. Send the assignment agreement or your double-close plan early so the title company can prepare accurate settlement statements for each party.

6. 6

   Price in the transfer tax. The state charges $3.75 per $500 and the county generally $0.55 per $500, both paid by the seller. That cost belongs to the original seller on an assignment but becomes yours on the resale deed in a double close.

7. 7

   Track HB 5366 before every new campaign. If it is enacted, wholesaling would become regulated activity with required written disclosures. Check the bill page on the Michigan Legislature's website for committee action before printing mailers or signing contracts that will close after a possible effective date.

Seller protections and penalties in Michigan

Penalties: Unlicensed brokerage violates the Occupational Code (administrative fines, civil and criminal penalties); commissions earned without a license cannot be collected.

Assignment vs. double close in Michigan

An assignment keeps you out of the chain of title. The original seller deeds directly to your end buyer, pays the state and county transfer tax as grantor, and the title company pays your fee from the closing. Under current law that structure requires no license as long as you are selling your own contract interest. HB 5366 is aimed squarely at this model, so an assignment is the route most likely to need new disclosures if the bill passes. A double close puts you on two deeds. You buy, then resell, and as the grantor on the second deed you pay the combined $4.30 per $500, roughly 0.86% of the resale price, or about $1,720 on a $200,000 resale in a county charging $0.55. The first purchase has to close fully on its own before the second can record. Frequent double closers should also weigh the Occupational Code's owner rule, which reportedly treats more than five sales in 12 months as a principal vocation requiring a broker license.

Transfer tax: Michigan charges a state real estate transfer tax of $3.75 per $500 and a county tax generally of $0.55 per $500 (counties over two million people may charge up to $0.75), both imposed on the seller or grantor (MCL 207.525). Stamps are purchased in the county where the property is located.

Closings: Michigan is generally treated as a title-company state: most residential closings are handled by title companies, and an attorney is not required, though attorneys and escrow officers also close deals.

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 Michigan

• Accepting a commission or referral fee from an owner. Commissions earned without a license cannot be collected, and the conduct violates the Occupational Code.
• Running many double closes in a year without checking the owner rule, which reportedly requires a broker license once sales exceed five in 12 months.
• Treating HB 5366 as law, or ignoring it. As of this update it is in committee; if enacted, it would add licensing and disclosure duties.
• Advertising the house as though you own it or represent the seller, rather than marketing an assignable purchase contract.
• Forgetting that transfer tax stamps are bought in the property's county and that you pay them as grantor on a double-close resale.

Recent changes to Michigan wholesaling law

No wholesaling-specific changes found since 2021.

Real estate licensing in Michigan

Real estate licensing in Michigan is overseen by Michigan Department of Licensing and Regulatory Affairs (LARA), Bureau of Professional Licensing.

Salesperson applicants complete 40 hours of pre-licensing education from a LARA-approved provider, including at least 4 hours on civil rights and fair housing, then pass a PSI-administered exam with state and national portions and secure a sponsoring broker. Licensing requirements

Running the numbers on a Michigan 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 Michigan 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 Michigan investor loans or our end-buyer financing guide.

Michigan wholesaling FAQ

Statutes, rules and sources

• MCL 339.2501 et seq. (1980 PA 299, Art. 25)

  Occupational Code - Real Estate Brokers and Salespersons

  Read the text

• Michigan Legislature - House Bill 5366 of 2025
• LegiScan - MI HB5366 (2025)
• The FG Firm - Is Wholesaling Real Estate Legal in Michigan?
• State Real Estate Transfer Tax Act (MCL Act 330 of 1993)

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 Michigan real estate attorney before you contract.