Is Wholesaling Legal in South Carolina? Laws & Rules (2026)

Is wholesaling legal in South Carolina?

Quick answer

Act 204 of 2024 (H.4754) defined 'wholesaling' as holding a contract to buy residential (1-4 unit) property and then marketing the property to another buyer before taking title. Marketing another's property for compensation is brokerage requiring a license, yet brokerage firms and their agents are barred from wholesaling, so marketing the property itself is effectively unavailable. Assigning, or offering to assign, the contract right itself is excluded from the definition, though the Real Estate Commission warns an assignment can still be wholesaling if other elements are present.

Wholesaling is legal in South Carolina only in a narrow form: you may assign your contract right, but you may not market the house itself while you merely have it under contract. Act 204 of 2024 (H.4754) added a statutory definition of 'wholesaling' to the Real Estate Practice Act, covering anyone who holds a contract to buy 1-4 unit residential property and markets that property to another buyer before taking title. Marketing someone else's property for compensation is brokerage, yet the same law bars licensed brokerage firms and their agents from wholesaling, so a license does not open the door either. In November 2024 the Real Estate Commission issued an advisory opinion separating wholesaling from a true contract assignment and reading 'marketing a contract' narrowly. In practice, investors here either assign a contract without advertising the property or buy the house first and resell it as the owner.

South Carolina at a glance

Status: License required
License required to wholesale?: Yes — see requirements
Seller cancellation / disclosure rights?: No wholesaling-specific right found
Key law: S.C. Code 40-57-30(44); 40-57-350 (effective May 21, 2024)
Regulator: South Carolina Department of Labor, Licensing and Regulation (LLR), South Carolina Real Estate Commission
Transfer tax: South Carolina charges a deed recording fee of $1.85 per $500 of realty value ($1.30 state and $0.55 county) under S.C. Code 12-24-10; which party pays is set by the contract, so confirm the allocation with the closing attorney.
Closings: South Carolina is an attorney-closing state: Supreme Court case law requires residential closings to be supervised by a South Carolina-licensed attorney, with courts looking at whether each step had sufficient attorney oversight.
Last reviewed: Nov 6, 2026

What South Carolina requires from wholesalers

Do not advertise or market the property itself while you only hold a purchase contract (residential 1-4 units)
Assigning or offering to assign the contract right is not 'wholesaling' by definition, but 'marketing the contract' is narrowly construed by the Commission
Licensees and brokerage firms may not engage in, represent others in, or assist wholesaling
Close (take title) before marketing the property if you want to resell it as owner

How to wholesale legally in South Carolina: step by step

1
Decide before you sign which exit you will use. If you intend to advertise the house, plan to close on it first; if you intend to assign, accept that your outreach must stay focused on the contract right rather than the property.
2
Use a purchase agreement that expressly permits assignment and states that you are acquiring a contract interest. Clear assignability language supports the position that what you later transfer is the contract right excluded from the statutory definition.
3
Read the Real Estate Commission's November 2024 advisory opinion and its wholesaling guidance before writing any buyer-facing material. The Commission warns that an assignment can still be wholesaling if other elements are present, such as promoting the home itself.
4
Keep listings, photos, signs and social posts off the market while you hold only a contract. Contact buyers about acquiring your contract position, and avoid language that presents the house as available for sale from you.
5
Do not bring in a licensed agent or brokerage to help move the deal. Act 204 bars firms and their licensees from engaging in, representing others in, or assisting wholesaling, so a referral can put their license at risk.
6
Hire a South Carolina closing attorney early. Every residential closing needs attorney supervision, and the attorney can review your assignment paperwork, allocate the deed recording fee, and flag anything that looks like marketing the property.
7
Track updates from the Commission. Its Regulation Taskforce agreed in January 2025 to wait before drafting wholesaling and assignment regulations, so formal rules could still follow and change what counts as permitted marketing.

Seller protections and penalties in South Carolina

Penalties: Unlicensed brokerage and licensee violations are enforced by the SC Real Estate Commission (LLR); specific wholesaling penalty amounts not verified.

Assignment vs. double close in South Carolina

The statute steers South Carolina investors toward two very different exits. An assignment transfers your contract right to an end buyer who then closes directly with the seller; only one deed is recorded, so the $1.85-per-$500 deed recording fee is paid once. The trade-off is that you cannot advertise the house while you hold the contract, and the Commission has said an assignment can still be treated as wholesaling if you promote the property. A double close, or more accurately a purchase followed by a resale, lets you market the home freely because you own it. It costs more: two attorney-supervised closings, two deed recording fees and the cost of completing your own purchase before the resale. Because South Carolina requires attorney supervision of each closing, the attorney handling the second sale will want the first deed recorded and the title chain clean before proceeding. Many investors find the resale route simpler from a compliance standpoint even though the margin is thinner.

Transfer tax: South Carolina charges a deed recording fee of $1.85 per $500 of realty value ($1.30 state and $0.55 county) under S.C. Code 12-24-10; which party pays is set by the contract, so confirm the allocation with the closing attorney.

Closings: South Carolina is an attorney-closing state: Supreme Court case law requires residential closings to be supervised by a South Carolina-licensed attorney, with courts looking at whether each step had sufficient attorney oversight.

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 South Carolina

Posting the house on investor lists, social media or yard signs while you only hold a contract fits the statutory definition of wholesaling and invites Real Estate Commission scrutiny.
Asking a licensed agent to share or market your contract exposes that licensee to discipline, because Act 204 bars brokerage firms and their agents from assisting wholesaling.
Assuming the word 'assignment' on your paperwork is a safe harbor; the Commission says other conduct can still turn an assignment into prohibited wholesaling.
Skipping attorney involvement on a closing; South Carolina courts require attorney supervision of real estate closings, and title insurers rely on that rule.

Recent changes to South Carolina wholesaling law

Jan 2025
Commission defers wholesaling regulations
Regulation Taskforce agreed to wait before drafting wholesaling/assignment regulations to see how the advisory opinion is received.
Nov 14, 2024
Advisory Opinion on Exceptions to Wholesaling
Real Estate Commission distinguished wholesaling from contract assignment and limited 'marketing a contract'.
May 21, 2024
Act 204 (H.4754) signed
Added 'wholesaling' definition and barred brokerage firms/subagents from wholesaling.

Real estate licensing in South Carolina

Real estate licensing in South Carolina is overseen by South Carolina Department of Labor, Licensing and Regulation (LLR), South Carolina Real Estate Commission.

Salesperson applicants complete 90 hours of approved pre-licensing coursework (a 60-hour Unit I sales course and a 30-hour Unit II advanced principles course), pass the state exam, and apply through LLR with sponsorship from a South Carolina broker.

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

South Carolina wholesaling FAQ

Is wholesaling illegal in South Carolina?

Not entirely, but it is heavily restricted. Act 204 of 2024 defines wholesaling as holding a contract on 1-4 unit residential property and marketing the property before taking title, and it treats that marketing as brokerage while barring licensed firms from wholesaling. Assigning or offering to assign the contract right itself is excluded from the definition, so a quiet assignment remains possible.

Do you need a real estate license to wholesale in South Carolina?

A license does not solve the problem. Marketing another person's property for a fee is brokerage, but the 2024 amendments prohibit brokerage firms and their licensees from engaging in or assisting wholesaling. The practical options are an assignment that does not market the property, or buying the home first and reselling it as the owner.

Can I assign a real estate contract in South Carolina?

Yes. The statutory definition of wholesaling excludes assigning or offering to assign the contract right itself. The Real Estate Commission's November 2024 advisory opinion reads 'marketing a contract' narrowly, though, and warns that an assignment can still be wholesaling if other elements are present. Keep your outreach about the contract position, not the house.

When did South Carolina's wholesaling law take effect?

Act 204 (H.4754) was enacted in May 2024, and the code history lists the provisions as effective May 21, 2024. Some sources give a later signing date or cite May 15, 2025 for a related provision, so check the statute history if a specific date matters to your transaction.

Do I need an attorney to close a wholesale deal in South Carolina?

Yes. South Carolina Supreme Court decisions require real estate closings to be supervised by a South Carolina-licensed attorney, covering steps such as the title search, document preparation, closing and disbursement. Plan to involve a closing attorney for the seller-to-buyer closing on an assignment and for both closings if you buy and resell.

How much is the deed recording fee in South Carolina?

The deed recording fee is $1.85 for each $500 of realty value, split into $1.30 for the state and $0.55 for the county, under S.C. Code 12-24-10. Certain transfers are exempt. The contract decides who pays it, and a purchase followed by a resale means the fee is paid on two deeds.

Are more South Carolina wholesaling rules coming?

Possibly. The Real Estate Commission's Regulation Taskforce agreed in January 2025 to hold off drafting wholesaling and assignment regulations while it watched how the advisory opinion was received. No 2025-2026 amending bill was found, but formal regulations could still be proposed, so check LLR's news page before each new deal.

Statutes, rules and sources

S.C. Code 40-57-30(44); 40-57-350
Real Estate Practice Act, as amended by Act No. 204 of 2024 (H.4754)
Effective May 21, 2024Read the text

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 South Carolina real estate attorney before you contract.

South Carolina real estate wholesaling laws (2026)