Real estate: wholesaling.

A willful violation of the Real Estate Law is a crime.

This bill would expand the definition of a real estate broker under the Real Estate Law to include a person who, for compensation or in expectation of a compensation, regardless of the form or time of payment, negotiates the sales contract. The bill would also prohibit a person from engaging in wholesaling unless they hold a valid real estate license, as specified, and would define wholesaling as entering into or offering to enter into a contract or option to purchase real property on behalf of another person and selling, assigning, or marketing that contract or option to them for compensation or profit. The bill would require a wholesaler to clearly disclose in writing to any property owner with whom they contract that they will not take title to the property, as specified. The bill would require an advertisement or offer to sell or assign a contract or option under these provisions to clearly disclose in writing that the person making the offer does not hold legal title to the property. The bill would deem the failure to provide the above-described disclosure as substantial misrepresentation and would make the failure to provide this disclosure subject to disciplinary action, as specified. By expanding the application of the real estate professional licensing laws, the willful violation of which is a crime, the bill would impose a state-mandated local program.

The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement.

This bill would provide that no reimbursement is required by this act for a specified reason.