The Real Estate Licensing and Registration Act (RELRA) regulates the practice of real estate and is being amended to clarify that the practice of wholesaling is licensed real estate activity. Anyone who wants to do a wholesale transaction for themselves or represents a wholesaler who is selling a property must have a real estate license. Act 52 of 2024, which was signed into law in July 2024 and takes effect in January 2025, modifies RELRA to provide uniformity in real estate licensing and protect vulnerable consumers. In recent years, the practice of wholesaling has become more prevalent with very little oversight. People who participate in wholesale transactions are sometimes promised an opportunity to “make money fast” in real estate with “little or no upfront investment” but with only a few hours’ worth of training in real estate transactions. Without oversight, some wholesalers can take advantage of homeowners who are elderly or infirm, in dire financial situations or are not informed of their property’s value. Now that wholesalers will be licensed, the Pennsylvania State Real Estate Commission will be able to investigate and address bad behavior. The Pennsylvania Association of Realtors (PAR) has created a resources page for wholesaling. PAR will also host a webinar on the topic on Jan. 8.
Source: PAR; 12/17/2024