Connecticut implements new rules for real estate wholesale contracts starting October 2025

Connecticut's House Bill 5572, introduced on April 8, 2025, aims to enhance consumer protection in real estate transactions, particularly concerning wholesale contracts. The bill mandates that prospective sellers receive clear advisories about the complexities of engaging with wholesalers, urging them to consult legal or real estate professionals to secure favorable terms. This requirement is designed to empower sellers with knowledge and mitigate potential exploitation in the wholesale market.

Key provisions of the bill include a stipulation that no real estate wholesale contract can set a closing date more than seventy days from the date of execution. This timeframe can be extended only through mutual written agreement, ensuring that sellers are not left in prolonged uncertainty. Additionally, violations of these provisions will be classified as unfair or deceptive trade practices, reinforcing accountability among wholesalers.

The introduction of House Bill 5572 has sparked discussions among stakeholders in the real estate sector. Supporters argue that the bill is a necessary step toward safeguarding consumers, particularly vulnerable sellers who may lack experience in real estate transactions. Critics, however, express concerns about potential overregulation, fearing that stringent requirements could deter wholesalers from operating in Connecticut, ultimately limiting options for sellers.

The implications of this bill extend beyond consumer protection; it reflects a growing trend in state legislatures to regulate real estate practices more closely. Experts suggest that if passed, the bill could lead to a more transparent and equitable real estate market in Connecticut, fostering trust between sellers and wholesalers. As the bill moves forward, its impact on the local real estate landscape will be closely monitored, with potential ripple effects on market dynamics and seller experiences.

House Bill 5572 is set to take effect on October 1, 2025, marking a significant shift in how real estate transactions are conducted in the state. As the legislative process unfolds, stakeholders will be keenly observing its progress and potential outcomes for the community.