Real-estate 'wholesaling' draws scrutiny at General Law hearing; advocates and practitioners seek licensing, disclosures

The General Law Committee heard testimony on legislation that would require licensing and increased disclosures for real-estate wholesalers — intermediaries who commonly place distressed or off‑market property under contract and then assign those contracts to third‑party buyers.

Representative Joe Zullo, who testified for the bill's proponents, described wholesaling as a growing niche that often involves sellers who are vulnerable, in financial distress or pressed for time. "Wholesalers often deal with people who are vulnerable, and there's often an asymmetry of bargaining power, information, and comfort in a real estate process that makes them more susceptible to being exploited," Zullo told the committee.

Supporters of licensing urged three core protections: (1) a required statutorily‑mandated disclosure form delivered to sellers…