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Senate passes bill to regulate real‑estate wholesaling, require licensing and strengthen consumer recovery fund
Summary
Senate Bill 201 defines wholesaling, requires wholesalers to hold a real‑estate license, adds mandatory disclosures and a 21‑day cancellation right, and raises the Real Estate Guarantee Fund recovery cap from $25,000 to $50,000; the measure passed 20‑yes, 1‑absent.
Senate Bill 201, introduced by Senator Manzanvinos, passed the Senate on March 26 after floor consideration.
The sponsor said wholesaling — where someone assigns their contract to buy a home to another buyer for a fee without taking title — can be legitimate but is sometimes used to exploit vulnerable homeowners with excessive assignment fees. The bill defines wholesaling in statute, requires individuals engaging in the practice to hold a real‑estate license subject to oversight by the Delaware Real Estate Commission, guarantees a 21‑day right to cancel wholesale agreements, mandates clear disclosures when a wholesaler intends to resell a contract, and expands consumer remedies via the Real Estate Guarantee Fund by increasing the maximum recovery from $25,000 to $50,000 and raising the fund’s minimum balance.
The sponsor said the bill does not ban wholesaling but seeks to ensure transparency and professional oversight. The Senate recorded a roll call of 20 yes and 1 absent and declared the bill passed to the Senate.
