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House passes consumer-protection bill for real-estate wholesaling over some objections
Summary
Senate Bill 201, described on the floor as a consumer-protection measure that would require licensing and a 21-day cancellation period for wholesaling contracts, passed the House after debate. Some members warned the bill could complicate traditional 'willing seller, willing buyer' transactions. Final roll-call: 26 yes, 10 no, 2 not voting, 3 absent.
The Delaware House voted on May 14 to pass Senate Bill 201, a measure that floor sponsors described as aimed at consumer protection in real-estate "wholesaling" transactions. Representative Bush summarized the bill as requiring wholesalers to be licensed, giving a 21-day cancellation period for wholesaling contracts, ensuring the contract identify the transaction as a wholesaling deal, and providing rights to an appraisal and legal counsel.
Representative Spiegelman spoke in opposition, saying the bill "violates that willing seller, willing buyer thing" and raised concerns that the measure may make contracts more difficult and could be used against sellers who did not secure full market information. Spiegelman said, "I just don't think it's ready for prime time" and expressed reservations about enforcement and unintended consequences.
After debate the House approved the bill on roll call; the Chief Clerk announced the tally as 26 yes, 10 no, 2 not voting, and 3 absent. Having received its constitutional majority, the Speaker declared that Senate Bill 201 "is hereby passed the House."
