March 2025
The
new law and
administrative rules for residential property wholesaling go into effect July 1, 2025. These changes require individuals engaged in property wholesaling to either register as a Residential Property Wholesaler or be licensed as a real estate broker or principal real estate broker and to provide a written disclosure to all parties and in all advertising related to a property wholesaling transaction.
We encourage all licensees to familiarize themselves with these changes to ensure compliance with the updated regulations.
Q. What is residential property wholesaling?
A. Marketing residential property where a marketer has:
- Only an equitable interest or option to purchase the property.
- Held such interest or option for fewer than 90 days.
- Invested less than $10,000 in land development or improvement costs associated with the residential property.
Q. What does it mean when someone has equitable interest?
A. Someone with equitable interest in a property has contracted with the current owner for the right to buy the property at a later date even though they don't have legal title. The contract may allow the equitable interest holder to sell or transfer the right to purchase the property to someone else prior to close of escrow.
Q. How can I engage in residential property wholesaling in Oregon.
A. Starting July 1, 2025, you must be registered as a Residential Property Wholesaler or licensed as a Real Estate Broker or Principal Real Estate Broker with the Oregon Real Estate Agency. There are exemptions; please see
Oregon Laws 2024 chapter 3, section 3.
Q. How do I register as a Residential Property Wholesaler?
A. You must:
If you are a licensed real estate broker or principal broker, you do not need to register as a Residential Property Wholesaler to engage in property wholesaling.
Q. What am I required to do as a Broker, Principal Broker, or Residential Property Wholesaler conducting residential property wholesaling?
A. You must provide a written disclosure to all “covered parties." You must also provide it in all advertising related to the residential property subject to the property wholesale transaction. Advertising on social media is exempt from the requirements of this rule if the advertising links to a separate page that complies with this rule.
Q. Who are “covered parties?"
A. Covered parties include:
- Potential buyers and sellers before entering into a written contract for a residential property wholesale transaction.
- Any broker or principal broker engaged to assist the residential property wholesaler in marketing or listing the property.
- Any broker or principal broker assisting a potential buyer in purchasing the property.
Q. Where do I find the required written disclosure?A. The written disclosures for residential property wholesalers and brokers and principal brokers will published on the Oregon Real Estate Agency's website.