Big news for North Carolina real estate: House Bill 797 could reshape how wholesaling works statewide. The bill redefines wholesaling as a licensed brokerage activity, which impacts investors, wholesalers, and hard money lenders alike. If you’re involved in structuring, funding, or closing deals, now’s the time to pay attention. While the bill has passed the House and awaits Senate approval, it’s the perfect time to understand what’s changing and how to stay ahead.
Wholesaling = Brokerage Under New NC Law
House Bill 797 makes it official: wholesaling now falls under the definition of real estate brokerage. That means, starting October 1, 2025 (pending Senate approval), anyone conducting wholesale deals in North Carolina will need a broker’s license.
This shift comes after years of concerns about unregulated activity. Wholesale real estate has operated in a gray area for well over a decade, resulting in a lack of transparency and accountability. The ambiguity of wholesale real estate became more noticeable during the housing crisis of 2008, followed by the post-2020 boom, when off-market deals became more common. With increased consumer complaints in recent years, the call for transparency has grown louder. HB 797 aims to bring that to the table.
What Counts as Wholesaling Under the New Law?
- Putting a property under contract, then selling that contract to a buyer
- Marketing or advertising a property you don’t own, but have under contract.
- Placing a home under contract and collecting a “finder’s fee”
- Helping someone else buy or sell a property and receiving compensation
Once this bill passes the Senate, doing any of these without a broker’s license may result in penalties.
TAG Perspective: As of 2025, North Carolina has over 100,000 actively licensed brokers. That number will likely grow as wholesalers begin the transition. Nationally, Ohio and Oregon have passed similar laws, with West Virginia, South Carolina, Illinois, and New York exploring the same direction. It’s a trend to watch closely.
Homeowner Protections and Legal Risks
Beyond regulating wholesalers, HB 797 puts new safeguards in place to protect sellers from confusion, pressure, or unfair contract terms.
Sellers now have the right to cancel a wholesale contract for any reason within 30 days or before the deal closes, whichever comes first. Every contract must include this right in bold, 14-point font, clearly placed above the seller’s signature.
Violating this rule will be considered “deceptive” trade practices under NC law, which means the seller doesn’t have to prove harm to take legal action.
What Professionals Need to Know
- Wholesaling without a broker’s license will now lead to fines or legal action.
- Realtors and lenders working with investors must ensure their partners are fully compliant.
- Failing to adapt could open the door to lawsuits and reputational risk
TAG Perspective: Lenders should expect operational changes as HB 797 takes action. This will include verifying licenses, updating compliance checklists, and reviewing assignment contracts more closely to ensure every deal meets the new legal standard.
How TAG Supports the Investment and Wholesaling Community
While some worry this new regulation could slow down deal flow, it’s now more important than ever to choose your partners carefully. At TAG, we work with hard money lenders and real estate investors across North and South Carolina. These conversations are part of our day-to-day, and we’re here to help your deals move forward with clarity and confidence.
Appraisal Solutions Built for Investors
- As-is/ARV appraisals to support competitive, fair offers
- Rental analysis included for buy-and-hold strategies
- Fast 3-5 day turnaround times to meet tight contract timelines
- A strong commitment to legal, transparent transactions across the Carolinas.
TAG Perspective: As active partners with the North Carolina Real Estate Investors Association, we’ve watched this bill take shape. Now’s the time to plan. If you’re an investor, consider joining an NCREIA meeting. They’re staying informed on this issue, and it’s a great way to keep up-to-date.
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