New Wholesaler Laws in North Dakota
Beginning August 1, 2025, North Dakota expanded its real estate wholesaling law to apply to all real property, rather than only residential real property. Under the revised law, a wholesaler is a person who enters into an agreement to make income or profit from the transfer of, or an equitable interest in, real property. The law does not prohibit wholesaling, but it imposes specific disclosure requirements designed to ensure that all parties understand the nature of the transaction. https://www.realestatend.org/licensees/license-law/
A wholesaler must provide written disclosure to all parties to the agreement stating that the wholesaler holds only an equitable interest in the property, may not be able to convey title to the property, and intends to make a profit or income from transferring that equitable interest. If the required disclosures are not made, the other party may have the right to cancel the contract before closing without penalty. These requirements are intended to increase transparency and protect buyers and sellers by making it clear that the wholesaler is selling or assigning contractual rights rather than property the wholesaler owns. Licensed North Dakota real estate brokers and salespersons who participate in wholesaling transactions must also comply with the state’s real estate licensing laws and agency requirements. https://dealrun.ai/compliance/north-dakota
