Requires any person in the business of selling, assigning or buying an equitable interest in real estate without taking legal title to such property, to be licensed as a real estate broker or salesperson and to comply with the disclosure requirements.

Plain-English Summary

This bill targets a real estate practice commonly known as "wholesaling," where someone secures a contract to buy a property and then sells or transfers their rights in that contract to another buyer — all without ever actually owning the property outright. Under current law, people doing this type of business may not be required to hold a real estate license. This bill would change that by requiring anyone regularly engaged in buying, selling, or assigning these types of contract rights (called "equitable interests") to be licensed as a real estate broker or salesperson in Rhode Island.

In practical terms, this means real estate wholesalers would need to meet the same licensing standards as traditional real estate agents — including passing required exams, completing education requirements, and following professional conduct rules. They would also need to comply with existing disclosure requirements, meaning they would have to be transparent with buyers and sellers about their role in a transaction and any fees they are earning.

This bill primarily affects people who currently operate as real estate wholesalers in Rhode Island, as well as property owners and investors who interact with them. Supporters of similar laws in other states have argued that licensing requirements protect consumers — particularly homeowners who may not fully understand these types of deals — from potentially deceptive or uninformed practitioners. The bill has been introduced and referred to the House Corporations Committee, where it will be reviewed before any further action is taken.