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.

Rhode Island Bill Summary: Real Estate Wholesaling Licensing Requirement

This bill targets a real estate practice known as "wholesaling," where someone secures the right to buy a property under contract and then sells or transfers that contract to another buyer — all without ever actually owning the property outright. Currently, some people engage in this type of transaction without holding a real estate license. This bill would require anyone regularly doing this kind of business to obtain a licensed real estate broker or salesperson license, just like traditional real estate agents must have.

The bill also requires these individuals to follow the same disclosure rules that apply to licensed real estate professionals. This means they would need to be transparent with buyers and sellers about their role in the transaction, any fees they are collecting, and other relevant information that licensed agents are already required to share.

This bill affects two main groups of people. First, it directly impacts real estate wholesalers — individuals or businesses who profit by buying and reselling contracts on properties. They would need to meet Rhode Island's licensing requirements, which typically involve education, testing, and background checks. Second, it indirectly protects everyday homeowners and buyers who deal with these wholesalers, as they would gain the same consumer protections that apply when working with a licensed real estate professional.

The bill has been introduced and referred to the Senate Judiciary Committee, meaning it is still in the early stages of the legislative process and has not yet been voted on.