Delaware is putting wholesaling under a real estate license.
Delaware's SB 201 phases in over two dates — one changes your paperwork this summer, the other changes who's allowed to do business at all. Here's the plain-English version, and where funding fits if you buy the property instead of assigning the contract.
What the law does
Delaware's SB 201, signed in 2026, turns residential wholesaling into a licensed activity and gives sellers a new right to cancel. It applies to homes (one to four units) and single residential lots, and it phases in over two dates that do different things.
This is a plain-English summary, not legal advice — confirm your own situation with a Delaware attorney.
Two dates that matter
- August 30, 2026 — the seller's cancellation right. A seller can back out within 21 days of signing (and, if they were never given the required disclosure, up until the property actually transfers). The contract has to tell the seller plainly that you intend to assign or resell the interest without taking title first, and that they can cancel.
- February 26, 2027 — the license requirement. From that date, anyone in the business of wholesaling Delaware homes should assume they need a real estate license. That's what makes SB 201 one of the more consequential wholesaling laws in the country — it doesn't just add a disclosure, it moves the activity inside the licensing framework.
Assigning versus buying
The law is aimed at marketing or reselling an interest in a property before you take title. A double close is a different transaction — you actually buy the home from the seller, take title, and then sell to your end buyer. Whether that changes your obligations on a given deal depends on the facts, and it's a question for a Delaware attorney — especially before February 2027. What we can speak to is the practical part: buying the home takes real money at the closing table.
Where transactional funding fits
We fund the purchase for the short window between the two closings, repaid out of your buyer's proceeds, so your own capital stays free. You bring a real end buyer and a closing agent willing to handle back-to-back closings; we bring the money for the hours in between.
Run the numbers first. Two closings means two sets of closing costs — the second commonly around 3% — plus the funding fee. Against a thin spread that math can turn a deal into a pass, and it's better to know now.
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Tell us the deal — type of funding, amount, and closing date. We answer quickly, and we tell you straight if it isn't a fit.
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