AN ACT concerning Real Estate Brokers – Brokerage Services – Real Estate Wholesaling

HOUSE BILL 301

C3 3lr0739

By: Delegate Rosenberg
Introduced and read first time: January 25, 2023 Assigned to: Economic Matters

A BILL ENTITLED

AN ACT concerning

Real Estate Brokers – Brokerage Services – Real Estate Wholesaling

This is a bill that is being proposed in Maryland that would change the definition of "provide real estate brokerage services" to include engaging in the business of real estate wholesaling. This means that if the bill is passed, an individual who engages in real estate wholesaling would be required to be licensed as a real estate broker, associate real estate broker, or a real estate salesperson. The bill would also make changes to other sections of the law regarding the provision of real estate brokerage services. This bill is being introduced by Delegate Rosenberg and it is currently being assigned to the Economic Matters committee. If it passes, it will take effect on October 1st, 2023.

If this law were to be passed, it would require individuals who engage in the business of real estate wholesaling to be licensed as a real estate broker, associate real estate broker, or real estate salesperson. Therefore, if someone wants to get around this law, they would need to avoid engaging in the business of real estate wholesaling, or find a way to do so without being considered as providing real estate brokerage services as defined by the law. This could be done by not providing any of the services listed in 17-101(l) for consideration, or not doing so regularly in a business of dealing in real estate or leases or options on real estate or engaging in a business that subdivides land that is located in any state and sells the divided lots or serving as a consultant regarding any activity set forth in items (1) through (5) of this subsection. It is important to note that breaking the law would result in penalties, fines and possibly criminal charges.

It is possible that using different companies for different wholesale deals could potentially circumvent the law, as the language of the bill appears to focus on individuals engaging in the business of real estate wholesaling, rather than specific companies. However, it is important to note that each state has different laws and regulations regarding real estate and the use of multiple companies may not be allowed or may raise red flags with regulators. It would be best to consult with a licensed real estate attorney to understand the specific laws and regulations in your state and to determine whether or not using multiple companies would be a viable option.

Link to the bill: https://mgaleg.maryland.gov/2023RS/bills/hb/hb0301f.pdf?fbclid=IwAR3Pn1MPwqHpomT8g3hKyD9jDIj8bYhFN8RUQmBSMqjtbJwNGP1NhjiyOYE