South Carolina does not ban wholesaling by name, but it defines it and tightens the license line. Home Pros (Balint Holdings, LLC) read the Code: marketing a house you do not own for pay requires a broker license, licensed firms may not assist wholesaling, and assigning a purchase contract is carved out of the definition.
Not legal advice. This is a plain-language reading of the South Carolina Code of Laws and the Texas Occupations Code as published online on October 13, 2026. The statute leaves room for interpretation, so have a South Carolina real estate attorney review your contract before you market a deal.
What does South Carolina law say wholesaling is?
Since May 21, 2024, the Code of Laws gives wholesaling its own definition. Section 40-57-20(44) says wholesaling "means having a contractual interest in purchasing residential real estate from a property owner, then marketing the property for sale to a different buyer prior to taking legal ownership of the property."
The definition came from Act 204 (H.4754), a bill titled Real Estate Associates. It was introduced in the House on January 9, 2024, passed the House 111 to 0 on March 5, passed the Senate 43 to 0 on May 9, and was signed by the governor on May 21, 2024. A bill that passed both chambers with no votes against it signals how little resistance regulating this practice met.
Notice what the definition turns on. It is the marketing, not the contract. Holding a purchase contract is ordinary. Advertising the house to other buyers before you own it is the act the statute names.
When does marketing a contract require a license?
The same subsection answers this: "Advertising or marketing real estate owned by another individual or entity with the expectation of compensation falls under the definition of 'broker' and requires licensure." The broker definition in Section 40-57-20 already reaches anyone who, for a fee or with the intent or expectation of receiving compensation, negotiates or attempts to negotiate the sale or other disposition of real estate.
That means the risk is not a new wholesaler crime. It is the old unlicensed brokerage rule, now pointed at wholesaling in plain words. Section 40-57-720 gives the licensing authority the tools: investigations, and cease and desist orders, restraining orders, or injunctive relief under Sections 40-1-100 and 40-1-210.
| Activity | What the statute says | Risk level |
|---|---|---|
| Buying a house and closing in your own name | You own it. Section 40-57-240 exempts an owner selling an identical interest. | Low |
| Assigning your purchase contract to a buyer | Excluded from the wholesaling definition in 40-57-20(44). | Lower, review with an attorney |
| Advertising the house to the public before you own it, for pay | Falls under "broker" and requires licensure. | High |
| Using a licensed agent to market your contract | Licensed firms and subagents may not assist wholesaling (40-57-340). | High for the agent |
Is assigning a contract still allowed?
The text says wholesaling "does not refer to the assigning or offering to assign a contractual right to purchase residential real estate." So assignment is carved out of the definition, and the line the Legislature drew sits between assigning a right and marketing a property you do not own.
Be careful with that distinction. The statute does not say what counts as marketing the property rather than offering to assign the contract, and it does not set out a disclosure form the way Texas does. A flyer with the street address and a price, or a public listing of the house, looks like marketing the property. A direct offer to assign your contract to a buyer you already know looks like an offer to assign a right.
For the mechanics of each exit, see our guides to contract assignment, double closing versus assignment, and transactional funding. A double close puts you in the chain of title, which is the cleanest way to be an owner before you sell.
Can licensed agents or brokers help with a wholesale deal?
No. Section 40-57-340 appears twice with the same rule. Pursuant to the duties owed to a client, a real estate brokerage firm and its subagents "are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling." Pursuant to the duties owed to a customer, the same sentence repeats.
This matters to investors in two ways. First, an agent friend who lists or markets your contract takes a licensing risk, so expect them to say no. Referral arrangements, co-marketing, and "helping out" with a flyer could all be read as assistance under the plain wording, so agents tend to stay away. Second, a South Carolina agent who is also an investor now has to keep their own deals clearly outside the wholesaling definition.
How does Texas treat the same deal?
Texas regulates the same activity with a disclosure rule instead of a prohibition. Texas Occupations Code Section 1101.0045 lets a person acquire an option or an interest in a contract to purchase real property and then sell the option or assign the contract without a license if the person does not use it to engage in real estate brokerage and discloses in writing the nature of the equitable interest to any seller or potential buyer. Selling or assigning without that disclosure "is engaging in real estate brokerage." Texas added the section in 2017 and amended it in 2023, effective January 1, 2024.
| Question | South Carolina | Texas |
|---|---|---|
| Defines wholesaling? | Yes, 40-57-20(44), since May 21, 2024 | No term, regulates "equitable interests" (1101.0045) |
| Written disclosure rule? | None in the text we read | Yes, to any seller or potential buyer |
| Assignment of contract? | Excluded from the wholesaling definition | Allowed without a license if the conditions are met |
| Licensed agents assisting? | Prohibited for firms and subagents (40-57-340) | Governed by general brokerage rules |
If you work across both states, do not copy a Texas contract into South Carolina. Our Texas as-is disclosure guide covers the seller side in Texas.
What should investors do on a South Carolina deal?
Treat the statute as a checklist and keep your conduct on the ownership side of it.
- Own it or assign it. Close in your own name, or assign the contract to a known buyer. Do not advertise a house you do not own.
- Keep marketing off the property. Avoid public ads with the address and price while you only hold a contract.
- Do not use a licensee. Section 40-57-340 bars licensed firms and subagents from helping.
- Get a South Carolina attorney. The statute leaves the marketing line undefined, so have counsel review your contract and your buyer outreach.
- Consider a direct cash buyer. If you found a deal and want a clean exit, submit it to Home Pros or browse the marketplace.
Home Pros is a veteran-owned cash buyer based in San Antonio, founded in 2025. We buy houses as-is, pay closing costs, and can close in as little as 7 days. Sellers in the state can read our South Carolina page, and buyers can see how our cash buyers work. For storm-season underwriting in the state, see hurricane season investing.
Frequently asked questions
Is wholesaling legal in South Carolina?
The statute does not ban it outright. Section 40-57-20(44) defines wholesaling and says marketing real estate you do not own with the expectation of compensation falls under the definition of a broker and requires a license. The same definition says wholesaling does not refer to assigning or offering to assign a contractual right to purchase residential real estate. Talk to a South Carolina attorney before you structure a deal.
Did Act 204 of 2024 make wholesaling illegal?
Act 204 (H.4754) was signed on May 21, 2024. It added the wholesaling definition to Section 40-57-20 and barred licensed brokerage firms from engaging in, representing others in, or assisting others in wholesaling. It did not add a separate criminal section for wholesalers. The licensing exposure comes through the existing broker definition.
Can a licensed agent help a wholesaler in South Carolina?
Not with wholesaling. Section 40-57-340 says that because of the duties owed to a client, and again to a customer, a brokerage firm and its subagents are prohibited from engaging in, representing others in, or assisting others in the practice of wholesaling. A licensee who works with you on a wholesale deal puts their own license at risk.
Does the owner exemption cover a wholesaler under contract?
It is narrow. Section 40-57-240 exempts an unlicensed owner who sells an interest identical to the owner's legal interest. A buyer under a purchase contract holds a contractual interest, not the seller's legal title, so do not assume the exemption fits. An attorney can tell you whether your deal fits.
How is Texas different from South Carolina?
Texas allows a person to assign a contract or sell an option without a license if they do not use it to engage in brokerage and disclose the nature of the equitable interest in writing to any seller or potential buyer. Section 1101.0045 of the Texas Occupations Code says that skipping the disclosure counts as real estate brokerage. South Carolina has no equivalent safe harbor in the text we read.
What is the safest way to sell a South Carolina deal you found?
Buy it yourself and close, or assign the contract without marketing the property to the public for compensation, with an attorney reviewing the paperwork. You can also bring the deal to a direct cash buyer. Home Pros buys houses as-is and can close in as little as 7 days, so a seller does not need a middleman.
Sources
Statutes were read on October 13, 2026. Quoted language is from the sources below.
- South Carolina Code of Laws, Title 40, Chapter 57: Section 40-57-20 (definitions, including "broker" and "wholesaling"), Section 40-57-240 (applicability), Section 40-57-340 (brokerage relationships), and Section 40-57-720 (investigations and cease and desist orders).
- South Carolina General Assembly, Bill 4754 (Act 204 of 2024): bill history, vote counts, and the governor's signature on May 21, 2024.
- Texas Occupations Code Section 1101.0045, Equitable Interests in Real Property: the Texas disclosure rule, as reproduced from the Texas Statutes.
Not legal advice. Statutes change and courts and the Real Estate Commission interpret them. Confirm current law with a licensed South Carolina attorney.