Not legal advice. This is a plain-language reading of the enrolled text of Texas Senate Bills 2212 (2017) and 1577 (2023), the Texas Real Estate Commission's published summary, and the Occupations Code sections cited below, as available online on October 24, 2026. Have a Texas real estate attorney review your contract and marketing before you rely on any of it.
What does the Texas wholesaling statute say?
Texas handles wholesaling inside the real estate license law, in Occupations Code Chapter 1101. Section 1101.0045 is titled "Equitable Interests in Real Property." Subsection (a) says a person may acquire an option or an interest in a contract to purchase real property, then sell or offer to sell the option or assign or offer to assign the contract, without holding a license, if the person meets two conditions.
First, the person "does not use the option or contract to purchase to engage in real estate brokerage." Second, the person "discloses in writing the nature of the equitable interest to any seller or potential buyer." Subsection (b) closes the loop: a person who sells, assigns, or offers to do either without making that disclosure "is engaging in real estate brokerage."
The Texas Real Estate Commission (TREC) summarizes it the same way. It describes wholesaling as marketing an option or an equitable interest in a contract to purchase a property you do not own, and says a person who does so without notice "is engaged in unlicensed brokerage activity." The statute does not create a wholesaler license, a registration, or a state form. It sets a disclosure condition on a license exemption.
How has the law changed since 2017?
Texas added the wholesaling rule in 2017 and tightened it in 2024. Both versions are in the enrolled bills on the Legislature's site, so you can compare the wording rather than rely on a summary.
| Date | Bill | What it did |
|---|---|---|
| September 1, 2017 | SB 2212 (85th Legislature) | Added Occupations Code 1101.0045 and Property Code 5.086. Disclosure of the equitable interest went to "any potential buyer." Passed the Senate 30 to 0 and the House 143 to 0. |
| January 1, 2024 | SB 1577 (88th Legislature) | Amended 1101.0045 so the disclosure must be "in writing" and go to "any seller or potential buyer." Passed the Senate 30 to 0 and the House 137 to 0 with one present not voting. |
The 2024 change is the one that catches working investors. Before it, the statute required a disclosure to the buyer only. Now the seller must receive the same written notice, which means the seller on your purchase contract has to be told, on paper, that you hold an equitable interest and may sell it. A purchase contract with a standard "and/or assigns" clause and no separate written notice leaves that second condition open.
We found no 2025 session bill that changed Section 1101.0045. Check the Legislature's site before each deal, because the Commission can also publish guidance.
When does wholesaling become unlicensed brokerage?
This is the question the statute leaves to the facts. Section 1101.002 defines a broker as a person who, "in exchange for a commission or other valuable consideration or with the expectation of receiving" it, "performs for another person" a listed act. The list includes selling or offering to sell real estate, negotiating a sale, "deals in options on real estate," and procuring a prospect or property for a sale. Section 1101.004 adds that a person is engaged in brokerage if, expecting valuable consideration, they perform or offer those acts "for another person."
Read with Section 1101.0045, the line is this. If you hold the contract or option as a principal and sell your own position, with the written disclosure, you are inside the exemption. If you are collecting a fee for finding a buyer for someone else's property, or you never held a real interest and are marketing a house you have no right to sell, you are describing brokerage. The statute does not define where a thin interest, such as a contract you can walk away from for free, stops counting. We did not find TREC guidance that draws that line, so treat it as an open risk.
| Situation | Reading of the statute |
|---|---|
| Contract in your name, written notice to seller and end buyer, you assign for a fee | Fits the 1101.0045(a) exemption |
| Assignment sold with no written disclosure of the equitable interest | Deemed brokerage under 1101.0045(b) |
| Disclosure made to the buyer only, not the seller (after January 1, 2024) | Condition (a)(2) not met on its face |
| Paid to market a property you have no contract on | Matches the broker definition in 1101.002 |
| Buy, take title, then resell in your own name | You are a principal selling your own property, not assigning an equitable interest |
What happens if you get it wrong?
Three provisions matter. Section 1101.351 says that unless a person holds a license, the person may not act as or represent that the person is a broker or sales agent. Section 1101.758 makes it an offense to act as a broker or sales agent without a license, and states that the offense "is a Class A misdemeanor." Section 1101.752 lets TREC, acting through the attorney general, bring an action to abate or enjoin a violation, and lets the attorney general or the county or district attorney bring the same action.
The statute text we read lists the criminal classification and the injunction route. It does not spell out fines or jail terms in those sections, so we are not quoting any. We did not research civil exposure to a seller or end buyer who feels misled, so treat the criminal and injunction provisions as the floor of the risk, not the ceiling.
The 2017 bill also gives the wording for the buyer side. Property Code Section 5.086, as enrolled, says that "before entering into a contract," a person selling an option or assigning an interest in a contract "must disclose to any potential buyer that the person is selling only an option or assigning an interest in a contract and that the person does not have legal title to the real property." That is a plain sentence you can put at the top of every assignment.
How does Texas compare with Oklahoma?
Texas regulates the disclosure but little else. Oklahoma, since SB 1075, regulates the whole transaction, from the wording of the contract to where the deposit sits. A form built for one state will leave gaps in the other. If you work both sides of the Red River, keep two sets of paperwork and do not assume that the Oklahoma cancellation right has a Texas twin. It does not, at least in the statutes covered here, so the protection a Texas seller gets comes mostly from the written notice and from the terms of the contract itself.
| Item | Texas | Oklahoma |
|---|---|---|
| Wholesaler license | None; license exemption in 1101.0045 | None; rules sit inside the License Code |
| Written disclosure to seller | Yes, since January 1, 2024 | Yes, before the contract is signed |
| Seller cancellation window | None in the sections we read | Two business days |
| Mandated contract wording | None in the sections we read | Boxed notice and listed contents |
| Penalty for skipping disclosure | Treated as unlicensed brokerage | Contract invalid and unenforceable by the wholesaler |
Our Oklahoma wholesaling law guide has the details of that state's statute. The Texas approach leaves more to your own contract and your own counsel, which is why a vague form is the common mistake here.
What should investors do on a Texas deal?
Use the statute as a checklist, then add the attorney review it does not give you.
- Give the seller a written notice. Say in a separate signed page that you hold or will hold an equitable interest and may assign it. Since January 1, 2024 this is part of the exemption.
- Give the end buyer the same notice. Add the Property Code sentence that you are assigning an interest and do not hold legal title.
- Make the disclosure before the contract. Property Code 5.086 says "before entering into a contract."
- Keep your role clear. Do not accept fees for finding buyers for properties you have no contract on.
- Watch your marketing. Advertising a house you do not control is the pattern closest to the broker definition.
- Pick the exit with care. Compare double closing versus assignment, since a double close makes you the owner for a moment.
- Consider a direct cash buyer. If you want a clean exit, submit the deal 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. Trevor Rice, who wrote this guide, is a licensed Texas real estate agent. Texas sellers can read our Texas page and see how we calculate an offer, and investors can see how our cash buyers work. For the mechanics of the contract itself, read our guide to contract assignment. For deal flow in specific metros, see Houston, Dallas, San Antonio, and Austin.
Frequently asked questions
Is wholesaling legal in Texas?
Yes, if you stay inside Section 1101.0045 of the Occupations Code. You may assign or sell an option or a contract to purchase without a real estate license if you do not use it to engage in real estate brokerage and you disclose the nature of your equitable interest in writing to the seller and to any potential buyer.
Do you need a real estate license to wholesale in Texas?
Not for a properly disclosed assignment of a contract you hold. If you skip the written disclosure, the statute says you are engaging in real estate brokerage, and acting as a broker without a license is a Class A misdemeanor under Section 1101.758. Whether your marketing and compensation amount to brokerage depends on the facts, so ask a Texas real estate attorney.
What changed in the Texas wholesaling law in 2024?
Senate Bill 1577 took effect January 1, 2024. It changed the disclosure from one made to a potential buyer to one made in writing to any seller or potential buyer. Before that, the statute did not say the disclosure had to be in writing or that the seller had to receive it.
When did Texas first regulate wholesaling?
Senate Bill 2212 added Section 1101.0045 to the Occupations Code effective September 1, 2017. It passed the Senate 30 to 0 and the House 143 to 0. The same bill added Section 5.086 to the Property Code, which has its own disclosure to potential buyers.
What does a Texas wholesaler have to tell the end buyer?
That the wholesaler is selling only an option or assigning an interest in a contract and does not have legal title to the property. Section 5.086 of the Property Code, as enrolled in 2017, requires this before the contract is entered into, and Section 1101.0045 requires a written disclosure of the nature of the equitable interest.
Does Texas give sellers a right to cancel a wholesale contract?
Not in the statutes we read. Unlike Oklahoma, Section 1101.0045 and Property Code Section 5.086 do not set a cancellation window or require specific contract wording. Ordinary contract law and the terms of the form you use still apply, so have an attorney review them.
Sources
Documents were read on October 24, 2026. Quoted language is from the sources below.
- Texas Senate Bill 2212, 85th Legislature, enrolled text: the original Section 1101.0045, the new Property Code Section 5.086, and the September 1, 2017 effective date.
- Texas Senate Bill 1577, 88th Legislature, enrolled text: the amended Section 1101.0045 and the January 1, 2024 effective date.
- Texas Real Estate Commission, summary of SB 1577: the Commission's description of wholesaling and the written notice to buyer and seller.
- Senate Research Center bill analysis of SB 2212: the stated purpose of the wholesaling disclosure.
- Texas Occupations Code, Chapter 1101: Sections 1101.002, 1101.004, 1101.351, 1101.752, and 1101.758. We read these sections through the Texas.Public.Law mirror of the Legislature's code because the official site loads its text with scripts.
Not legal advice. Statutes change and TREC may adopt rules or guidance. Confirm current law with a licensed Texas attorney.