TULSA, Okla. — A new Oklahoma law aims to protect vulnerable homeowners from predatory real estate wholesaling practices while preserving legitimate business operations in the industry.
Senate Bill 1075 requires real estate wholesalers to provide clear written disclosures before contracts are signed and gives homeowners a 48-hour cancellation period without penalty. The legislation specifically targets practices that often exploit seniors, non-English speakers and financially distressed homeowners.
"We're going to help protect the public from what we would refer to as bad actors in the wholesaling business, but also we're going to provide guidelines for those that want to do it and do it properly," said Dr. David Chapman, Oklahoma Real Estate Commissioner.
Real estate wholesaling involves contractors who put homes under contract with homeowners, then sell those contracts to investors or other buyers for a profit without ever purchasing the properties themselves.
These businesses often advertise through street corner signs saying "we buy houses" or through unsolicited phone calls, emails and text messages.
Jennifer Moody experienced the downside of this practice firsthand when she tried to sell her home quickly.
"We looked into doing one of those quick, sell the house for cash deals," Moody said.
Instead of a quick sale, her house remained unsold for over a year. The contract she signed with a Tulsa property buyer wasn't actually to sell the home to him directly.
New protections for homeowners
Under SB 1075, wholesalers must clearly disclose they don't intend to buy the property themselves and must inform homeowners of their right to seek legal counsel. The law also prohibits wholesalers from filing liens on properties that could block future sales.
All wholesale contracts must now include the wholesaler's contact information, payment terms and a standardized cancellation notice developed by the Oklahoma Real Estate Commission. If any required elements are missing, the contract becomes invalid and unenforceable, with homeowners entitled to keep any earnest money provided.
The legislation also requires all earnest money deposits for wholesale transactions to be held in Oklahoma FDIC-insured banks, reinforcing financial security for sellers.
"Currently, predatory wholesalers often use misleading tactics to pressure homeowners into quick sales," said Bailey Crotty, Oklahoma Real Estate Commission Executive Director. "SB 1075 corrects those imbalances, deterring predatory practices while supporting transparency and trust in every transaction."
Legitimate wholesaling continues
The new law doesn't eliminate wholesaling entirely, recognizing it serves a legitimate purpose in the real estate market for homeowners who need to sell quickly.
"Wholesaling plays a legitimate role in the real estate market," said Matt Holder, Oklahoma Real Estate Commission Education Director. "Every homeowner's situation is different. Sometimes, time is the driving factor, and wholesalers can provide an option for sellers who need to move quickly."
Chapman recommends homeowners consult with licensed real estate professionals before making any property sale decisions.
"Try to always have somebody, a licensed real estate professional licensed with the Oklahoma Real Estate Commission that you can get advice from," Chapman said.
The Oklahoma Real Estate Commission encourages homeowners to research their property's value before engaging with any buyer and can request free comparative market analyses from any licensed Oklahoma brokerage.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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