Virginia New Regulations FYI · Doing Deals Remotely

Virginia New Regulations FYI

New Wholesaling Regulations in VA

There is a new regulation about wholesaling in Virginia, but before I talk about it I want to say something important. Please do your homework. Misinformation is everywhere. The Youtube and TikTok gurus are already making videos claiming wholesaling is illegal in the state of Virginia now.

This is how misinformation spreads. Anyone get get on social media and share unchecked facts. And anyone choosing not to use their own common sense, will take these things at face value instead of doing their own homework first. Please do your homework and find things out for yourself. Don't rely on anyone else to do it for you. Not even me.

Rant over. Let's talk about what this regulation (HB917) is all about. Essentially the state added to the definition of what constitutes real estate brokering (which requires a license) and included the verbiage

Department of Professional and Occupational Regulation; definition of a real estate broker. Adds to the definition of "real estate broker" any individual or business entity who sells or offers to sell, buys or offers to buy, negotiates or otherwise deals in real estate contracts, including assignable contracts, on two or more occasions in any 12-month period for compensation or valuable consideration. The bill contains technical amendments."

Which essentially means that if you are assigning more than once a year, you need to have a real estate license. Which is basically the same rule that Illinois put into place not that long ago. Did you see the word illegal in that excerpt? I didn't! Wholesaling is not illegal anywhere. All that's changed in VA is you have to be licensed if you want to complete assignments of contract. There are no limits to double closings and no limits to the number of homes you can buy and then immediately re-sell (whole-tailing).

So don't freak out. Either get licensed or start double closing your deals.

If you want to read the bill yourself, here is the link: https://lis.virginia.gov/cgi-bin/legp604.exe?241+sum+HB917

Knowledge is priceless. Do your own fact checking and stop letting other people spoon feed you what THEY want you to know. There is no excuse for being misinformed in 2024.

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