Not in every state, but we recently learned that in Illinois, real estate wholesaling activities may require a real estate license if the wholesaler’s activities meet certain criteria. According to the Illinois Real Estate License Act, a person must have a real estate license if they engage in any of the following activities:
- * Selling, leasing, or renting real estate for others
- * Negotiating or attempting to negotiate any transaction involving the sale, lease, or rental of real estate for others
- * Advertising or holding themselves out as being engaged in the business of selling, leasing, or renting real estate for others
- * Assisting or directing in the procuring of prospects, calculated to result in the sale, lease, or rental of real estate for others
Therefore, if a wholesaler is engaging in any of the above activities, they may be required to have a real estate license in Illinois. However, if the wholesaler is not engaging in any of these activities and is only assigning contracts or otherwise facilitating the sale of real estate between two parties, a license may not be required.
It’s important to note that real estate laws and regulations can be complex, so it’s always a good idea to consult with a real estate attorney or a licensed real estate broker to ensure that you are in compliance with all applicable laws and regulations in Illinois.
