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SB 3136

AN ACT RELATING TO BUSINESSES AND PROFESSIONS -- REAL ESTATE BROKERS AND SALESPERSONS

2026 Regular Session Introduced by Bob Britto and 2 co-sponsors

Rhode Island SB 3136 requires wholesalers to be licensed and imposes mandatory disclosures, three-day contract cancellation windows, and penalties to boost transparency and consume

06/23/2026 Signed by Governor
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WeVote Research Nonpartisan
Bill Summary · SB 3136

Summary of Bill SB 3136 (Rhode Island, 2026)

Purpose and intent

  • SB 3136 is an act relating to Real Estate Brokers and Salespersons. It introduces new licensing requirements and consumer protections for activities involving the sale or transfer of real estate interests, including transactions that involve the sale of equitable interests without transferring legal title (often referred to as wholesaling).
  • The act aims to ensure that individuals engaging in wholesale or assignment-type real estate activities are properly licensed and operate under transparent disclosure and cancellation provisions.

Key provisions and changes

1) Real estate licensure and definitions (sections 5-20.5-1 and 5-20.5-2)

  • Defines key terms:
    • Associate broker, real estate broker, and real estate salesperson.
    • Opinion of value, real estate, and the scope of real estate brokerage activities.
  • Clarifies who qualifies as a real estate broker or salesperson:
    • Individuals, partnerships, associations, and corporations engaged in listing, selling, purchasing, leasing, or negotiating real estate for compensation or with the expectation of compensation are considered real estate brokers.
    • The definitions cover advertising, directing or assisting in procuring buyers, or dealing with equitable interests in real estate.
  • Exemptions (a) and (b):
    • Exempts bona fide owners, lessees, or lessors managing their own property and their regular employees (with caveats about equitable interests), and those dealing with real estate held for investment.
    • Excludes certain activities by attorneys, trustees, receivers, appraisers in specific contexts, and public officers acting in official duties from being regulated as real estate brokers or salespersons.

2) New chapter: Wholesaling of Real Property (Chapter 34-51)

  • Adds a new regulatory framework for wholesaling real estate:
    • Defines “wholesaler,” “assignment contract,” “wholesale contract,” and related terms.
    • Requires wholesalers to hold a valid real estate license or qualify for licensing exemption (consistent with the real estate licensing framework in 5-20.5).
  • Licensing requirement (34-51-2):
    • Wholesalers must be licensed as real estate brokers or salespersons, or qualify for exemptions.
  • Disclosure and contract requirements (34-51-3 and 34-51-4):
    • Wholesale contracts: Wholesalers must disclose in writing that they may assign the contract to another party for compensation; contracts must include a three business-day cancellation window with an opportunity to consult an attorney or advisor; sellers may cancel during this period without penalty (deposit, if any, may be refunded).
    • Assignment contracts: Wholesalers must disclose in writing that they hold an equitable interest but not the legal title; buyers must be informed of a three business-day cancellation window with access to counsel/advisor; buyers may cancel within that period without penalty.
  • Right of cancellation (34-51-5):
    • Real estate transfers subject to wholesale or assignment contracts may not occur until the cancellation periods have expired.
    • The cancellation right cannot be waived by any party; failure to include required disclosures allows the other party to cancel at any time before consummation, with refunds of deposits where applicable.
  • Penalties for violations (34-51-6):
    • First offense: $500 fine; subsequent offenses: $1,000 fine.
    • civil liability: violators may owe back at least the amount of fees/compensation received, up to three times that amount, per court determination.

Who is affected

  • Wholesalers and entities engaged in securing, negotiating, or facilitating the sale of real estate equitable interests without taking title.
  • Real estate brokers and salespersons who may be involved as principals or brokers in wholesaling transactions.
  • Property owners/sellers and prospective buyers involved in wholesale or assignment-based transactions, due to mandatory disclosures and cancellation rights.
  • Attorneys and other professionals advising clients in wholesale transactions, given the new three-day consultation right.

Procedural and timeline aspects

  • Effective date: January 1, 2027.
  • The bill was introduced March 20, 2026, referred to the Senate Judiciary Committee, with subsequent scheduled actions in 2026 (hearing/consideration noted for April 28, 2026) and a proposed substitute as of April 27, 2026.
  • Violations incur monetary penalties and potential civil liability, reinforcing compliance with the new disclosures and cancellation provisions.

Overall impact

  • Introduces comprehensive licensing applicability to real estate activities involving equitable interests and wholesaling.
  • Establishes standardized disclosure requirements and a consumer-protection framework (explicit cancellation rights and timelines).
  • Creates enforceable penalties and civil liability to deter noncompliance.
  • Aims to increase transparency in wholesaling transactions and safeguard property owners and buyers.

Compiled from official sources — confirm details with the bill’s official record.

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