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Bill

SB 160

Residential Property - Assignment of Contracts of Sale - Disclosure Requirements and Rescission

2025 Regular Session Introduced by Jeff Waldstreicher

Maryland requires real estate wholesalers to disclose assignment contract intent before signing and grants buyers three-day rescission rights, protecting residential property purchasers from undisclosed middleman transactions.

Approved by the Governor - Chapter 509
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Bill Summary · SB 160

Legislative bill overview

SB 160 requires real estate wholesalers and assignment contract users to disclose their intent to assign residential property sales contracts before the buyer signs, and gives buyers a rescission right within three business days if they weren't properly informed. The bill establishes penalties for non-compliance and clarifies when assignment contracts are permissible in residential real estate transactions.

Why is this important

Real estate assignment contracts—where a buyer contracts to purchase property with the intent to resell the contract rather than the property itself—have grown in popularity but operate in a gray area that can trap unsuspecting homebuyers. This bill protects consumers from discovering too late that they've entered an unfavorable contract with a middleman rather than a direct seller, a common practice in wholesale real estate.

Potential points of contention

  • Impact on wholesale real estate market: Wholesalers and investors argue disclosure requirements and rescission rights increase transaction costs and uncertainty, potentially reducing deal velocity and profitability in this segment
  • Definition and scope clarity: Questions remain about what constitutes an "assignment" versus other contract structures, and whether the disclosure requirements create loopholes or unintended consequences
  • Consumer confusion: Buyers may still misunderstand complex real estate contracts even with disclosures, raising questions about whether this adequately addresses the underlying information asymmetry

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

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