Bill
HB 797
HB 797 treats residential wholesaling as real estate brokerage, requires licensure, and gives homeowners a 30-day cancellation with refunds and mandatory disclosures.
Status & Timing
- Bill: HB 797 — "Residential Property Wholesaling Protection" (NC).
- Effective date (as written): October 1, 2025. Applies to purchase contracts entered into on or after that date.
- Rulemaking: North Carolina Real Estate Commission authorized to adopt implementing rules.
Purpose / Intent
- Clarify that residential property wholesaling and related transactions constitute real estate brokerage activity requiring licensure.
- Protect homeowners from unfair or deceptive practices commonly associated with “we buy houses” / wholesale contract transactions by (a) defining the activity, and (b) giving homeowners a statutory cancellation right and disclosure requirements.
Key definitions added or clarified
- “Residential property wholesaling or related transactions” includes any of the following:
- Soliciting a homeowner to enter a purchase contract for the homeowner’s residential property (unless the buyer will use the property as his/her residence).
- Marketing, assigning, or selling a purchase contract (or equitable interest) in residential property for a fee or other consideration.
- Selling/offering to sell, buying/offering to buy, negotiating or dealing in contracts or options for residential property or equitable interests.
- “Homeowner” = record or equitable owner(s) of residential property.
- “Residential property” = real property with one or more dwelling units used or held out for individuals to live in.
Major provisions & requirements
- Licensure: Wholesaling and the defined related activities are explicitly included within the statutory definition of “real estate broker,” bringing them under the licensing regime.
- 30‑day cancellation right:
- Homeowners may cancel a purchase contract until midnight of the 30th day after signing, or until conveyance of deed/title — whichever occurs first.
- The right to cancel is non‑waivable.
- Notice and refund procedures:
- Cancellation notice may be delivered by certified mail or other bona fide delivery (including electronic), effective on postmark/electronic transmission/date deposited.
- Within 10 business days of receipt of cancellation, all payments made by the homeowner must be refunded and the seller/broker must acknowledge the contract is void. Earnest money remains the homeowner’s property.
- Homeowner who cancels is not liable for damages.
- Contract disclosures:
- The purchase contract must include, in at least 14‑point font immediately above the homeowner’s signature:
- Statement of the 30‑day cancellation right (and delivery methods).
- Mailing/electronic/physical addresses for delivery of cancellation.
- Statement that payments will be refunded within 10 business days and homeowner won’t be liable for damages.
- Wholesaler must give the homeowner an exact copy of the contract containing these disclosures at signing.
Enforcement & remedies
- A violation of this Article is an unfair or deceptive trade practice under G.S. 75‑1.1.
- Aggrieved parties may bring civil actions and seek relief available under Chapter 75; recoveries are not offset by any payments the homeowner received in the transaction.
- The Attorney General is empowered to enforce the provisions.
Who is affected
- Homeowners who receive solicitations from wholesalers / “we buy houses” operators.
- Real estate wholesalers, investors, brokers, and salespersons who market, assign, or deal in purchase contracts or equitable interests.
- North Carolina Real Estate Commission and Attorney General (administration, enforcement, rulemaking).
Potential impacts
- Increased consumer protections for homeowners (rescission, refund, mandatory disclosures).
- Regulatory compliance costs and licensure requirements for firms/individuals engaged in wholesaling and contract-assignment business models.
- Private and public enforcement exposure for noncompliance (civil liability under unfair/deceptive practices law).
Compiled from official sources — confirm details with the bill’s official record.
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