Wholesaling gets a makeover in Oklahoma

By: J. David Chapman/October 30, 2025

Wholesaling in real estate has become a national talking point, and Oklahoma is stepping in to bring clarity and consumer protection to the practice. This November, Senate Bill 1075 goes into effect, giving homeowners new rights and holding wholesalers, both licensed and unlicensed, to higher standards.

So, what exactly is wholesaling? In real estate, wholesaling occurs when someone enters into a purchase contract for a property with the intent to sell or assign that contract to another buyer for profit, rather than purchasing the property themselves. It can be a legitimate investment strategy, but without guardrails, it’s also been an area ripe for abuse. Some unlicensed wholesalers have misrepresented themselves, marketed homes they didn’t own, or pressured homeowners into signing contracts they didn’t fully understand.

Senate Bill 1075 doesn’t ban wholesaling—it simply requires transparency. Before a homeowner signs a contract, a wholesaler must now clearly disclose their intent to resell the property at a higher price, suggest that the homeowner seek legal advice, and provide a two-business-day cancellation window without penalty. The law also prohibits wholesalers from posing as advisors, consultants, or licensed professionals if they’re not, and prevents them from filing liens or otherwise clouding a property’s title.

If a contract is missing any of the required language, including the cancellation notice, it becomes invalid and unenforceable, and any earnest money must be refunded. All deposits must also be held in an FDIC-insured bank. These rules apply to residential transactions only and cover both licensed and unlicensed wholesalers.

The Notice of Cancellation form is now on the Oklahoma Real Estate Commission website and OREC will continue public outreach ahead of the law’s November 1 effective date.

As a Real Estate Commissioner, I view this legislation as a win for both sides. It preserves legitimate wholesaling for investors who play by the rules while giving homeowners the transparency and protection they deserve. Real estate transactions should always be conducted in good faith, and SB 1075 reinforces that principle.

If you’re considering selling your home directly to a wholesaler, read the disclosures carefully, take advantage of the cancellation period, and ask a licensed real estate professional for a free market analysis before signing.

Senate Bill 1075 doesn’t end wholesaling but will help make it a legitimate business practice.

J. David Chapman is the chair of finance and professor of real estate at The University of Central Oklahoma (jchapman7@uco.edu).