AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Sponsor
Last action
2025-07-01
Official status
Effective date
Not listed
Plain English Breakdown
Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.
AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
Section 1 of the Act exempts an individual not engaged in the business of “wholesaling” real estate from needing to be a real estate licensee.
What This Bill Does
AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
Section 1 of the Act exempts an individual not engaged in the business of “wholesaling” real estate from needing to be a real estate licensee.
The business of wholesaling is when someone enters into an Agreement of Sale as a buyer, then markets the property and assigns that agreement to a different buyer and collects a fee for that assignment.
While this process is unobjectionable under certain circumstances, at other times, it is used as a means to charge an excessive assignment fee, which is “equity stripping” of money that should go to the seller.
The Act makes clear that marketing properties this way is the brokerage of real estate and must be done by a real estate broker.
Limits and Unknowns
This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.
Bill History
No action history is stored for this bill yet.
Official Summary Text
AN ACT TO AMEND TITLE 24 OF THE DELAWARE CODE RELATING TO REAL ESTATE BROKERS AND SALESPERSONS
Section 1 of the Act exempts an individual not engaged in the business of “wholesaling” real estate from needing to be a real estate licensee. The business of wholesaling is when someone enters into an Agreement of Sale as a buyer, then markets the property and assigns that agreement to a different buyer and collects a fee for that assignment. While this process is unobjectionable under certain circumstances, at other times, it is used as a means to charge an excessive assignment fee, which is “equity stripping” of money that should go to the seller. The Act makes clear that marketing properties this way is the brokerage of real estate and must be done by a real estate broker. This is based on similar laws in Pennsylvania.
Section 2 of the Act includes the business of wholesaling under the definition of real estate services. It also clarifies that a person engaged in the business of wholesaling must be licensed under Chapter 29 of the Delaware Code. Section 7 of the Act allows 270 day