If you've put your Charleston house online or answered a "we buy houses" postcard, you may have heard the word "wholesaler." A wholesaler signs a contract to buy your house, then tries to find a different buyer and pass the deal along for a fee. In 2024 South Carolina wrote wholesaling into its real estate licensing law. Here's what changed, why it matters to you as a seller, and how to tell who you're dealing with.
This is general information, not legal or tax advice. We're a cash home buyer, not attorneys. If you have questions about a contract you've signed, talk to a South Carolina real estate attorney.
What H.4754 changed
H.4754 became 2024 Act No. 204. It added a definition of wholesaling to SC Code §40-57-30(44), effective May 21, 2024. In plain terms, the law describes wholesaling as having a contract to buy a home from its owner, then marketing that property to a different buyer before taking legal ownership. It also says that advertising or marketing real estate owned by someone else, with the expectation of being paid, falls under the definition of a "broker" and requires a real estate license.
The act also made other changes:
- Licensees are barred from wholesaling. Under §40-57-350, brokerage firms and their agents may not engage in, represent others in, or assist others in wholesaling.
- A rule on marketing a "contractual position." §40-57-135(E) allows an ad that markets a contract position only if it doesn't imply, suggest or purport to market the underlying property. That rule took effect May 15, 2025, per the SC Department of Labor, Licensing and Regulation's notice.
Some websites call this law "S.B. 144" or say all of it started in May 2025. According to the bill text, the definition took effect May 21, 2024, and the contract-marketing rule a year later.
What the Real Estate Commission said
On November 14, 2024, the SC Real Estate Commission issued an advisory opinion on wholesaling and assignment of contracts. Its main points:
- Wholesaling has four parts: a contract interest in the property, marketing before ownership, an expectation of being paid, and a legal tool (such as an assignment) to transfer the contract.
- An assignment combined with marketing and expected payment "qualifies as wholesaling and is prohibited" for someone without a license. Assigning to your spouse or your own company is not wholesaling.
- Marketing a contract without revealing the property is "practically impossible." Photos, the address, the tax map number, beds and baths, condition, the neighborhood or rent history all identify it.
- A disclaimer such as "we only sell the contract" doesn't fix the problem.
- "Marketing" is read broadly: the MLS, social media, Facebook groups, private email lists and even word of mouth.
The Commission can issue cease-and-desist orders against unlicensed people. For you as a seller, the bigger point is practical: if the person who signed your contract plans to find someone else to buy, your closing depends on a buyer you've never met.
Why it matters to a seller
When a contract is passed to another investor, a few things can go wrong for the owner:
- Delays. The closing date may slip while the first party looks for a buyer.
- A lower price later. If no one bites at the agreed price, you may be asked to accept less.
- Strangers at the house. Other investors may want to walk through your home.
- A contract that falls through. If no buyer is found, the deal can be cancelled, and you've lost weeks.
How to tell a buyer from a wholesaler
A real buyer intends to close in its own name with its own funds. Look for these signs:
| Ask about | A direct buyer | A warning sign |
|---|---|---|
| Buyer named on the contract | The company that will take title | A name followed by "and/or assigns" |
| Money to close | Can show proof of funds | Vague answers, or funds "from partners" |
| Visits after signing | One walkthrough, then closing | Repeated visits from new "partners" or "contractors" |
| Photos and details | Used for its own pricing | Your house shows up in online ads or buyer emails |
| Closing | A named SC closing attorney | Unsure who will handle the closing |
None of these alone proves anything, but if several show up together, ask more questions before you sign.
Questions to ask any cash buyer
"Will you be the buyer on the deed?"
Ask who will take title at closing. The answer should be the company or person you're talking to.
"Can the contract be assigned?"
Read the buyer's name line and any assignment clause. You can ask for a contract that can't be assigned.
"Can you show proof of funds?"
A bank letter or statement showing the buyer can close in cash.
"Who is the closing attorney?"
South Carolina requires a licensed attorney to handle or supervise the closing. A buyer should be able to name the firm.
"Will you advertise my house to other buyers?"
The answer should be no.
"What happens if you don't close?"
Know how the contract can be ended, and by whom, before you sign.
You can also have your own South Carolina attorney go over any contract before you sign it. That's your right in any sale.
How we work
We're the buyer. We don't put your house under contract and shop it to someone else. We buy your house ourselves, with our own funds, and close in our own name at a South Carolina attorney's office. We don't assign or wholesale contracts, we don't list homes, and we never advertise your house to other buyers before we own it. Selling property you own is exempt from SC real estate licensing (§40-57-240(1)), and buying for our own account isn't brokerage.
What we offer: a written cash offer within 24–48 hours of seeing the house or getting the details we need; closing in as little as 7–14 days when the title is clear, on a date you choose; no fees or commissions, with closing costs paid by us; and we buy as-is. Our offer will usually be less than what you might get listing with an agent after repairs. That's the trade for speed, certainty, no repairs and no fees. Run the numbers in our cash offer vs. listing calculator, and feel free to get an agent's opinion too.
Common situations where this comes up
Sellers in a hurry are the ones most often approached by many buyers at once. That includes families selling an inherited house, owners of houses that need repairs, and people relocating out of Charleston. We buy across the area, from West Ashley to Mount Pleasant.
Ready to talk to the actual buyer? Get your cash offer or call Call (727) 300-6656.