Wholesaling Disclosure Requirements for Brokers and Principal Brokers

June 2025

If you are a licensed real estate broker or principal broker engaging in residential property wholesaling as a principal in the transaction, not as an agent representing someone else, you should know that wholesaling is considered a personal transaction under Oregon Administrative Rule (OAR) 863-015-0145. In other words, you are representing yourself in the deal.

What You Must Disclose

If you wholesale property while licensed, you must comply with both sets of disclosure requirements:

• Personal Transaction Disclosure (OAR 863-015-0145)
• Wholesaling Disclosure (House Bill 4058, chapter 3, 2024 Laws)

Personal Transaction Disclosure

When you are the principal in a wholesaling transaction, you must disclose that you are a real estate licensee:

• On all advertising.
• In writing on at least the first written document concerning the transaction.
• State that you are representing yourself as the buyer or seller.

Wholesaler Written Disclosure

Starting July 1, 2025, you must also provide the Residential Property Wholesaler Written Disclosure for real estate licensees:

• To potential buyers and potential sellers before entering into a contract.
• To any broker or principal broker assisting you in marketing or listing the property.
• To any broker or principal broker assisting a potential buyer in purchasing the property.
• In all advertising of the property. (Social media is exempt if it links to a separate page with the disclosure.)

Supervision and Recordkeeping Requirements

Brokers

You must conduct wholesale transactions under the supervision of your principal broker and all documents and funds must go through your principal broker.

Principal Brokers

You must handle your wholesaling transactions as you would for your professional real estate transactions. You must also follow all recordkeeping requirements per OAR 863-015-0250.

Inactive Licensees

If you hold an inactive license while wholesaling, you must place all funds in escrow and keep documents as required for principal brokers per OAR 863-015-0250.

Corporate/Entity Ownership

If you own more than 5% in a business that engages in wholesaling, and you participate in negotiations, these disclosure requirements apply to those transactions as well.