As a licensed real estate broker in Louisiana, I value the opportunities wholesalers bring to the market. I’m always open to mutually beneficial deals, but I must also prioritize transparency, due diligence, and compliance with Louisiana law.
If you’re still interested in offering your assigned property after reading the below, I’d be happy to discuss.
Property Information Requirements
To move forward with any wholesale assignment, I require complete details, including price, location, property disclosures and relevant documentation or terms as described in the sections below.
My practices are guided strictly by Louisiana real estate licensing laws as enforced by the Louisiana Real Estate Commission (LREC). I understand concerns about being “cut out” of deals, but please know my communication with the property owner is a legal requirement, not a business preference. If that makes you uncomfortable, I may not be the right broker for you.
Direct Contact with the Owner
In compliance with Louisiana law, I must have direct contact with the owner for the following reasons:
- To obtain authorization to enter the property
- To enter into a One-Time Showing Agreement (as §1455 prohibits offering real estate for sale without the owner’s written consent)
- To present offers and negotiate the sale of the property
This direct contact is not intended to exclude you from the deal — it’s simply a legal obligation I must follow as a broker.
Legal Considerations for Wholesalers
It’s important to understand that Louisiana operates under a civil law system, which differs significantly from common law states. As a result, the wholesale practices that may be the norm elsewhere are not always legal here.
Specifically, an assignee does not have the legal standing or ownership interest required to:
- Enter into a showing agreement
- Grant access to a property
- Set a price or negotiate the purchase of a property
Engaging in these activities without a license is considered the illegal practice of real estate, which can result in significant penalties:
- R.S. §1458: Up to a $2,000 fine and/or imprisonment for up to 5 years.
- R.S. §1459: Up to a $5,000 civil penalty, plus attorney fees.
- R.S. 37:1431: Defines “real estate activity” and “dealing in options,” creating prima facie evidence of unlicensed activity.
Deposit Policy
I have received contracts from wholesalers that require the buyer to make large, non-refundable deposits directly to the assignee. This arrangement is not permissible when a licensed broker is involved.
According to §1449.1, the licensee must present the Residential Agreement to Buy or Sell form directly to the owner. This form outlines conditions under which deposits are refundable, and the owner must sign to indicate acceptance, rejection, or counteroffer. Additionally, deposits are to be held by a third party — typically the attorney or title company chosen by the buyer for closing — not by the owner or assignee.
Final Note
I welcome the chance to work with wholesalers who are committed to lawful, transparent practices. If you can provide the required property details and are comfortable with these compliance standards, I’ll be glad to move forward and explore opportunities together.