Tn Sb909 Wholesaling

TN SB 909 Wholesaling — Finance, Appraisal & Math ## Overview Tennessee's SB 909 wholesaling law directly impacts how real estate math, contract assignments, and licensing rules intersect on the Tennessee-specific portion of your exam. Understanding what wholesaling is, how it's regulated, and where the financial mechanics come in will help you avoid tricky TN-specific questions. --- ## What Is Real Estate Wholesaling? Wholesaling is a strategy where an investor places a property under contract (as the buyer) and then assigns that contract — or simultaneously closes — to an end buyer, typically for a profit called an assignment fee. The wholesaler rarely takes title to the property; instead, they sell their equitable interest (their right to purchase under the contract). ### Two common wholesale structures: | Method | How It Works | Who Takes Title | |---|---|---| | Contract Assignment | Wholesaler assigns their purchase contract to an end buyer for a fee | End buyer takes title directly from seller | | Double Close (Simultaneous Close) | Wholesaler buys the property, then immediately resells it | Wholesaler briefly holds title | --- ## Why SB 909 Matters in Tennessee Tennessee SB 909 established that marketing or selling equitable interest in real property for compensation constitutes a licensed real estate activity. In plain English: if you are finding distressed properties, putting them under contract, and charging a fee to hand that contract to someone else — you are performing an act that requires a Tennessee real estate license (or you must be a principal, meaning you actually own the equitable interest and are selling your own property). ### The Core Legal Distinction - Licensed wholesaler: A licensed affiliate…