North Carolina’s real estate landscape is shifting faster than most people realize — especially when it comes to wholesaling, assignments, novations, and the legal responsibilities surrounding them.

And while many agents are running from investors or wholesaling altogether, I’m not.

I am wholesaler-friendly —
✔️ as long as you are compliant,
✔️ transparent,
✔️ working with legal counsel, and
✔️ have your processes structured correctly.

This blog breaks down the real truth about wholesaling and novations in NC: what’s legal, what’s risky, what’s changing, and how investors, wholesalers, and licensed REALTORS® can continue to work together without crossing regulatory lines.

1. Where NC Law Stands on Wholesaling (as of 2025)

Contrary to the rumors, wholesaling is not banned in NC.
But the state is tightening the guardrails fast.

NC Law Already Says This:

If you negotiate real estate for others for compensation without a license, you are performing unlicensed brokerage, which is illegal in NC.

The NC Real Estate Commission (NCREC) has already issued strong warnings:

Assignments are legal ONLY when the wholesaler is a bona fide buyer.

A wholesaler crosses the line into illegal activity when they:

• Market the property itself without owning it

• Negotiate between seller and end buyer

• Offer to “find a buyer” for someone else’s home

• Collect a fee for activities that legally require a license

• Hold EM/DD for others

• Advertise a property as if they are the listing agent

This is why many wholesalers are now restructuring — and why REALTORS® must protect their licenses.

2. Why Wholesaling Is Still Happening in NC

Because the legal structure of a contract assignment and double close is still allowed.

Wholesalers who stay in the legal lane are doing things like:

• Putting properties under contract in their own name or LLC

• Assigning that contract once to an end buyer

• Or completing double closings (A→B→C)

• Not marketing properties they don’t own

• Not negotiating between two parties

• Not acting like an unlicensed agent

Wholesaling isn’t dead — it’s evolving.

And the wholesalers who are adapting are the ones thriving.

3. HB 797 and the Future of NC Wholesaling

HB 797 (the bill that would require wholesalers to follow broker licensing law and give sellers a 30-day cancellation right) passed the NC House but has not fully passed the Senate yet.

That means:

👉 It’s not law — yet.
👉 But it shows EXACTLY where NC is headed.

The state’s message is clear:

If you’re acting like a broker, you’re going to be treated like one.

This is why professional systems, legal counsel, and transparency matter more than ever.

4. What Is a Novation — and How It’s Being Used in NC

A novation is a new contract that replaces the original one.
In investment real estate, it often looks like:

1. Investor signs contract with seller

2. Investor finds a retail buyer

3. All parties agree to replace the original contract with a new one

4. Seller signs a new contract directly with the end buyer

5. Investor is compensated through a separate agreement

Key points:

• Novations are legal under NC contract law

• All parties must clearly agree

• Lenders must approve the structure

• Attorneys must draft the paperwork

• Investors cannot use a novation to “hide” brokerage behavior

Novations are not a loophole — they’re simply another tool when done correctly and legally.

5. How REALTORS® Are Working with Wholesalers in NC Right Now

Most compliant agents (including me) operate under these guardrails:

✔️ 1. I’ll work with wholesalers — IF they’re compliant

I am wholesaler-friendly.
But I do not gamble with my license.

To work together, I require:

• Proof of equitable interest (contract/assignment agreement)

• Confirmation of legal representation

• Clear disclosure of how the wholesaler is being paid

• No unlicensed negotiation with my clients

• No attempts to market properties as if they are listed

• No fee-sharing unless the wholesaler is licensed

✔️ 2. I represent investor BUYERS on wholesale deals

My duties remain the same:

• Evaluate the deal

• Protect the buyer

• Run comps, ARV, rehab estimates

• Explain assignment risk, due diligence structure, and timelines

• Ensure buyers use their OWN attorney

✔️ 3. I will list properties for investors — once they actually own them

I don’t list properties that wholesalers only have under contract.
I list properties after you close.

✔️ 4. I do not participate in illegal compensation structures

No referral fees to unlicensed wholesalers.
No “assignment splits.”
No “marketing fee” disguised as brokerage.

✔️ 5. Attorneys drive the legal structure

Every novation, assignment, double close, or special arrangement goes through a real estate attorney.

That keeps everyone protected.

6. If You’re a Wholesaler, Here’s What You MUST Have Lined Up Before We Work Together

To collaborate professionally, I require:

1. Legal Counsel

You need your own RE attorney who understands wholesaling, assignments, novations, and double closings.

2. Real Contracts Prepared by an Attorney

No downloaded PDFs.
No patched-together templates.
Contracts must be attorney-drafted or attorney-approved.

3. Full Transparency

I need to know:

• Your role

• Your compensation

• Your equitable interest

• Who you represent

• Who holds DD/EM funds

4. No Misrepresentation

You cannot:

• Market as if you own the property

• Negotiate with buyers you don’t represent

• Collect fees that require a license

5. Professional Conduct

Investors and REALTORS® work well together when:

• Timelines are clear

• Communication is consistent

• Assignments are valid

• Attorneys are looped in early

I’m here to collaborate — not babysit chaos, and not put anyone’s license at risk.

7. Why Licensed REALTORS® Need to Understand This (Not Avoid It)

The market is shifting.
Investors are a major part of NC real estate.

Avoiding wholesaling doesn’t protect you —
Understanding it does.

When REALTORS® know:

• What’s legal

• What’s not

• How assignments work

• How novations are structured

• How wholesalers earn

• What the red flags are

…they can:

• Protect their clients,

• Protect their license,

• Expand their business,

• And create strong investor partnerships.

This is where real opportunity lies.

Final Thoughts: Collaboration Is the Future — But Compliance Is the Foundation

For investors and wholesalers:
I want you to win.
I want you to scale.
And yes — I will work with you.

But only if it’s done the right way.

For REALTORS®:
You don’t have to fear wholesaling.
You just need to understand where your guardrails are.

North Carolina’s laws are evolving, and the days of sloppy, unstructured, unlicensed wholesaling are coming to an end — but professional, compliant, transparent wholesaling is absolutely still alive, and investors who adapt will thrive.

And if you’re one of those investors — I’d love to work with you.

Let’s Connect

📲 Call or text: (336) 567-5843
Brokered by Real Broker, LLC — NCREL #312309
Jessica J. Baldovinos | @JessicaJBRealtor

Book your 15-minute introduction call:
👉 https://calendly.com/jessicajbrealtor