Oklahoma’s New Wholesaling Law (SB 1075): What Real Estate Investors Need to Know

Oklahoma’s New Wholesaling Law (SB 1075): What Real Estate Investors Need to Know

Effective November 1, 2025

A major change is coming to Oklahoma’s real estate investing landscape. Senate Bill 1075 (SB 1075) officially regulates wholesaling in residential real estate, adding new rules designed to protect homeowners and increase transparency in property transactions.

If you buy and assign contracts or invest through wholesale strategies this new law directly impacts how you operate in Oklahoma.

What Is Wholesaling?

Wholesaling is when an investor enters into a purchase agreement with a seller and then assigns that contract to another buyer for profit, without ever taking ownership of the property.
For example:

• A wholesaler signs a contract to buy a home for $100,000.

• They find another buyer willing to pay $130,000.

• The wholesaler keeps the $30,000 difference (known as an assignment fee).

While legal when done properly, some wholesalers have operated in gray areas, misleading homeowners or failing to disclose their intent. SB 1075 aims to fix that.

Key Provisions of SB 1075

Beginning November 1, 2025, all wholesalers, licensed or unlicensed, must follow these rules:

1. Full Disclosure to Homeowners

Before signing any agreement, wholesalers must disclose in writing:

• Their intent to sell or assign the property at a higher price.

• That the homeowner should seek legal advice before signing.

• That the homeowner has the right to cancel within two business days without penalty.

Failure to include these disclosures makes the contract invalid and unenforceable and the homeowner gets to keep any earnest money.

2. Homeowner Cancellation Rights

Homeowners can now:

• Cancel a wholesale contract within two business days for any reason.

• Cancel at any time if the wholesaler fails to include the required disclosures.

The Oklahoma Real Estate Commission has even created a standardized Cancellation of Wholesale Contract form to make this process simple.

3. Restrictions on Wholesaler Behavior

Wholesalers are now prohibited from:

• Acting as advisors, consultants, or representatives for homeowners.

• Misrepresenting themselves as licensed professionals (unless they truly hold a license).

• Placing liens or clouds on title to the property.

Earnest money deposits must also be held in an FDIC-insured Oklahoma bank escrow account, not in personal or out-of-state accounts.

Why It Matters for Investors

If you’re in real estate investing, especially wholesaling or flipping:

• You must use compliant disclosure forms and cancellation clauses.

• Ensure your contracts clearly outline your intent to assign or resell.

• Keep accurate escrow records and work with local title companies.

Violating these requirements could void your contract and expose you to penalties or loss of profit.

How Investors Can Stay Compliant

1. Review your contracts and update them with SB 1075-compliant language.

2. Use the official OREC cancellation form with every deal.

3. Avoid offering advice or presenting yourself as an agent unless licensed.

4. Deposit earnest money only in approved Oklahoma financial institutions.

5. Seek legal review of your wholesale paperwork before November 2025.

SB 1075 changes the way wholesaling works in Oklahoma, bringing accountability and transparency to protect both homeowners and ethical investors.
If you wholesale properties, now is the time to adjust your process, review your contracts, and ensure full compliance.

At Okc Management, we stay informed on every change impacting Oklahoma real estate. Whether you’re a property owner, landlord, or investor, our team can help you navigate these new regulations with confidence and integrity.