The proposed bill aims to establish the West Virginia Abolishment of Wholesaling Act, which will formally prohibit the practice of wholesaling in the state. It introduces new definitions relevant to the act, including terms such as "Commission," "designated broker," "licensee," and "wholesaler." The bill clarifies that wholesaling involves making a profit from the transfer of equitable interests in residential real property, defined as properties with fewer than five dwelling units. The legislation explicitly states that wholesaling is illegal in West Virginia and outlines the rights of sellers and buyers in the event of a wholesaling transaction, allowing them to cancel contracts without penalty and retain or receive refunds of earnest money.

Additionally, the bill provides exceptions to the definitions of "real estate broker" and "real estate salesperson," allowing certain individuals and entities, such as bona fide property owners, attorneys, auctioneers, and public officers, to engage in specific real estate activities without being classified as brokers or salespersons. However, it emphasizes that publicly marketing an equitable interest in a real estate contract does not fall under these exceptions. The Real Estate Commission is tasked with overseeing the enforcement of these prohibitions and making necessary rulings related to wholesaling practices.

Statutes affected:
Introduced Version: 30-40A-1, 30-40A-2, 30-40A-3