Residential Property - Assignment of Contracts of Sale - Disclosure Requirements and Rescission

New protections for wholesale home sales

For contracts signed on or after October 1, 2025, Maryland protects parties in wholesale sales of owner-occupied properties with four or fewer single-family homes, excluding sales under Maryland Rule 14-215. Before signing, a wholesale buyer planning to transfer the purchase contract for a fee must tell the owner in writing. Before transferring a contract, a wholesale seller without legal title must tell the next buyer in writing that the seller holds only contract-based rights and may be unable to transfer title. Owners can cancel without penalty anytime before closing if the wholesale buyer skips the required notice and transfers the contract, including when dealing with that buyer’s assignee or successor. A buyer receiving an assigned contract can also cancel without penalty anytime before closing if the wholesale seller skips the required notice, and must receive back any deposit paid for the assignment.