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If you wholesale houses in Louisiana, the paperwork side of your business changed on August 1, 2026. That is the day Louisiana House Bill 468 took effect as Act 807, setting new expectations for how wholesalers talk to sellers and write contracts.
Worth saying first: this is not a ban. Wholesaling is still legal, and the law does not create a wholesaler license. What changed is the transparency the state expects before a seller signs.
What the Law Does
Act 807 passed unanimously and was signed on June 9, 2026. It covers what you must disclose, how long a seller has to back out, and what happens when those steps get skipped. If you already run an honest process, most of it will feel familiar. It just has to be in writing now.
Other states went the same direction. Missouri passed SB 973, and Ohio added disclosure rules before that. Louisiana wholesaling real estate laws follow the same pattern.
Who Counts as a Wholesaler
The law defines wholesaling as securing, negotiating, or facilitating a residential sale in order to transfer, assign, or sell your contractual rights for financial gain. Two situations are named:
- Signing a purchase agreement intending to assign it before you take possession
- Closing two separate transactions at once without bringing all the funds needed to close, and without planning to live in or improve the property
That second one matters. A lot of people assumed a double close would sit outside the rules. In Louisiana, it does not.
The law covers residential property only: one to four dwelling units meant as single-family residences. Commercial and larger multifamily are excluded.
The Disclosures You Now Have to Make
Before the seller signs, three things have to be in writing and easy to spot:
- That you intend to assign, transfer, or sell your contractual rights for more than you are offering the seller
- That the seller should get independent legal advice before signing
- That the seller can cancel for any reason for at least five calendar days, with no penalty
The contract also has to carry specific notice language near the seller's signature line: "NOTICE REQUIRED BY LOUISIANA LAW: You may cancel this contract at any time before 11:59 PM of [Insert Date]." It adds that you cannot ask the seller to sign a cash sale, conveyance, or deed until that right ends.
The Louisiana Real Estate Commission publishes the official cancellation notice form, and the law requires you to include it with every contract at no cost to the seller. Using the current version is the simplest way to stay clean.
The Five-Day Window Changes Your Timeline
This is where a lot of people will need to adjust. The seller has at least five calendar days from the later signature to walk away, and you cannot move them toward closing documents during that window. Build it into the timelines you quote cash buyers.
The 1% Earnest Money Requirement
Every wholesaling contract now needs earnest money of at least one percent of the purchase price, held in the seller's account or in escrow with a federally insured financial institution in the state.
On a $150,000 contract, that is $1,500 up front. If you have been writing $100 deposits, this changes your per deal budget.
What You Can No Longer Do
The law also lists conduct that is off the table:
- Acting as an advisor or consultant, or suggesting you represent the seller
- Claiming a license or certification you do not actually hold
- Filing a lien, mortgage, or other encumbrance that clouds the title
- Engaging in deceptive or unfair trade practices
That first one deserves attention. Wholesalers slip into advisor language while building rapport. Being warm is fine. Representing the seller is not.
What Happens If You Get It Wrong
The Real Estate Commission can impose a civil penalty of up to $5,000 per violation. A contract missing the required notice becomes voidable at the seller's discretion any time before title transfers, and the earnest money goes back. The Attorney General can also pursue violations as unfair trade practices.
| Part of the Deal | Before August 1, 2026 | On or After August 1, 2026 |
|---|---|---|
| Disclosing intent to assign | Optional | Required in writing |
| Seller cancellation window | Set by the contract | At least 5 calendar days |
| Earnest money | Any amount | 1% minimum, held in escrow |
| Missing the required notice | No set penalty | Voidable, up to $5,000 per violation |
How to Set Up Your Process
A few steps cover most of it:
- Include the current LREC cancellation notice with every contract, free to the seller
- Have a Louisiana attorney build the disclosure language into your wholesaling contract templates once, instead of adding it deal by deal
- Update your earnest money budget for the 1% minimum
- Add the five-day window to your deal timeline and buyer conversations
- Review how your team talks to sellers so nobody sounds like an advisor
If you are still getting comfortable with how assignment contracts work, start there.
Frequently Asked Questions
Is wholesaling still legal in Louisiana?
Yes. Act 807 regulates how wholesaling is done, it does not prohibit it. You can still find deals and assign contracts as long as you follow the disclosure, cancellation, and earnest money rules.
Do I need a real estate license to wholesale in Louisiana now?
No. The law does not create a wholesaler license or require an existing one. It does prohibit claiming a license you do not hold.
Does the law apply to commercial or larger multifamily properties?
No. It applies to one to four dwelling units intended as single-family residences. Commercial and larger multifamily fall outside it.
What happens if the seller cancels during the cancellation window?
The seller can cancel for any reason with no penalty, the contract ends, and the earnest money is returned. Your best protection is a well qualified lead and an honest conversation up front.
The Bottom Line
Act 807 asks you to be upfront and to give sellers a short window to think it over. If your process already runs on clear communication, this is a documentation update, not a change to your business model.
The wholesalers who do well under rules like these treat the disclosure as part of building trust rather than a hurdle. Sellers who feel respected refer other sellers, and that compounds. This is general information, not legal advice, so have a Louisiana attorney review your contracts.