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Connecticut just passed a new law that changes how wholesaling works in the state. If you wholesale real estate in Connecticut, or plan to, here is what Public Act 25-168 requires before July 1, 2026.
What Changed in Connecticut
For years, wholesaling in Connecticut existed in a legal gray area. No specific rules governed the practice, and the line between wholesaling and unlicensed brokerage was never clearly defined.
That changed when Connecticut included wholesaling requirements in its budget bill (HB 7287), signed into law as Public Act 25-168. The new Connecticut wholesaling law takes effect July 1, 2026. Other states like South Carolina and Indiana have passed similar regulations. The trend is clear: states are regulating wholesaling, not banning it.
What the New Law Requires
Here is what Public Act 25-168 requires after July 1, 2026:
- DCP Registration. You must register with the Connecticut Department of Consumer Protection before acting as a wholesaler.
- $285 Biennial Fee. The nonrefundable registration fee covers two years. That works out to about $12 per month.
- 3-Business-Day Cancellation Right. Every wholesale contract must give sellers three business days to cancel without penalty.
- 90-Day Closing Window. Closing cannot be set more than 90 days after signing. Written extensions are allowed. If you are consistent about building a strong buyers list, 90 days is plenty.
- Applies to 1+ Contracts Per Year. The law kicks in once you do more than one wholesale contract per calendar year.
- License Disclosure. If you hold a CT real estate license, you must disclose it to the seller.
- Unfair Trade Practice Violations. Noncompliance is classified as an unfair trade practice under Connecticut law.
Before vs. After July 1, 2026
| Requirement | Before July 1, 2026 | After July 1, 2026 |
|---|---|---|
| State Registration | Not required | Required through DCP ($285 biennial) |
| Seller Cancellation Right | No specific requirement | 3 business days to cancel without penalty |
| Closing Deadline | No limit | 90 days max (written extensions allowed) |
| License Disclosure | Best practice | Legally required |
| Penalties for Noncompliance | General real estate law | Unfair trade practice violation |
How to Prepare
Update your contracts. Include the 3-business-day cancellation clause and set closing dates within 90 days. Have a Connecticut real estate attorney review your template now. Connecticut is an attorney-close state, so you already need one for closings.
Budget for the $285 registration. It is nonrefundable and covers two years.
Tighten your timeline. If your deals take longer than 90 days, use a driving for dollars strategy to find and close deals faster.
Get your deal flow organized. A system to find motivated sellers, track leads, and manage contracts makes compliance easier. DealMachine helps investors find off-market properties, pull owner data, and manage their pipeline from one platform.
The Bottom Line
This law is not a ban. It is a framework. The investors who prepare now will be in the best position when July 1 arrives.
Frequently Asked Questions
Is wholesaling real estate legal in Connecticut?
Yes. Public Act 25-168 does not ban wholesaling. It creates a registration requirement and contract rules effective July 1, 2026. Register with DCP and follow the rules.
Do you need a license to wholesale real estate in Connecticut?
No real estate license is required. You must register with DCP ($285 biennial) if you do more than one wholesale contract per year. No coursework or exam needed.
What is the new Connecticut wholesaling law?
Public Act 25-168 requires DCP registration, a 3-business-day seller cancellation window, a 90-day closing deadline, and classifies violations as unfair trade practices. It takes effect July 1, 2026.
How do I register with DCP as a wholesaler?
Registration opens through the Connecticut Department of Consumer Protection on July 1, 2026. The fee is $285, valid for two years. Check the DCP website for application details as the date approaches.
What happens if you wholesale without registering?
It is classified as an unfair trade practice, which can result in fines, cease-and-desist orders, and sellers may be able to void your contracts. The $285 fee is a small price compared to that risk.