AB 1850: Real estate: wholesaling.

<p>The bill amends California's real estate laws by expanding the definition of a real estate broker to include individuals who negotiate sales contracts for compensation or in expectation of it. It prohibits wholesaling activities unless conducted by a licensed real estate professional, defining wholesaling as entering into or offering to enter into a contract or option to purchase property on behalf of another and selling, assigning, or marketing that contract or option for profit.</p> <p>The bill requires wholesalers to disclose in writing to property owners that they will not take title to the property. It also mandates clear written disclosure in advertisements or offers that the person does not hold legal title to the property. Failure to provide these disclosures is considered substantial misrepresentation and subject to disciplinary action.</p>