Pennsylvania’s real estate market is entering a new era of transparency and regulation with the implementation of Act 52 of 2024, which took effect in January 2025. Whether you’re an investor acquiring properties, a wholesaler assigning contracts, or someone considering selling, Act 52 will impact how you do business in the Commonwealth. Understanding these changes is essential for protecting your investments and ensuring your transactions remain compliant and efficient.Act 52 specifically targets residential real estate wholesaling, a practice where a party contracts to purchase a property and then assigns that contract to a third-party buyer for a fee, often without ever taking title to the property. Under the new law, anyone engaging in wholesaling must register with the state, obtain a real estate license, and follow strict disclosure requirements. This means that wholesalers are now held to the same standards as brokers and must clearly inform all parties when they intend to assign their interest in a property rather than purchase it outright.For investors, these changes bring both new protections and new responsibilities. Sellers must receive prominent written notice that they are part of a wholesale transaction, be advised of their right to consult with legal counsel or a licensed appraiser and be given the right to cancel the contract within 30 days or before the property is conveyed, whichever comes first. Payments must be refunded within ten business days if a contract is canceled, and wholesalers cannot require sellers to waive these rights. Agreements that do not meet these requirements can be canceled at any time before closing.Why does this matter for real estate investors? For one, Act 52 aims to curb predatory practices and ensure all parties operate on a level playing field. Investors now have greater assurance that transactions are transparent and that all parties are informed. At the same time, those who wholesale properties must be diligent about compliance, as failure to follow the law can result in voided contracts, fines, or even legal action.As Act 52 takes effect, it’s crucial for everyone in the wholesaling investment community to understand these new requirements and adjust their practices accordingly. At Gross McGinley, we’re committed to helping real estate investors navigate this evolving landscape with clarity and confidence. If you have questions about Act 52 or how it may affect your investment strategy, our team is ready to provide practical, solution-oriented guidance to keep your deals moving forward. That’s our promise to Pennsylvania’s real estate community as these important changes take effect.