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Investors who buy a property and then find a new homebuyer before the initial deal is completed are now required to register with the state of Connecticut.

Registration opens July 1, costs $285 and must be renewed before July 31 every year after.

The change was part of new regulations issued by the state Department of Consumer Protection implementing a “real estate wholesaling” law passed by the General Assembly last year.

Real estate wholesaling is when a person agrees to buy a property but finds someone else to buy it before the original deal is completed.

Under the new Connecticut rules, prior to executing a real estate wholesale contract, a real estate wholesaler must provide a written wholesale disclosure report to the prospective seller of residential real property.

“This new registration, added by the legislature in 2025, is intended to increase transparency in the real estate wholesale market,” Connecticut Consumer Protection Commissioner Bryan Cafferelli said in a statement. “Often sellers may not be aware they are working with a wholesaler, which can result in a loss of time or maybe even money for the original seller.”

There are no exceptions to this law, Cafferelli’s office said in a statement. Realtors who participate in the wholesale process must register as well. Violators can be prosecuted for unfair or deceptive trade practices under state law, a Q&A published by Cafferelli’s office said.

A list of wholesalers will be posted on the DCP website. Additionally, a lien or encumbrance can’t be placed on a property under a wholesale contract.