Texas Wholesaling Rules in 2026 and What They Mean for Dallas Homeowners Selling for Cash

Picture the closing table. You've agreed to sell your rental in Mesquite to a friendly investor who called you last month. The papers slide across, and the buyer's name at the top is an LLC you've never heard of. He tells you his partner is taking over. Is that legal? In Texas, it often is, and that catches a lot of sellers off guard.

That's wholesaling. This guide covers the Texas real estate wholesaling law disclosure 2026 sellers still live under, who the law protects, and what it leaves for you to check yourself. Everything here comes from the statute, TREC's own published findings, and the companies' own websites.

Southern Hills Home Buyers Buys as an Investor

One local company you'll see in Dallas searches is Southern Hills Home Buyers. It's a family-owned investor home buyer based in Plano, founded by Brandon Beatty and in business since 2017. The BBB lists an A+ rating for it, and it's been accredited since March 23, 2026.

The company's FAQ is direct: "We're not agents, and we don't list houses." It describes its model plainly too. It buys houses as is, repairs them and resells them, and that's how it earns a profit. That's also why it says its offers come in below retail. You pay no fees or commissions, and a typical close runs 7 to 21 days or on your schedule.

The Law on the Books, SB 2212

Texas passed Senate Bill 2212 in 2017, and it took effect on September 1, 2017. It added two new sections to state law, and both still matter to you today. One is Section 1101.0045 of the Occupations Code. The other is Section 5.086 of the Property Code, titled "Equitable Interest Disclosure."

Under these rules, a person can sell an option or assign "an interest in a contract to purchase real property" without a real estate license. There's a condition, though. They can't use that interest to act as a broker, and they must disclose what they're selling. A wholesaler who skips the disclosure "may be deemed to be engaging in real estate brokerage," according to the bill analysis.

A Texas attorney's 2017 summary of the law adds a sharper point. Advertising a property for sale "clearly requires a real estate license issued by the Texas Real Estate Commission."

The Gap Most Sellers Miss

Section 5.086 tells the wholesaler who to inform. Before signing with a potential buyer, the wholesaler must say it's selling only an option or assigning a contract interest, and that it doesn't hold legal title. That's the next buyer down the line.

It isn't you, the owner who still lives in the house or holds the keys. No Texas statute found in our research requires a wholesaler to make the same disclosure to the homeowner who signed first. The law protects the investor who buys the contract. You protect yourself by asking.

Is There a New Rule for 2026?

Not that we could find. Our research turned up no newer TREC rule on wholesaling from 2024 through 2026, so SB 2212 is still the main law that applies when you sell this year.

You may see "SB 1143" named online as a Texas wholesaling law. That's wrong. The 2023 bill with that number dealt with a data center sales tax and died in committee, and the 2025 bill with that number covered workforce development. Neither one touches wholesaling. If an article or a buyer cites SB 1143, take the rest of what they say with care.

What TREC Heard From Texas Sellers

TREC surveyed the public about wholesaling in early 2022. More than 4,500 people answered. Dallas-Fort Worth-Arlington ranked first among the metro areas where wholesale sales took place, so this topic hits DFW sellers harder than most.

Sellers with bad experiences told TREC "they were misled about the nature of the transaction." Title staff said "Sellers are often unaware" they're selling to someone other than the person they signed with. Some contracts fell apart because no end buyer ever showed up.

How Myers Home Buyers Fits In

Myers Home Buyers is a good example of a company that's open about how it works. It's a licensed Texas real estate brokerage, TREC License #9005311, and its founder and CEO, Josh DeShong, is the broker of record. The company calls itself "a new style of brokerage: our agents are investors first."

That has real upsides. You're dealing with licensed agents, and you can look up a license on the TREC site. Myers says it'll show you "five lines of arithmetic" behind its offer, and it'll tell you if listing your house would net you more. Its FAQ says there's "No fee to request one, no fee to accept one, no repairs, no showings."

Know the structure before you sign, though. Myers says "Every Myers offer comes from a local real estate investor who is also a licensed Texas agent." Its FAQ also says, "One platform, every exit: assign it, flip it, or list it." So your contract could end up with a different investor than the one you first met. Ask your agent at Myers which exit applies to your house, and get the answer in writing.

Questions to Ask Any Cash Buyer

Whose name will be on the deed when this closes?
Does the contract say "and/or assigns" anywhere?
If you assign it, will you tell me who the new buyer is?
Which Texas title company holds the earnest money?
Can I see proof that you have the funds to close?

A direct buyer can answer every one of these on the first call. A wholesaler can answer them too, and an honest one will. Watch for who tells you before you have to ask twice.

A Seller's Quick Read on Southern Hills

Southern Hills lists a wide range of property it buys. It takes tenant-occupied rentals "without asking you to clear the tenancy first," and in one DeSoto sale it "took over the lease exactly as written." It buys mobile homes with or without land, plus duplexes, land and commercial property. When several heirs share a house, it can often make one offer to the whole group. Like any buyer, ask it to confirm the buyer of record in writing.

Ron G. described working with the team on a Google review. He wrote that his contact "is also extremely professional in providing real estate comparisons and sharing his experience in moving properties."

What to Take Away for 2026

The Texas real estate wholesaling law disclosure 2026 sellers face is the same one passed in 2017. It protects the next buyer, not you. So ask who's really buying, read the contract for assignment language, and keep your earnest money at a title company. If you want a family-owned buyer that says plainly how it works, Southern Hills Home Buyers is a solid place to begin.