Your rights when a buyer wants to assign your contract
In Texas, someone can sign a contract to buy your house and then sell that contract to someone else. That's legal, but only if they follow two rules.
1. They must tell you in writing
Texas Property Code 5.0205 says that before entering into a contract to assign their interest, a person must disclose in writing to the owner that they intend to assign it (an "and/or assigns" clause in your contract may be how they give that notice), and must tell any potential buyer that they're only assigning a contract and don't own the house.
2. They can't act like an unlicensed broker
Occupations Code 1101.0045 (updated by SB 1577, effective Jan. 1, 2024) lets unlicensed people sell an equitable interest in a contract only if they don't engage in real estate brokerage and they disclose the nature of that interest in writing to any seller or potential buyer. If they skip that disclosure, the law treats them as practicing real estate brokerage without a license. Marketing your house itself, rather than their contract, can cross that line. The Texas Real Estate Research Center has a fuller explanation.
A short checklist
- Ask: "Do you intend to assign this contract?" Get the answer in writing.
- Look for "and/or assigns" after the buyer's name.
- Earnest money should go to a title company, and you should know how much.
- Know how many days they have to back out, and what happens to the earnest money if they do.
- If something feels off, a Texas real estate attorney can review the contract for a flat fee, usually far less than the money at stake.
Not sure the price is fair? Run the numbers.
Common questions
Can an unlicensed person wholesale my house in Texas?
Yes, but only within limits. Texas Occupations Code 1101.0045 lets an unlicensed person sell or assign their interest in a purchase contract only if they don't act as a broker and they disclose the nature of that interest in writing to any seller or potential buyer. Property Code 5.0205 separately requires them to tell you, the owner, in writing that they intend to assign.
What does 'and/or assigns' mean in a contract?
It lets the buyer named in the contract transfer the contract to someone else. It's the clause wholesalers rely on.