Question 1

Do I need a real estate license to wholesale a deal in Merced County?

Accepted Answer

Not automatically, but the license line is close, so read it before you market anything. California has no statute written for wholesaling. The rule that governs is the broker definition in Business and Professions Code section 10131: acting for another or others, for compensation, in selling real estate or negotiating loans secured by it. The industry position, that assigning your own interest in a purchase contract is acting for yourself while marketing the property crosses into brokerage, appears only in practitioner sources, and we found no Department of Real Estate guidance document. A search of the City of Merced code found no wholesaler ordinance, which means none located, not none existing. Ask a California real estate attorney about your contract.

Question 2

What does a two-leg close cost in Merced County transfer tax?

Accepted Answer

Each deed pays the county's flat $1.10 per $1,000, with no city add-on found. The County Recorder states the tax as $0.55 per $500 of real property value, excluding existing liens or encumbrances. On a $400,000 deed with no assumed lien that is $440 per leg, or $880 for an A-to-B and a B-to-C deed, as an illustration only. Both deeds also need a Preliminary Change of Ownership Report, or an extra recording fee applies. The City of Merced is a charter city and could set its own rate, so confirm the total with your title company.

Question 3

Does the brief A-to-B ownership create a tax bill?

Accepted Answer

It can. Both legs of a double close are reassessment events under Proposition 13. The A-to-B owner may receive a supplemental assessment for its brief period of ownership, and the county will not split that bill between the two owners, so it reaches whoever is the owner of record when the bill issues. The supplemental bill goes to the owner and not to a mortgage servicer. Ask your title officer how the proration is handled on your closing statement, and talk to your CPA about the tax position.

Question 4

Who runs escrow in Merced County, and will title insure a same-day back-to-back close?

Accepted Answer

We could not source either answer, so ask before you assign the contract. California is an escrow state with no attorney required at closing, and licensed escrow and title companies handle it. Who runs escrow by local custom in Merced County, whether local title officers will insure a same-day back-to-back close, and the local norm for dry versus wet funding and assignment fees are all unsourced here. Put those questions to the title officer on your first deal, and tell us what the escrow instructions require so the A-to-B funding matches them.

Question 5

Does the 18-month flip disclosure reach a wholesaler who takes title?

Accepted Answer

It can, if you take title and accept the end buyer's offer inside 18 months. Civil Code section 1102.6h applies to the seller of a 1-4 unit property who accepts an offer within 18 months of acquiring it, and requires disclosure of contractor-performed alterations and repairs, with contractor names and contact details. On a pure wholesale with no work done there may be nothing to list. How the rule applies to a same-day resale is a question for your attorney, which is why the point belongs in your deal checklist.

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