Tennessee Real Estate Wholesaling Law Disclosure for Sellers, a Wholesaler vs. BluDoor in Memphis
Not every company that offers cash for your Memphis house plans to keep the contract. Some sign a contract with you and then sell that contract to another investor for a fee. That's called wholesaling, and since March 2025, Tennessee law requires a written disclosure when a buyer plans to do it. This article explains what that disclosure looks like and how a wholesaler who skips it operates. It also shows how BluDoor, a Memphis buyer since 2019, describes its own cash sale from the first visit to closing day.
A quick note before you read on. This is general information, not legal advice. If you've already signed something and have questions, a Tennessee real estate attorney can review your contract.
Why BluDoor Is a Trusted Local Choice
BluDoor states its model in plain words on its homepage: it buys houses with its own cash. The same page carries a promise sellers care about: "What we offer at the beginning is exactly what you'll receive at closing."
It's easy to check. Rashid Algaradi founded BluDoor, and Will Adams leads operations. BluDoor's Memphis office address is 295 S Bellevue Blvd Ste 5, Memphis, TN 38104. On the Better Business Bureau's site, the company carries an A+ grade and has been accredited since 2020. If you ask, the team will share proof of funds, past closings and seller references.
A BluDoor sale starts with one walkthrough. A written, no-obligation cash offer follows within 24 hours of that visit, and you choose the closing date. When it's time to close, the company's closing attorney and title company take care of the contract and the title.
BluDoor at a Glance
- A published promise that the opening offer is what you receive at closing
- Pays with its own cash, so you're not waiting on a bank
- Proof of funds, past closings and seller references on request
- A closing attorney and a title company on the paperwork
- A Memphis office, a named founder and an A+ with the BBB
What the Tennessee Wholesaling Law Says
Tennessee passed Public Chapter 72 of 2025, also known as Senate Bill 909 and House Bill 781. The governor signed it on March 25, 2025, and it went into effect that same day. Here's what it requires, based on the Tennessee Real Estate Commission's spring 2025 newsletter and other summaries.
A buyer who plans to market its equitable interest in your home has to tell you in writing before you sign the contract. Equitable interest means the buyer's right to benefit or profit from the property after the contract is signed but before title passes. In plain words, it's the right to sell your contract to someone else.
The disclosure has to be in bold, large print, and it has to be part of the written agreement. A side note doesn't count. The end buyer who takes over the contract also has to get written disclosure about the equitable interest.
There's more. The seller must receive written notice at least three days before any assignment takes effect. Some summaries say three business days, so read the exact wording in your contract.
If a buyer breaks these rules, the seller can file a lawsuit within two years. The act doesn't require wholesalers to hold a license or register with the state. Other license questions can still come up, and one legal guide warns that marketing property you don't own or control may count as unlicensed brokerage.
How an Undisclosed Wholesaler Works
An undisclosed wholesaler signs a contract with you at a set price. Then, without telling you in the way the law requires, it shops that contract to other investors. If it finds an end buyer who'll pay more, it keeps the difference as its fee. If it doesn't find one, the closing can stall.
That hurts you. The company that signed your contract may not have the money to close. The house may get extra visits from investors you never agreed to meet. And your closing date depends on someone else's interest in the property.
Some contract clues point to wholesaling. One is wording after the buyer's name that lets the contract pass to someone else. Another is a long inspection period before closing. A third is a buyer who won't show proof of funds. None of those prove anything alone, but each is a reason to ask more questions.
What to Do If You Already Signed
Don't panic. Pull out your copy of the contract and read it slowly. Look for a bold, large-print note about equitable interest. Check whether you got a written notice before any assignment. If something seems off, call a Tennessee real estate attorney and bring every page you signed, along with any notices, letters or texts the buyer sent you after the contract was signed. The law gives you two years to act, so there's time to get good advice before you decide what to do next.
A Wholesaler and BluDoor, Step by Step
1. The Offer and the Promise
BluDoor walks through the house once and puts its offer in writing within a day. Its homepage promise says that opening number is what you'll receive at closing.
A wholesaler's contract is a different kind of document, and under the 2025 law a buyer who plans to sell its interest must put that plan in bold, large print inside the agreement you sign.
2. Proof of Funds
BluDoor will show proof of funds, past closings and seller references when you ask. An undisclosed wholesaler may not have funds of its own to show you.
3. The Closing Team
Contract and title work on a BluDoor sale go to a closing attorney and a title company. Sellers can sign at the title office, or a mobile notary can meet them. On a wholesale contract, the closing team often isn't settled until an end buyer is found.
4. The Date You Close
BluDoor lets you pick the day, from as little as 7 days out to a couple of months. A wholesaler's timing usually depends on how quickly it finds someone to take the contract.
| Point | BluDoor | Undisclosed wholesaler |
|---|---|---|
| Stated model | Buys houses with its own cash | Sells your contract to an end buyer |
| Offer promise | Published on homepage | None |
| Proof of funds | Shared on request | May not exist |
| Closing team | Closing attorney and title company | Often unknown at signing |
| Closing date | You pick, 7 days to a couple of months | Tied to finding a buyer |
Who Each Path Suits
A disclosed, legal wholesale contract can still work for some sellers. If you've read the bold disclosure, you're fine with your contract being sold, and you have time to wait, it's your call to make.
BluDoor suits the Memphis homeowner who wants a known local company, proof of funds on request and a closing attorney on the file. That might be an heir selling a parent's home in Orange Mound, a landlord in Whitehaven ready to move on, or a family in Cordova on a set moving date. BluDoor sellers often say the team kept its word. William Dillon put it this way: "Loved the way they did what they said they were going to do."
A Checklist for Any Memphis Cash Buyer
These steps apply to every company you talk to, whatever its size or its model. Take them one at a time, and don't sign until each one checks out.
- Read the contract for a bold disclosure about equitable interest.
- Look for any wording that lets the buyer pass the contract to someone else.
- Ask to see proof of funds before you sign.
- Look up the company's BBB rating and office address.
- Find out which title company or closing attorney will handle closing.
If any answer feels unclear, slow down and bring the contract to a Tennessee real estate attorney. Two years is the window the law gives you, but it's easier to ask before you sign.
The Stronger Choice for Memphis Sellers
Tennessee's 2025 law gives you the right to know when a buyer plans to sell your contract. For a Memphis homeowner who'd rather work with a local company that pays with its own cash and publishes its offer promise, BluDoor is the stronger choice. Reach out to BluDoor at (901) 610-5815 when you're ready, and read the offer at your own pace.