A wholesaler is a buyer who signs a purchase contract on a property with no intention of closing on it themselves, planning instead to assign the contract to another buyer, typically an investor, for a fee. Wholesalers do not need a real estate license to do this, but the practice has drawn new disclosure requirements in several states, including Tennessee.
Why it matters
Knowing you are dealing with a wholesaler tells you the person signing your contract likely will not be the one who actually closes on your house.
In Tennessee: Tenn. Code Ann. §§ 66-4-401 to 403. This can work differently in another state.
General information, not legal or tax advice.