Denver's 'We Buy Houses' licensing proposal is back, with a December committee date

A proposal to license the investors behind "We Buy Houses" offers returned to the Denver Council's Budget and Policy Committee on Monday, Nov. 9, nine months after its first hearing there. The updated slides set a date at the Finance and Business Committee for Dec. 8, with a full Council vote possible in December or January. The item is 26-1721.

The proposal is Council member Shontel Lewis's; she presented it, Denver7 reported. "It's essentially a proposal to be able to protect folks in our city who are homeowners from being able to be preyed on," Lewis told the station. Denverite covered the first presentation in February.

Why it matters: wholesalers sign a contract to buy a house, often with a cash offer, then sell the contract or the house for a profit without improving it. Colorado doesn't require them to hold a real estate license when they act as the buyer, the slides say. The slides argue they target neighborhoods with low incomes and low mortgage lending, and use high-pressure tactics to buy homes for far less than they're worth.

What the draft ordinance would do

From the draft:

• License required. Anyone in the business of buying or soliciting homes to resell or assign the contract for profit would need a city license. Licensed real estate brokers and people who substantially improve a home before selling are exempt.
• Do-not-solicit list. The licensing department would keep a list homeowners could join. Contacting someone on it would be a violation.
• Disclosure. A wholesaler would have to tell an owner at least three days before making an offer that it intends to resell or assign the contract, and give information on getting an appraisal.
• Banned conduct. Substantial misrepresentations, false promises, and repeated contact meant to harass, threaten or coerce an owner.
• Reporting. An annual report to the Council by July 1 on licenses and transactions.

Penalties would run through the city's usual licensing process, including fines and license suspension.

What changed since February

The cost. The slides estimate $125,000 one time for technology and two licensing staff, an inspector and a licensing technician.

The data. Assessor's records from 2021 to 2025 show about 39 entities responsible for most wholesale-style transactions, the slides say, with maps to come in an upcoming displacement study.

Who's on board. The Denver Metro Association of Realtors is "supportive," with a formal letter pending, the slides say. Meetings with wholesaler groups are listed as "upcoming."

What our records add

First hearing: the February presentation to the same committee, on Feb. 9, laid out the same three-part bill and cited Philadelphia, Baltimore and Atlanta as models.

Other cities have moved. Seattle adopted a do-not-solicit law in August that takes effect June 1, 2027, according to the city of Seattle. Philadelphia's Council passed its own wholesaler bill, WHYY reported.

The draft still says 2025. The draft ordinance attached to Monday's item carries "Series of 2025" dates, which would be updated before introduction.

What's next

Dec. 8: Finance and Business Committee.

December 2026 to January 2027: Full Council.