State of Kansas Sues for Deceptive Home Sale Practices and Unlicensed Activity 

The State of Kansas, through Attorney General Kris Kobach, filed a lawsuit against House Max, Inc., CEO Jason Jones, and purchasing manager Herbert Brown, Jr., alleging a scheme targeting vulnerable Kansas homeowners. 

The State alleges the defendants acted as unlicensed real estate brokers and falsely held out as licensed agents despite lacking the required Kansas licensure. Allegedly, House Max never intends to buy the homes and uses option contracts to lock homeowners into one-sided agreements, misrepresents repair deductions and closing costs, hides fees, and files “Affidavits of Equitable Interest” that function as false liens to cloud title. The petition claims that House Max profits by assigning these option contracts to third-party buyers for substantial undisclosed “assignment fees,” which function as illegal commissions often exceeding traditional broker rates.  

The petition asserts multiple violations of the Kansas Consumer Protection Act, including deceptive acts, omissions, unconscionable practices, and exploitation of protected consumers. The lawsuit seeks a permanent injunction to halt the practices and a ban on the defendants operating in Kansas, along with civil penalties and full restitution for affected consumers. Read the full press release here. 

Licensure and Wholesaling 

Is a license required for companies who buy and resell houses? It depends. The Commission licenses individuals, not companies, and the specific activities of the company and those individuals must be considered. In a “wholesale” real estate transaction the individual or entity attempts to purchase property from the current owner at a price below market value and then market their contract interest or assignment interest to other potential buyers. The intent is often to resell the property before taking full ownership through a deed transfer, profiting from that exchange.  

Wholesale transactions are not specifically defined under the License Act. A real estate license is required when an individual or company: 

• Markets someone else’s property for sale without owning the property
• Sells a contract interest or otherwise deals in options
• Receives compensation related to buying, selling, exchanging, or leasing real estate (for non-residential properties) 

Marketing or selling property that one owns does not require a license. 

The following statutes apply: 

• K.S.A. 58 3035(f): Definition of a broker
• K.S.A. 58 3036: When a license is required
• K.S.A. 58 3037: Licensure exemptions 

Questions may be directed to KRECCompliance@ks.gov. Staff can provide direction to the appropriate statute or regulation as it pertains to questions. Staff cannot provide legal interpretations or advise on best practices. Consult an attorney for legal guidance. Information on license requirements is available here.  

New Resource! Personal Interest Disclosure Form 

At the April 6, 2026, meeting, the Commission approved a Personal Interest Disclosure Form that licensees may use to disclose both their interest in a real estate transaction as defined in K.S.A. 58-3035(i), K.S.A. 58-3062 and K.A.R. 86-3-19. Use of this form is considered best practice and is not required. This form is available on the KREC website. 

The Commission recognized the need to offer guidance on how licensees should disclose any interest they have in a property to inform consumers about risks that may arise. These risks include possible conflicts of interest or an imbalance in negotiations due to experience or knowledge. Because real estate licensees are generally more familiar with property values, development potential, and market conditions than the average consumer, it is especially important that any personal interest be disclosed.  

May 1, 2026, License Expiration Date Reminder 

The next license expiration date is May 1, 2026. Only IF this is your license expiration date, complete your renewal now to avoid a late fee. We recommend logging in now to ensure access to the new Public Portal system. 

1. View these video tutorials to help navigate the online renewal process.
2. Confirm your expiration date by conducting a search on the License Search page or checking your wallet card.
3. Complete your Continuing Education (CE).
4. Submit your renewal application by logging in to your Public Portal account. 

All licensees receive a courtesy renewal reminder email 45 days prior to license expiration. If you did not get an email, your email address is likely invalid with KREC. Instructions to complete all online processes are available here. Most renewal questions can be answered by reviewing the FAQ section of the KREC website.