New York situation guide · Updated November 2026

Wholesaling Fire-Damaged Houses in New York

Wholesaling fire-damaged houses in New York means putting a burned home under contract at a discount and assigning that contract to a rehab buyer. In New York City the work is mostly in outer-borough one- to four-family houses, where owners are often tired of insurance fights and city paperwork.

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The short answer

Can you wholesale a fire-damaged house in New York City?

Generally yes. In New York City, a person holding a signed purchase contract can usually assign it to a rehab buyer, and fire damage does not change that. Brokerage rules, attorney-led closings and open city violations still shape how you market the house and to whom you sell. Ask a New York attorney to review your contract first.

As far as the research for this guide could tell, New York has not enacted a wholesaler-specific law, and bills sitting in committee are not law. Selling your own contract is generally treated as lawful. Advertising a burned house you do not control is where brokerage questions begin. Our legal overview and license guide cover the line; confirm current text with counsel.

Fire adds its own wrinkles. The owner may still be fighting an insurance claim, a mortgage lender may hold the claim check, and the city may have flagged the building. Price the unknowns into your offer with the ARV calculator and the MAO calculator, and get the repair scope from a contractor who has walked the burn.

Fire-Damaged Houses in New York at a glance

Closings	Attorney-led, deposit held in escrow by the seller attorney
Distressed owners	Two months behind or in foreclosure: see RPL 265-a
Disclosure	Property Condition Disclosure Act, RPL Article 14
Transfer tax	Tax Law 1402, generally paid by the seller
Tax liens	NYC sells tax liens, not houses
Local checks	Building and housing violations can follow the property

The opportunity

Why burned houses can work in New York City

Queens, Brooklyn, the Bronx and Staten Island hold thousands of older frame and brick houses. A kitchen or basement fire can leave an owner with a gutted floor, a tenant who left, and no plan. Many are not ready for a long rebuild, and a cash buyer who skips the bank appraisal is a relief. Find the owner, listen first, and offer a fair number.

Insurance fatigue

Owners who have waited months for adjusters often want a clean exit.

Rehab buyers

Contractors and small investors want gut jobs priced below finished comps.

Lot value

Even a total loss may keep value in the land and the zoning.

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Lead sources

Where to find fire-damaged houses in New York City

Drive the blocks. Look for boarded windows and scorched siding while driving for dollars in Jamaica, Soundview and Bay Ridge.
City open data. NYC Open Data and ACRIS can show violations and recent deeds, which helps you reach the owner.
Neighbors. Block associations, supers and corner shops know who left after the fire.
Skip tracing. Once you have the owner name, use skip tracing to find a phone number or mailing address.
Direct mail. Short, kind letters work better than hype; see our direct mail guide.

Your exit

Who buys fire-damaged houses in New York City

Your buyers are rehab contractors, small landlords and investors who already have crews. They want a clear scope, photos, and a contract that gives them time for inspections. They will usually ask for proof that the owner has authority to sell, and they will want to see the fire report if one exists.

Our repair cost guide and comps guide help you build the numbers, and our cash buyer guide shows how to line up buyers first.

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Step by step

How to start wholesaling fire-damaged houses in New York

Reach the owner. Confirm who owns it and whether any mortgage or tax debt exists.
Walk the house. Ask for safe access or use photos.
Check the paper trail. Run a title search and look at open violations; see doing a title search.
Run the math. Take ARV, subtract repairs, your fee and the buyer profit.
Sign the contract. Use a New York contract reviewed by your attorney, with an assignment clause.
Find the buyer. Send photos and scope to rehab buyers.
Close with counsel. Have attorneys on both sides and consider double closing if the buyer wants a quiet price.

Your checklist for wholesaling Fire-Damaged Houses in New York

Get the fire department or insurer report if the owner has one.
Ask if a mortgage lender is holding any claim money.
Check for open building and housing violations before pricing.
Confirm the owner has full authority to sign.
Have a New York attorney review the contract and assignment language.

A New York example: a Jamaica, Queens two-family after a kitchen fire

Repaired value	$720,000
Estimated repairs	$230,000
Contract price	$395,000
Assignment fee	$18,000
Buyer all-in cost	$643,000
Close time	About 7 weeks

An owner in Jamaica, Queens lost the upstairs kitchen and bedrooms to a fire. His insurer had paid part of the claim, and he was tired of contractor bids. You met him on a Saturday and walked the house with a contractor.

Repaired comps for two-families nearby ran near $720,000. The contractor priced the rebuild at about $230,000. After the buyer’s margin, you offered $395,000 and signed a contract with an assignment clause and a 30-day inspection window.

A rehab investor paid you an $18,000 assignment fee and closed with attorneys on both sides about seven weeks later. The owner moved in with family upstate, cash in hand.

New York rules to know

Distress rules and taxes in New York

Owners two months behind, or already in foreclosure, get extra protection. Under Real Property Law 265-a, buying a one- to four-family home from such an owner calls for a written contract with a cancellation notice, and the owner can cancel through the fourteenth business day. A material violation can make the sale voidable for two years, and the attorney general can seek up to $25,000 per violation. Check current text.

Sellers hand buyers a Property Condition Disclosure Act statement under RPL Article 14, and RPL 465 makes a seller liable only for willful failure. For a burned house, say plainly what the fire destroyed. The seller generally pays state transfer tax under Tax Law 1402, and New York City adds taxes of its own, so ask your attorney for current rates. Our transfer tax guide explains the basics.

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Get a second set of eyes

Burned houses are easy to misprice. Our mentorship students send us photos, scopes and contracts, and we help them test the numbers before they sign.

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FAQ

Fire-Damaged Houses in New York: common questions

Is wholesaling fire-damaged houses in New York legal?

Usually, when you assign your own contract. New York has no wholesaler statute that the research found, though unlicensed brokerage rules may reach someone who markets a house they do not control. Check current rules and ask a New York attorney before you advertise or sign anything.

Do I have to tell buyers about the fire?

Yes, as a matter of good practice and fair dealing. Sellers generally use the Property Condition Disclosure Act statement, and RPL 465 ties liability to willful failure. Give your buyer the fire date, repair history and open violations in writing so no one is surprised at closing.

Who pays the transfer tax on a New York sale?

State transfer tax under Tax Law 1402 is generally the seller’s cost, and New York City charges more on top. Rates and thresholds change, so confirm figures with your closing attorney before you set your fee, especially if you plan a double closing.

What if the burned house belongs to someone behind on payments?

Treat that owner as protected. RPL 265-a can apply to one- to four-family homes in default or foreclosure, and it brings a cancellation period and penalties. Get a New York attorney to review your contract before the owner signs. Do not rush.

Do I need a New York attorney?

In practice, yes. Buyers and sellers in New York hire attorneys for closings, and the seller’s attorney typically escrows the deposit. Bring yours in before you sign, and ask how they treat assignment clauses in a house with insurance claims. It saves time.