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ARIZONA HOUSE OF REPRESENTATIVESFifty-fifth Legislature Second Regular Session |
House: COM DPA 10-0-0-0 | 3rd Read 59-0-1-0Senate: COM DP 7-0-2-0 | 3rd Read 23-2-5-0 |
HB 2747: wholesale real estate buyers; disclosure
Sponsor: Representative Espinoza, LD 19
Transmitted to the Governor
Overview
Provides disclosure requirements for wholesale buyers and sellers.
Provisions
1. Requires a wholesale buyer of residential real property, before entering into a binding agreement, to provide a disclosure in writing to the seller that the buyer is a wholesale buyer. (Sec. 1)
2. Stipulates if a wholesale buyer violates the disclosure requirement, the seller may cancel the contract for sale at any time prior to the close of escrow without penalty and may retain any earnest money paid by the wholesale buyer. (Sec. 1)
3.
Requires a wholesale seller of
residential real property, before entering into a binding agreement, to provide
a disclosure in writing to the buyer that the seller is a wholesale seller who
holds an equitable interest in the property and that the seller may not be able
to convey title to the property. (Sec. 1)
4. Stipulates if a wholesale seller violates the disclosure requirement, the buyer may cancel the contract for sale at any time prior to the close of escrow without penalty and may retain any earnest money paid by the buyer. (Sec. 1)
5. Defines residential real property as real property with fewer than five dwelling units. (Sec. 1)
6. Defines wholesale buyer as a person or entity that enters into a purchase contract for residential real property as the buyer and assigns that same contract to another person or entity. (Sec. 1)
7. Defines wholesale seller as a person or entity that enters into a purchase contract for residential real property as the seller, that does not hold legal title to that real property and that assigns the same contract to another person or entity. (Sec. 1)
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HB 2747
Initials PRB Page 0 Transmitted
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