REFERENCE TITLE: wholesale real estate buyers; disclosure

State of Arizona

House of Representatives

Fifty-fifth Legislature

Second Regular Session

2022

HB 2747

Introduced by

Representatives Espinoza: Toma

An Act

amending title 44, Arizona Revised Statutes, by adding chapter 15.1; relating to sales of property.

(TEXT OF BILL BEGINS ON NEXT PAGE)

Be it enacted by the Legislature of the State of Arizona:

Section 1. Title 44, Arizona Revised Statutes, is amended by adding chapter 15.1, to read:

CHAPTER 15.1

RESIDENTIAL PROPERTY

ARTICLE 1. GENERAL PROVISIONS

START_STATUTE44-5101. Wholesale buyers; disclosure; unlawful practice; definitions

A. Before the parties enter into any binding agreement, a wholesale buyer of residential real property shall DISCLOSE in writing to the seller that the buyer is a wholesale buyer.

B. If a wholesale buyer violates this SECTION, the seller may cancel the contract for sale without penalty and may retain any earnest money paid by the wholesale buyer.

C. For the purposes of this section:

1. "Residential real PROPERTY" MEANS real property with fewer than five dwelling units.

2. "Wholesale buyer" means a person or entity that enters into a PURCHASE contract for residential real property and assigns that same contract to another person or entity for a profit. END_STATUTE