ARIZONA HOUSE OF REPRESENTATIVES

Fifty-fifth Legislature

Second Regular Session

House: COM DPA 10-0-0-0


HB 2747: wholesale real estate buyers; disclosure

Sponsor: Representative Espinoza, LD 19

Caucus & COW

Overview

Requires wholesale buyers to disclose to sellers that they are wholesalers prior to entering into binding real estate sales agreements.

Provisions

1.   ☐ Prop 105 (45 votes)	     ☐ Prop 108 (40 votes)      ☐ Emergency (40 votes)	☐ Fiscal NoteRequires a wholesale buyer, before entering into a binding agreement with a seller, to provide a disclosure in writing to the seller that the buyer is a wholesale buyer. (Sec. 1)

2.   States if a wholesale buyer violates the disclosure requirement, the seller may cancel the contract for sale without penalty and may retain any earnest money paid by the wholesale buyer. (Sec. 1)

3.   Defines residential real property as meaning real property with fewer than five dwelling units. (Sec. 1)

4.   Defines wholesale buyer as meaning 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. (Sec. 1)

Amendments

Committee on Commerce

1.   Adds the seller may cancel the contract for sale at any time prior to the close of escrow without penalty.

2.   Makes a clarifying change.

 

 

 

 

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                        HB 2747

Initials PRB     Page 0 Caucus & COW

 

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