Home Real Estate Here are the new laws for real estate investors and wholesalers

Here are the new laws for real estate investors and wholesalers

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If you are a real estate investor or real estate wholesaler, there are new laws that will affect you. Last week, Governor Ducey signed HB 2747 into law and this new law places disclosure requirements on buyers that enter into residential real estate contracts and then assign the contracts to someone else. In short, HB 2747 applies to real estate wholesalers.


READ ALSO: Real Estate Pulse: How to avoid misrepresentation in real estate


Under a typical wholesaling transaction, the real estate wholesaler contracts with a home seller and, thereafter, shops that home around to potential buyers. The wholesaler then assigns the existing real estate contract to one of the buyers. Under this scenario, the wholesaler makes money on the assignment of the contract and never intends to own the home.

Pursuant to the new law, a “Wholesale Buyer” must “disclose in writing to the seller that the buyer is a wholesale buyer.” Similarly, a “Wholesale…

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