A plain-English explanation of what wholesaling is, and how we comply with A.R.S. § 44-5101.
Arizona Revised Statutes § 44-5101 governs wholesale real estate transactions in Arizona and requires certain disclosures to homeowners when a party intends to purchase a property with the intent to assign, sell, or otherwise transfer its interest in the purchase contract to a third party rather than close on the property itself. Arizona Real Estate Wholesaling operates in compliance with these disclosure requirements on every applicable transaction.
Arizona Real Estate Wholesaling enters into purchase agreements directly with homeowners. In many cases, rather than personally closing on and taking ownership of the property, we may assign, sell, or otherwise transfer our equitable interest in that purchase contract to a third-party investor buyer in exchange for a fee. This is a well-established, legal real estate business model in Arizona, and it is separate and distinct from providing real estate brokerage services.
Arizona Real Estate Wholesaling and its representatives are not licensed real estate brokers or salespersons, and we do not provide real estate brokerage services such as listing property on the MLS, representing a party as a fiduciary agent, or negotiating on behalf of a licensed brokerage relationship. We act solely as a principal (buyer) in our own transactions, or as an assignor of our contract rights to another investor buyer.
Any verbal or written cash offer estimate we provide before a signed purchase agreement is non-binding and subject to change based on further review of the property, title, and other relevant factors. No obligation exists on either side until both parties have signed a formal, written purchase agreement.
Selling a property — especially in situations involving foreclosure, probate, divorce, or tax issues — can have significant legal and financial consequences. We encourage every seller to seek independent legal and/or financial advice from a licensed Arizona attorney, CPA, or other qualified professional before signing any purchase agreement.