Arkansas 2023 Regular Session

Arkansas Senate Bill SB553 Compare Versions

Only one version of the bill is available at this time.

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1	1	Stricken language would be deleted from and underlined language would be added to present law.
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4	4	State of Arkansas 1
5	5	94th General Assembly A Bill 2
6	6	Regular Session, 2023 SENATE BILL 553 3
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8	8	By: Senator C. Penzo 5
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10	10	For An Act To Be Entitled 7
11	11	AN ACT TO ADD AN EXEMPTION TO REAL ESTATE LICENSURE; 8
12	12	TO CREATE THE ARKANS AS REAL ESTATE WHOLE SALE CONSUMER 9
13	13	PROTECTION ACT; AND FOR OTHER PURPOSES. 10
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16	16	Subtitle 13
17	17	TO ADD AN EXEMPTION TO REAL ESTATE 14
18	18	LICENSURE; AND TO CREATE THE ARKANSAS 15
19	19	REAL ESTATE WHOLESALE CONSUMER PROTEC TION 16
20	20	ACT. 17
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23	23	BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 20
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25	25	SECTION 1. Arkansas Code § 17 -42-104(c), concerning exemptions to real 22
26	26	estate licensure, is amended to read as follows: 23
27	27	(c) A person or entity shall not under any circumstance qualify for an 24
28	28	exemption under this section if the person or entity: 25
29	29	(1) Obtains an equitable interest in real estate with knowledge 26
30	30	that the interest was obtained on behalf of a person or entity that intends 27
31	31	to gain an interest in the real estate other than that of ownership ; or 28
32	32	(2) Publicly markets for sale an equitable interest in a 29
33	33	contract for the purchase of residential real property between a property 30
34	34	owner and a prospective purchaser; or 31
35	35	(3) Strategically circumvents the requir ement for licensure 32
36	36	thereby eliminating remedies available to consumers through the commission. 33
37	37	34
38	38	SECTION 2. Arkansas Code § 17 -42-109(b), concerning civil penalties 35
39	39	for engaging in unlicensed real estate activity, is amended to read as 36 SB553
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44	44	follows: 1
45	45	(b) The fact that a person offers to engage in or offers to perform 2
46	46	any practice, act, or operation set forth in § 17 -42-103(10) or § 17-42-3
47	47	104(c) without a license is prima facie evidence that the person is engaged 4
48	48	in unlicensed real estate activity. 5
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50	50	SECTION 3. Arkansas Code Title 18, Chapter 12, is amended to add an 7
51	51	additional subchapter to read as follows: 8
52	52	Subchapter 8 – Arkansas Real Estate Wholesale Consumer Protection Act 9
53	53	10
54	54	18-12-801. Title. 11
55	55	This subchapter shall be known and may be cited as the “Arka nsas Real 12
56	56	Estate Wholesale Consumer Protection Act”. 13
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58	58	18-12-802. Definitions. 15
59	59	As used in this subchapter: 16
60	60	(1) “Residential real property” means real property with fewer 17
61	61	than five (5) dwelling units; 18
62	62	(2) “Wholesale buyer” means a person or entity t hat enters into 19
63	63	a purchase contract for residential real property as the buyer for the 20
64	64	purpose of assigning the contract to another person or entity; and 21
65	65	(3) “Wholesale seller” means a person or entity that: 22
66	66	(A) Enters into a purchase contract for r esidential real 23
67	67	property as the seller; 24
68	68	(B) Does not hold legal title to the real property; and 25
69	69	(C) Assigns the contract to another person or entity. 26
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71	71	18-12-803. Disclosure required. 28
72	72	Before a wholesale buyer or wholesale seller enter into any binding 29
73	73	agreement regarding the transfer of residential real property: 30
74	74	(1) A wholesale buyer shall disclose in writing attached to the 31
75	75	contract to a seller that the buyer is a wholesale buyer; and 32
76	76	(2) A wholesale seller shall disclose in writing atta ched to the 33
77	77	contract to a buyer that the seller is a wholesale seller and that the 34
78	78	wholesale seller may not be able to convey title to the property. 35
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84	84	18-12-804. Failure to disclose. 1
85	85	(a) Notwithstanding any other provisions contained in the contract for 2
86	86	sale, if a wholesale buyer fails to disclosure any information as required by 3
87	87	this subchapter, the seller may terminate the contract for sale at any time 4
88	88	before closing without penalty and may retain any earnest money paid by the 5
89	89	wholesale buyer. 6
90	90	(b) Notwithstanding any other provisions contained in the contract for 7
91	91	sale, if a wholesale seller violates this subchapter, the buyer may terminate 8
92	92	the contract for sale at any time before closing without penalty and shall be 9
93	93	refunded all earnest money paid by the buyer. 10
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