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