Wholesaling Laws in Arizona: What Real Estate Investors Need to Know

Introduction

Arizona wholesalers need to be careful. The state passed legislation that directly targets deceptive wholesaling practices and tightens how you can market contracts.

If you are wholesaling in Phoenix, Tucson, or anywhere else in Arizona, here is what you need to know about the law, the risks, and how to stay compliant.

What Changed in Arizona?

In 2021, Arizona passed House Bill 2747 to regulate wholesaling. This bill requires wholesalers to disclose their intent and places limits on how properties can be advertised.

The key change is this:

Wholesalers must disclose in writing that they are not the property owner and are assigning their interest.

Is a License Required to Wholesale?

No, you do not need a real estate license to wholesale in Arizona, but the law requires proper disclosure and ethical practices. If you present yourself as the property owner or a licensed agent, you are violating state law.

What Activities Are Regulated?

• Marketing a property without ownership or a license
  
• Failing to disclose that you are not the property owner
  
• Misrepresenting your relationship to the property

You are allowed to market the purchase contract but not the property itself unless you are licensed.

How to Disclose Correctly

Make sure your contracts, marketing materials, and communications include a written statement like:

“Buyer is not the owner of record. Buyer is under contract and intends to assign their interest to another buyer for a profit.”

Include this in your emails, deal sheets, and purchase agreement if assigning. Be sure to stay aware of all the latest laws and regulations of the state to truly stay ahead in the game and avoid major mistakes.

How REsimpli Helps in Arizona

To operate legally and efficiently:

• Use REsimpli’s built-in contract templates with preloaded disclosure language
  
• Track whether each deal is being assigned or double-closed
  
• Keep records of all communication with sellers and buyers
  
• Tag leads based on deal structure and location to filter for Arizona-specific compliance

Closing Thoughts

Arizona is still an excellent market for wholesaling, but it is now a disclosure-first state. Investors who operate in the shadows will get penalized. Those who stay transparent and document their process can continue scaling without issue.

If you want to continue wholesaling in Arizona safely, the right disclosures, contracts, and systems are nonnegotiable.