The proposed bill aims to amend existing laws regarding real estate licensure in Arkansas by introducing an exemption for certain activities related to wholesale real estate transactions. Specifically, it modifies Arkansas Code 17-42-104(c) to clarify that individuals or entities cannot qualify for an exemption if they publicly market an equitable interest in a contract for the purchase of residential real property or if they strategically circumvent licensure requirements. Additionally, it establishes that engaging in unlicensed real estate activities is prima facie evidence of wrongdoing, as outlined in the amended Arkansas Code 17-42-109(b).

Furthermore, the bill introduces the Arkansas Real Estate Wholesale Consumer Protection Act, which includes definitions for "residential real property," "wholesale buyer," and "wholesale seller." It mandates that both wholesale buyers and sellers provide written disclosures regarding their status and the potential inability to convey title to the property before entering binding agreements. The bill also stipulates that failure to disclose required information allows the seller or buyer to terminate the contract without penalty and retain or receive a refund of earnest money, respectively.

Statutes affected:
SB 553: 17-42-104(c), 17-42-109(b)