SB 909

WHOLESALING REAL PROPERTY This bill provides that a buyer who enters into a contract with a seller to purchase real property engages in the act of wholesaling the real property when the buyer, after entering into the contract with the seller, assigns the buyer's equitable interest in the real proper t y to a subsequent purchaser for a higher price than the buyer paid for the real property. As used in this bill, "equitable interest"" means the right of a buyer to benefit or profit from real property after the buyer has entered into a contract for the pu r chase or sale of real property with a seller but before the legal title has been transferred from the seller to the buyer. REQUIREMENTS FOR A BUYER ENGAGING IN WHOLESALING REAL PROPERTY This bill authorizes a buyer who has entered into a contract with a seller to purchase real property to engage in wholesaling the real property if the buyer discloses all of the following information in writing to the following persons:  A potential subsequent purchaser or assignee, the nature of the buyer's equitable interest in the real property.  The seller of the property, the buyer's intent to market its equitable interest prior to execution of the contract, and the effective date of any assignment of the buyer's interest to a subsequent purchaser of the real property at least three business days prior to the effective date of any assignment, if the contract allows for such assignment. This bill requires such disclosures to be in bold, large font print and included in the written agreement. VIOLATIONS This bill re quires an action for a violation of this bill to be commenced within two years after the execution of a contract for purchase and sale of real property."