Reviewed October 2019

FACTS:

Investor, not a licensed contractor, purchased a property to “fix and flip.”

Investor then executed a contract to sell the property to Buyer.

Buyer’s agent states Investor must disclose in the purchase contract the names and license numbers of contractors who performed work at the property.

ISSUE:

Does Investor have to disclose licensed contractors when performing fix and flips?

ANSWER:

Yes.

DISCUSSION:

Investor, because he is not a licensed contractor, must disclose in the purchase contract the names and license numbers of all contractors performing services at the property.  A.R.S. § 32-1121(A)(6).

Note: Investor must also remember that A.R.S. § 32 -1121(A)(14) states all work performed at the property, for the purpose of selling the property, must be performed by licensed contractors if the cost of materials and labor, in an aggregate, totals $1,000.00 or more.