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The buyer and seller executed an Arizona REALTORS® Residential Resale Purchase Contract (the “Contract.”).  While escrow was pending, the buyer provided notice to the seller that he was assigning the contract.  The buyer’s status as a wholesaler was not disclosed in any of the transaction documents. The seller, unhappy with the assignment, wants to cancel the Contract.


May the seller cancel the Contract?




Effective September 24, 2022, A.R.S. § 44-5101 (A) requires, before the parties enter into a binding agreement, that a “wholesale buyer of residential real property shall disclose in writing to the seller that the buyer is a wholesale buyer.”  Failure to make the required disclosure entitles the seller to cancel, regardless of any terms to the contrary in the Contract.  A.R.S. § 44-5101(C).  Here, because the required disclosure was not made in writing before the Contract was entered into, the seller may cancel the Contract.