1. What a Real Estate Wholesaler Does
A real estate wholesaler enters into a purchase contract with a seller for a property and then assigns the wholesaler's rights under that contract to a third-party buyer (in our case, a luxury spec builder) for a fee, before closing. The seller ultimately conveys the property directly to the third-party buyer at closing. The wholesaler does not take title to the property.
This is a legal business activity in Arizona. It is distinct from the activities that require a real estate license (representing another person in a real estate transaction as an agent, broker, or salesperson).
2. Arizona A.R.S. § 44-5101 — Written Disclosure
Arizona Revised Statute § 44-5101, effective September 24, 2022, requires that before a real estate wholesaler enters into a purchase contract with an owner, the wholesaler must disclose in writing that:
- The wholesaler is an equitable owner of a real property purchase contract, not a licensed real estate broker or salesperson;
- The wholesaler intends to profit by assigning the wholesaler's interest in the purchase contract; and
- The wholesaler's compensation depends on assignment of that contract.
Luxury Lot Pro provides this written disclosure to every seller before any binding purchase agreement. The disclosure is a separate document that you sign, acknowledging you understand the business model. You are not obligated to proceed after receiving the disclosure.
3. Not a Licensed Brokerage
Luxury Lot Pro LLC is not a licensed Arizona real estate brokerage. We do not:
- List properties on the MLS or represent sellers in a public marketing capacity
- Represent buyers in negotiating for properties we do not have under contract
- Provide fiduciary agency services
- Hold or accept trust funds on behalf of parties to a transaction
- Collect commissions or represent ourselves as licensed real estate professionals
If your transaction would benefit from licensed brokerage representation, we will tell you and encourage you to work with a licensed broker.
4. How We Get Paid
Our compensation is an assignment fee paid at closing by the buyer to whom we assign the contract. This fee is separate from the purchase price paid to you as the seller. You receive the full amount specified in your purchase agreement. The assignment fee is disclosed in the closing statement.
We do not charge sellers a fee for our services. We do not collect commissions. We do not require sellers to pay us for a valuation, an introduction, or any other pre-contract activity.
5. Inspection Contingency
Every purchase agreement we enter includes a standard 10-day inspection contingency, allowing you or us to terminate the agreement if inspection reveals conditions materially inconsistent with our understanding at the time of contract. This is standard industry practice.
6. Fair Housing
Luxury Lot Pro complies with the federal Fair Housing Act and the Arizona Fair Housing Act. Property acquisition is offered without regard to race, color, religion, sex, handicap, familial status, or national origin.
7. Legal & Financial Advice
We are not attorneys, tax professionals, or financial advisors. Before signing any purchase agreement, you are encouraged to consult independent legal, tax, and financial counsel. All purchase agreements are drafted or reviewed by a licensed Arizona attorney of record.
8. Your Right to Terminate
You may withdraw from any conversation with Luxury Lot Pro at any time before signing a binding purchase agreement, with no obligation and no fee. After signing, you retain the standard inspection-period termination rights specified in the agreement.
9. Complaints & Regulatory Contact
If you believe Luxury Lot Pro has misrepresented its status or violated the disclosure requirements of A.R.S. § 44-5101, you may contact:
- Arizona Department of Real Estate — azre.gov — for questions about licensing and real estate activity.
- Arizona Attorney General, Consumer Protection Division — azag.gov/consumer — for consumer complaints.
10. Contact
For disclosure questions: hello@luxurylotpro.com