Arkansas Legislative Bills

Arkansas Senate Bill 412, also known as the Real Estate Investor Disclosure Act, was enacted on August 1, 2023. It requires real estate investors purchasing property through LLCs, corporations, or trusts to disclose entity ownership and beneficial owner information to the seller. This law aims to increase transparency in real estate investing in Arkansas.

Under Arkansas real estate wholesaling laws, SB 412 adds a layer of disclosure for wholesale investors using entities like LLCs or corporations. Investors must now provide detailed ownership information when buying properties, helping sellers identify who ultimately controls the transaction.

The law applies to any investor purchasing real estate in Arkansas through entities such as LLCs, corporations, or trusts. Individual buyers are not subject to this disclosure requirement; it specifically targets non-personal ownership structures in real estate investing.

Investors must disclose the name and ownership details of the legal entity purchasing the property, including beneficial owners. This means revealing the individuals who actually control or benefit from the entity involved in the transaction.

SB 412 was enacted to improve transparency in the Arkansas real estate market by making it easier for sellers to understand who is behind purchasing entities. This helps prevent fraud, promotes fair dealings, and supports responsible investing practices statewide.

Currently, SB 412 is the primary legislation addressing entity disclosure in real estate investing. There are no additional specific Arkansas real estate wholesaling laws regulating assignment contracts or wholesaling practices, but investors should follow general contract and disclosure requirements.

Out-of-state investors using entities to buy property in Arkansas must comply with SB 412’s disclosure requirements just like local investors. This means submitting beneficial owner information during purchase transactions to remain compliant.

Investors should ensure full compliance by preparing clear documentation of entity ownership before closing deals. Working with real estate attorneys familiar with Arkansas laws can help streamline disclosures and avoid legal issues with the Real Estate Investor Disclosure Act.

Trusts purchasing Arkansas real estate must disclose the trust’s beneficial owners or beneficiaries to sellers. This disclosure ensures sellers know the individuals ultimately controlling or benefiting from the trust transaction.

To stay informed about Arkansas real estate wholesaling laws and investing regulations, regularly check official state legislative resources, industry news outlets, and consult with licensed Arkansas real estate professionals or attorneys specializing in real estate law.