AZ HB2728

Requires equity purchasers (persons acquiring title to residential properties in foreclosure, default, or trustee sale) to be licensed under title 6, chapter 9, articles 1 or 2 of Arizona Revised Statutes.

Mandates covered contracts between equity purchasers and equity sellers be in writing with 12-point boldfaced type, include specific terms (consideration, payment terms, possession transfer, reconveyance arrangements), and provide a 5 business day cancellation period with attached notice of cancellation form.

Prohibits equity purchasers from making false or misleading statements about property value, foreclosure proceeds, timing of foreclosure, contract terms, or seller's rights; also prohibits misrepresenting themselves as acting on behalf of the seller or assisting to save the house without good faith basis.

Establishes requirements for reconveyance arrangements including verification of seller's ability to pay, in-person closing with licensed escrow agent or independent attorney, written consent for property transfers, and payment to seller of at least 82% of fair market value within 120 days or reconveyance of title.

Provides equity sellers right to rescind transactions within 2 years for material violations, allows civil actions for damages plus up to 3 times actual damages, and establishes criminal penalties ranging from class 1 misdemeanor to class 5 felony with fines up to $25,000.