Buyer agreements were already required by law in 18 states plus DC.Not displaying commissions on the MLS is less transparent, but is no big deal at all.

My daughter's father-in-law and I split the down payment as a gift to the kids to get started. 

@Christle Stezskal Some states have expanded the ban the box law of which Illinois is one. 

Is it because:* California or local municipality laws prevent this?

Mat helped to establish my Solo(k) through his law firm a few years ago.

According to State statue 509.032 (b) A local law, ordinance, or regulation may not prohibit vacation rentals or regulate the duration or frequency of rental of vacation rentals.

I don’t own anything in Arizona, and just looked up the related laws: https://www.azleg.gov/ars/33/01321.htm.It sounds like you may be familiar with them, as you did what’s expected by the letter of the law.

Also, you don’t need  $360k if the loan gets called; with a principal loan balance of $240k it would be more like $250k.Whether you do a wrap, sub to, or lease option when dealing with a owner occupant / consumer there are many legal “traps” to navigate because of consumer protection laws at a state level, and CFPB and Dodd Frank at the Federal level.  

Each state will have their own contracts, laws, etc. 

My question is, why isn't there a legal challenge against this law?