Understanding the Arkansas real estate laws – or those of any state – is crucial whether the land use is residential or commercial.
You need to understand statutes relating to owning, hiring, or leasing the property to handle the following issues.
Common real estate laws
Probate estate laws
- According to Arkansas real estate laws, the property and the assets are distributed according to the law.
- Diverse real estate laws include issues concerning estates, wills and intestate successions of the state.
Arkansas Real Estate Laws don’t have the features to disclose formally.
The seller is not obliged to give a formal disclosure statement to his home or property buyer.
Arkansas courts enforce caveat emptor clauses to complete the contract of a home or property.
Caveat emptor is a Latin term which means “Let the buyer beware“. This rule describes the duty of a seller during the sale.
There is no actual duty to give suggestions to the buyer.
In many states in the USA, the seller has to disclose this formally and fill out a standard form. However, in Arkansas, the buyer must take the responsibility to discover any property defects.
The disclosure is not mandated legally or in the caveat emptor doctrine. However, there are Arkansas Real Estate Commission (AREC) regulations regarding disclosure of property defects.
AREC is a state agency that enforces most of the Arkansas real estate laws. This agency also issues licenses to real estate as well as administering and regulating real estate agents
AREC Regulation 10.6 states “A Real Estate agent should disclose the material and documental defects in the home or property to a potential buyer. He cannot hide the defects intentionally or negligently.”
That’s why AREC suggests filling out a disclosure form issued by them.
If any seller or real estate agent refuses to do so, then the AREC can suspend his license.
The seller may think that he is lucky to live in such a state where it is not mandatory to disclose property defects, but there are some regulations regarding how a buyer may earn remedies.
Remedies for buyers in Arkansas real estate laws
A buyer may file a lawsuit against the seller if:
- A fiduciary relationship exists between the buyer and seller.
- The seller fails to disclose details which could impact the buyer’s health or security
- The seller hides any specific property defects.
For the reasons above, a buyer can file a suit against the seller for acts such as misrepresentation, negligence, or suppression of material fact.
It is better to inspect a property or home before buying because it can take a long time to receive remedies after filing a lawsuit.
If you have any questions or problem regarding Arkansas Real Estate Laws, please feel free to contact one of our Experienced Lawyers.