Arkansas Real Estate Purchase Agreement
An Arkansas real estate purchase agreement is a crucial document that protects both buyers and sellers by outlining agreed-upon terms. It details each party's obligations and serves as evidence in case any disputes arise throughout the real estate transaction. This binding agreement also contains information about the property being transacted.
Legal Aspects
Buying or selling a home in Arkansas involves a complex legal process that requires binding terms. A well-draftedArkansas real estate purchase agreement contains clauses and provisions that protect the interests of both buyers and sellers.
Writing Requirement
- Legal property description: An accurate property description per county tax records must be included, encompassing aspects like address, parcel number, exact square footage, lot dimensions, year built, number of bedrooms/bathrooms, and appliances included to avoid ambiguity.
- Sale terms: The negotiated financial conditions should clearly state the offered purchase price and earnest money deposit amount provided upon contract acceptance. Details on down payment percentages, closing date, possession transfer timing, and typical Arkansas settlement procedures should also be emphasized so expectations align.
- Contingency provisions: Standard contingency clauses that enable buyers to void the contract under certain scenarios should be integrated, like if buyers cannot secure financing to pay the full price by closing. Wiggle room to back out based on unfavorable home inspections is customary, too.
- Signature fields: Ample signature fields for buyers, sellers, witnesses, and real estate agents, if applicable, should be present. All signatures make the purchase agreement legally binding per Arkansas real estate statutes.
- Customizable terms: Blank sections empowering buyers and sellers to add special provisions or adjust clauses to fit their transactions.
Required Disclosures
Arkansas has no formal disclosure law requiring sellers to provide a statement to buyers about a home’s condition. The legal principle of caveat emptor (“buyer beware”) prevails, placing responsibility on the buyer to thoroughly inspect the property. So buyers have to carry out necessary due diligence before signing an Arkansas real estate purchase agreement. However, the Arkansas Real Estate Commission mandates the following disclosures if using a real estate agency.
- Lead paint disclosure for pre-1978 homes: Sellers must furnish documentation if aware of health/safety risks like asbestos, black mold, or weak spots in flooring that could harm buyers. Non-disclosure risks liability for injuries.
- Fiduciary relationships: If a fiduciary duty exists between seller and buyer (e.g., doctor-patient), additional disclosures are mandated per Arkansas real estate law. Requires revealing defects and acting in the buyer’s best interest.
- Material defects: Sellers in fiduciary relationships must proactively disclose all material defects potentially impacting property value/desirability. Broad revelation duties exist to serve the buyer’s interests.
- Direct questions: If buyers directly ask sellers about specific property conditions, Arkansas statutes require truthful responses rather than omitting known issues. Evading buyer inquiries violates disclosure duties.