Arkansas Laws
Requirement to Record: An option to purchase real estate is not required to be recorded, however, it is recommended. Purchase options may be recorded with the county recorder where the property is located.[1]
Expiration: Arkansas law does not explicitly define an expiration timeframe for a recorded option to purchase. Therefore, a recorded option ceases to provide notice when the option expires.
Maximum Term: State law does not mandate a maximum term for an option to purchase. However, state contract law specifies that such options may not exist in perpetuity. It is recommended that an option has clearly defined start and end dates, and that the term does not exceed 21 years.[2]
No Duration: State law does not directly address the possibility that an option may not have specific start or end dates. In this case, a court would likely default to common law practices and determine if the option was exercised within a “reasonable time.”
Signing Requirements: An option to purchase must be in writing, signed by the seller, and acknowledged by a notary.[3][4]
Required Disclosures (3)
1. Landlord’s Name and Address – The lease must mention the name and address of the landlord or someone authorized to manage the property.[5]
2. Lead-Based Paint Disclosure & EPA Pamphlet – Required for any housing structure built prior to 1978 as the harmful substance may be in prior layers of paint and pose a danger with any cracking or chipping walls.[6]
3. Move-in Inspection Form – The landlord must disclose known defects to the following;
- Electricity;
- Potable drinking water;
- Sanitary sewer system and plumbing;
- Functioning roof and building; and
- Heating and air conditioning systems.[7]
Seller’s Disclosures (1)
1. Seller’s Property Disclosure Form (optional) – Although there are no regulations demanding a seller to disclose property defects, it’s common practice for the seller’s agent to include a property disclosure form in a residential purchase agreement.