Key Takeaways
- Arkansas has NO mandatory seller disclosure statute for residential property—it is a "caveat emptor" state
- The Arkansas Realtors Association provides a voluntary Seller Property Disclosure form used by many licensees
- Licensees must still disclose known material defects that affect property value
- Lead-based paint disclosure IS required for pre-1978 homes (federal law)
- Arkansas has statutory protection for psychologically impacted property (deaths, crimes, AIDS/HIV)
Arkansas Property Disclosures
Arkansas's approach to property disclosure differs significantly from most other states.
No Mandatory Seller Disclosure Statute
Arkansas has no state law requiring sellers to provide a formal disclosure statement to buyers of residential property.
Key Points
| Fact | Implication |
|---|---|
| No disclosure statute | Sellers not legally required to disclose |
| Caveat emptor | "Buyer beware" principle applies |
| Courts enforce | Caveat emptor clauses in contracts upheld |
Important: This is a significant difference from states like California, Texas, and Florida which require detailed seller disclosures.
Voluntary Seller Property Disclosure
Despite no legal requirement, many Arkansas real estate transactions use a voluntary disclosure form:
Arkansas Realtors Association Form
| Feature | Details |
|---|---|
| Who provides | Arkansas Realtors Association |
| Required by law | No—completely voluntary |
| Common practice | Widely used by Arkansas Realtors |
| Contents | Property condition questions |
| Responses | Yes, No, Unknown, Not Applicable |
Best Practice: Many brokerages strongly encourage or require sellers to complete the voluntary disclosure form to reduce liability.
Licensee Disclosure Obligations
While sellers may not be required to disclose, licensees have professional obligations:
Material Defects
Licensees must disclose known material defects that:
- Could affect the property's value
- A reasonable person would want to know
- Are not readily apparent
What IS a Material Fact?
| Material Facts | Examples |
|---|---|
| Physical defects | Foundation issues, roof leaks, plumbing problems |
| Environmental hazards | Mold, flooding history, contamination |
| Legal issues | Zoning violations, easements, liens |
| Property condition | Systems not functioning, structural damage |
Psychologically Impacted Property
Arkansas law provides statutory protection regarding stigmatized or psychologically impacted property.
No Duty to Disclose
Under Arkansas Code § 17-42-107, licensees and sellers have no duty to disclose:
| Protected Information | Example |
|---|---|
| Deaths on property | Natural, suicide, murder |
| Criminal activity | Prior crimes at location |
| HIV/AIDS | Occupant's health status |
| Felony convictions | Former occupant's record |
| Proximity to sex offenders | Registered offenders nearby |
Exception: Direct Questions
If a buyer directly asks about a specific issue:
- Licensee should not lie
- May refer buyer to appropriate sources
- May decline to answer
Example: If asked about deaths, a licensee may say "I recommend you research that independently" rather than answering directly.
Methamphetamine Contamination
Arkansas does have disclosure requirements for methamphetamine contamination:
| Requirement | Details |
|---|---|
| Disclosure required | If property was used for meth production |
| Remediation | Must be professionally cleaned |
| Documentation | Clean-up records required |
Federal Lead-Based Paint Disclosure
For homes built before 1978, federal law requires:
| Requirement | Details |
|---|---|
| Disclosure | Known lead-based paint hazards |
| Pamphlet | EPA pamphlet "Protect Your Family From Lead" |
| Inspection period | Buyer has 10 days to inspect (waivable) |
| Form | Lead-Based Paint Disclosure form |
Warning: Lead-based paint disclosure is REQUIRED regardless of Arkansas's no-disclosure stance on other issues. This is federal law.
Flood Zone Disclosure
While not a state requirement, licensees should be aware:
| Consideration | Details |
|---|---|
| FEMA flood maps | Available for all properties |
| Lender requirements | May require flood insurance |
| Best practice | Inform buyers to check flood status |
Which statement is TRUE about Arkansas's property disclosure requirements?
Under Arkansas law, which of the following MUST be disclosed?
If a buyer directly asks an Arkansas licensee whether anyone died in a house, what should the licensee do?