Under the Arkansas Residential Property Disclosure Act (Ark. Code Ann. § 18-60-201 et seq.), which of the following transactions is NOT exempt from the seller disclosure requirement?
Correct Answer
D) A standard arm's-length sale of a previously occupied single-family home
A standard arm's-length sale of a previously occupied single-family home is NOT exempt from the Arkansas Residential Property Disclosure Act. This is precisely the type of transaction the Act is designed to cover — a seller who has lived in and has knowledge of the property's condition must complete the required disclosure form. All other options represent transactions that are specifically exempted under the Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The Statute of Frauds is a legal requirement that certain types of contracts must be in writing and signed to be enforceable. In real estate, all contracts for the sale of land or interests in land must be in writing.
A time is of the essence clause in a contract means that all deadlines and dates specified in the agreement are strictly enforceable, and failure to meet them constitutes a material breach.
An appraisal contingency allows the buyer to cancel or renegotiate the contract if the property's appraised value comes in lower than the agreed-upon purchase price. This contingency protects buyers from overpaying.
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