Linda is a licensed Arkansas salesperson working under Broker Thompson. She presents an offer from her buyer client to the seller. The seller accepts all terms and signs the purchase agreement. Linda then realizes the contract is for the sale of a vacant lot, and she forgot to include a legal description of the property. Under Arkansas law, which statement best describes the status of this contract?
Correct Answer
A) The contract is void because Arkansas requires all real estate contracts to include a complete legal description
Under the Arkansas Statute of Frauds (Ark. Code Ann. § 4-59-101), a contract for the sale of real property must be in writing and must contain a sufficient description of the property to be enforceable. A legal description is required to adequately identify the specific parcel being conveyed. Without a proper legal description, the contract lacks an essential element and is generally considered void for indefiniteness, as the subject matter of the contract cannot be determined with certainty.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An inspection contingency gives the buyer the right to have the property professionally inspected within a specified time frame and to negotiate repairs or cancel the contract based on the findings.
Liquidated damages are a predetermined amount of money specified in the contract that the non-breaching party is entitled to receive if the other party breaches. In real estate, the earnest money deposit typically serves as liquidated damages.
Novation is the substitution of a new contract for an existing one, or the replacement of one party with a new party, with the consent of all parties involved. The original party is completely released from all obligations.
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