The real estate market can be a little confusing and intimidating to people who don’t have much experience with it. Whether you’re in the market to sell your current home, or looking to buy a new home, it’s important to understand some of Arkansas’ real estate laws to avoid potential legal issues and ensure a successful transaction that leaves everybody happy.
Disclosures
In Arkansas, sellers are required to disclose any known defects in the property that have the potential to affect its value or safety.
This might include problems with plumbing, electrical systems, or structural issues.
If you, or your seller, fails to disclose these issues to the buyer, it could result in legal action and financial penalties– for example, you could be sued for breach of contract or even fraud!
In the event that your property does have some significant issues, it’s always better to be upfront with buyers– they’re going to find out eventually, and you don’t want to deal with the aftermath of trying to hide something that could become a major safety issue.
Property Taxes
Arkansas’ property tax system is based on the value of the property.
This value is determined by the county assessor, and the tax rate is set by the local government.
Property taxes are due annually, and failure to pay them can result in fines or even foreclosure. If you don’t want to risk losing your home, be sure to pay those taxes!
Homeowners Associations
Many residential properties in Arkansas are governed by homeowner’s associations (HOAs). These organizations have specific rules and regulations that must be followed by all residents.
These rules can cover everything from the color of your home’s exterior to the number of cars you can park in your driveway.
It’s very important to familiarize yourself with the HOA’s rules before purchasing a property that’s governed by an HOA. You don’t want to make the investment in a home only to find that the HOA’s rules and dues are way more than you bargained for– and if you want to paint your house a crazy color, living in an HOA neighborhood is probably not the right choice for you!
Foreclosure Laws
If a homeowner falls behind on mortgage payments, their mortgage lender has the right to foreclose on the property. You could also face foreclosure if you don’t pay your property taxes.
The foreclosure process can be complex and time-consuming, and homeowners have certain rights during the process. For example, if the homeowner is able to pay the amount they owe before the foreclosure sale, they can stop the foreclosure process.
Closing Costs
It’s essential to budget for closing costs when you’re preparing to purchase a home.
“Closing costs” is an umbrella term that refers to various expenses that come along with securing a loan for your home. Typically, closing costs range from 2-5% of your loan amount, and they cover things like appraisals, attorney fees, taxes, title insurance, and more.
Buyers should be sure to review these costs carefully before closing on a property to ensure they understand the total cost of the transaction.
Don’t be afraid to ask questions!
If you’re in the process of buying or selling a home and have questions about how it all works, don’t hesitate to ask. It’s essential for both buyers and sellers to understand Arkansas real estate laws, which are complex and can vary depending on the property and its location.
Work with a knowledgeable real estate agent to make sure you’re fully prepared and informed when making one of the most important purchases of your life. If you’ve got questions about the process or are ready to start the buying or selling process, give Edge Realty a call today!