Arkansas guide

Arkansas condo document review

Arkansas condo document review turns on a single fact: the state gives buyers almost no statutory protection, so the recorded documents are effectively the law for a community and document review is the buyer's only real safeguard. Condominiums run under the thin 1961-era Horizontal Property Act (Ark.

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Code §§ 18-13-101 to -120), modernized only in 2025 by Act 516. There is no statutory resale or disclosure packet, no buyer rescission right, and Arkansas is a caveat emptor state, so a seller has no general duty to disclose condition. The one statutory financial-records right is the receipts-and-expenditures book under § 18-13-110 — far narrower than CCIOA-style access. The highest-value items to request are a written statement of unpaid assessments (critical because § 18-13-116(d) can make those survive a foreclosure and bind the buyer), the master deed and any amendments, the master insurance declarations page and its deductible, the budget and reserve status, and the board and member meeting minutes.

Confirm which version of the law governs

Act 516 of 2025 modernized the Horizontal Property Act — adding declarant and development rights, unit-boundary rules, interest on past-due dues, and declarant funding obligations — but it applies prospectively: it governs regimes organized on or after September 1, 2025, and older regimes only if they opt in by amending the master deed. The governing version affects unit boundaries, voting, and declarant rights, so confirm from the recorded master deed whether the regime is under the pre-2025 Act or has opted into Act 516 before relying on any particular protection.

There is no statutory disclosure packet or cancellation right

The Horizontal Property Act does not require an association to deliver financials, budgets, insurance summaries, minutes, or a statement of unpaid assessments to a buyer, and there is no statutory rescission period. Arkansas is a caveat emptor state: a seller has no general statutory duty to complete a property-condition disclosure form and is liable only for affirmative fraud, active concealment of a known material defect, or federal lead-paint disclosure on pre-1978 housing. Whatever a buyer receives is a matter of contract negotiation, so build inspection and document-delivery contingencies into the purchase contract.

Get a written statement of unpaid assessments

This is the single most important Arkansas-specific request. There is no statutory estoppel, and under § 18-13-116(d) the purchaser of a unit is jointly and severally liable with the seller for unpaid assessments through conveyance. In First State Bank v. Metro District Condominiums (2014 Ark. 48) the Arkansas Supreme Court held this survives a foreclosure with no exception, so a foreclosure or REO buyer can inherit the prior owner's delinquent dues. Obtain a written statement of unpaid assessments from the board or manager before closing and confirm, if possible, that it binds the association.

Read reserves, insurance, and the recorded documents together

Arkansas mandates no reserves, so read any reserve balance directly against the building's age and components and assume future special assessments where it is thin. Master coverage is permissive under § 18-13-117, so confirm a real master policy exists and read its wind/hail deductible and claims history. Pull the master deed, bylaws, and plats from the county recorder, search for recorded liens and lis pendens, and confirm whether the community is actually an improvement district (a different, stronger-lien assessment regime).

Arkansas legal references

Informational only. Not legal advice. Always confirm against current statute and counsel.

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Reviewer's checklist

  • Confirm whether the regime is under the pre-2025 Act or has opted into Act 516
  • Build inspection and document-delivery contingencies into the contract (no statutory rescission)
  • Obtain the recorded master deed, bylaws, and plats from the county recorder
  • Obtain a written statement of unpaid assessments (critical — § 18-13-116(d) survival risk)
  • Request the current budget and 2–3 years of financial statements
  • Request any reserve study and the current reserve balance (none required in Arkansas)
  • Read the master insurance declarations page for the wind/hail deductible and claims history
  • Confirm a master policy exists at all (coverage is permissive, § 18-13-117)
  • Request the board and member meeting minutes (special assessments, loans, litigation, storm damage)
  • Run a county records search for recorded liens and lis pendens against the unit or association
  • Confirm whether the community is actually an improvement district (different lien regime)
  • Confirm the association's good standing with the Secretary of State

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How CondoSignal reads a document package

Source documents

  • Declaration & bylawsthe rules
  • Budget & financialsthe money
  • Reserve studythe big repairs
  • Meeting minuteswhat the board fears
read together

Cross-reference

The risk lives in the contradiction between documents.

An assessment in the minutes but not the estoppel; a reserve the budget never funds.

scored

Risk report

Severity-graded across 8 categories.

Every finding cites the document, page number, and quoted text.

How CondoSignal reviews this

We read the reserve study, operating budget, and 24 months of meeting minutes togetherarkansas condo document review risk usually lives in the contradiction between documents, not in any single one of them. Every finding cites the source document, the page number, and the quoted text behind it.

See our 8-category framework →

Risk Intelligence

Review the documents before your contingency ends

Most buyers get 7–14 days to review condo documents. Upload the packet — we read the reserve study, budget, minutes, and insurance summary and flag the risks, every finding linked to the exact page. Free.

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We can connect you with vetted real estate lawyers, mortgage brokers, and insurance brokers familiar with the specifics of condo and HOA transactions.

  • HOA lawyer
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Reviewed by Kirk Hasley, Founder. Every claim here is checked against current Arkansas statute and primary sources, using the same documented review framework we run on every file. Last reviewed June 13, 2026.

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Risk Intelligence

Review the documents before your contingency ends

Most buyers get 7–14 days to review condo documents. Upload the packet — we read the reserve study, budget, minutes, and insurance summary and flag the risks, every finding linked to the exact page. Free.

Expert Matching

Need a real estate lawyer or mortgage specialist?

We can connect you with vetted real estate lawyers, mortgage brokers, and insurance brokers familiar with the specifics of condo and HOA transactions.

  • HOA lawyer
  • Mortgage broker
  • Insurance broker