Arkansas HOA Seller Disclosure Requirements: What Documents You Must Provide

Arkansas HOA Seller Disclosure Requirements: What Documents You Must Provide

Arkansas has no state statute that mandates a specific list of HOA disclosure documents at the time of sale. Unlike states such as California or Florida that require sellers to deliver a detailed package of association records, Arkansas leaves disclosure obligations to your declaration of covenants, your bylaws, and the purchase contract. This absence of state law does not mean you can skip disclosure. Your governing documents almost certainly require you to provide financial and governance records to a buyer, and failure to comply can create liability after closing.

The Arkansas Attorney General's office oversees consumer protection and can investigate complaints about deceptive practices in real estate transactions, but it does not enforce HOA specific disclosure rules. The Arkansas Real Estate Commission regulates real estate brokers and agents, and those professionals have a duty to disclose known material facts about a property, including HOA status, fees, and restrictions. However, the Commission does not publish a checklist of required HOA documents for sellers.

What Your Governing Documents Require

Your first step is to review your declaration and bylaws. Most Arkansas HOA governing documents include a provision that requires the seller to request a resale certificate or disclosure package from the association and deliver it to the buyer before closing. The resale certificate typically includes the current assessment amount, any past due balances, the status of the reserve fund, pending special assessments, and a statement of any violations or liens against the property.

If your governing documents do not specify which documents must be provided, you should still gather a complete set of records to avoid disputes. A buyer who discovers after closing that the association has a large deferred maintenance liability or a pending special assessment may claim that the seller or the seller's agent failed to disclose material facts.

A standard disclosure package in Arkansas includes the following documents:

• Current monthly or annual assessment amount
• Statement of account showing any past due amounts or liens
• Copy of the declaration of covenants, conditions, and restrictions
• Copy of the bylaws and any amendments
• Copy of the most recent annual budget
• Copy of the most recent reserve study, if available
• Summary of any pending or anticipated special assessments
• Statement of any architectural or rule violations associated with the property
• Contact information for the board and management company
• Certificate of insurance showing the association's liability and property coverage

Your association may charge a fee to prepare this package. The fee must be reasonable and should cover only the actual cost of compiling and copying the documents. Review your governing documents to confirm the maximum fee your association can charge.

Timing and Buyer Review Period

Because Arkansas has no statutory deadline, the timeline for delivering disclosure documents depends on your purchase contract and your governing documents. Most purchase contracts in Arkansas include a contingency that allows the buyer to review HOA documents within a specified period, typically 7 to 14 days after receipt. If the buyer does not receive the documents within that window, the buyer may have the right to terminate the contract without penalty.

Request the disclosure package from your association as soon as you list your property or accept an offer. Do not wait until the week before closing. Associations that rely on volunteer boards or part time management may need 10 to 14 days to compile the documents, and any delay can push back your closing date or give the buyer grounds to walk away.

A Local Example

The Chenal Valley area in west Little Rock includes dozens of planned communities and homeowner associations established between 1990 and 2015. In 2022, a seller in one of these associations provided a resale certificate to a buyer that showed no pending special assessments. Three months after closing, the association levied a 12,000 dollar per unit special assessment to replace deteriorated roads. The buyer sued the seller and the association, claiming that the board knew about the road condition before the sale and failed to disclose it. The case settled before trial, but the dispute cost both parties thousands in legal fees and damaged the association's reputation.

This example illustrates the importance of accuracy and completeness in your disclosure package. Even if Arkansas law does not require you to provide specific documents, you have a common law duty to disclose material facts that affect the value or desirability of the property.

What Buyers Should Request

If you are buying a property in an Arkansas HOA, do not rely on the seller to provide a complete disclosure package without prompting. Request the following documents in writing as part of your purchase contract:

• Resale certificate or seller disclosure package
• Financial statements for the past two years
• Meeting minutes for the past 12 months
• Copies of all governing documents and amendments
• Reserve study or maintenance plan
• Insurance declarations page showing coverage limits
• List of any ongoing or threatened litigation involving the association

Review these documents carefully within the contingency period. Look for red flags such as declining reserve balances, deferred maintenance projects, a history of special assessments, or a high percentage of delinquent accounts. Consult your attorney for your specific situation if you discover any issues that concern you.

What Boards Should Do to Support Sales

Your board should establish a written policy that governs how the association responds to resale certificate requests. The policy should specify the documents included in the package, the fee charged, and the turnaround time for delivery. A typical turnaround time in Arkansas is 10 business days from receipt of a written request and payment of the fee.

Designate one board member or your management company as the point of contact for resale requests. Maintain a template resale certificate that can be updated quickly with property specific information. Store all governing documents, financial statements, and meeting minutes in a central location so you can access them without delay.

Make sure your resale certificate includes accurate information about the reserve fund, pending special assessments, and any known deferred maintenance. Do not minimize or omit material facts to avoid scaring off a buyer. A buyer who discovers after closing that the association misrepresented its financial condition may sue the association for fraud or negligent misrepresentation.

How Manorway Can Help

Manorway's AI assisted platform stores your governing documents, financial statements, and meeting minutes in one secure location. When a seller or real estate agent requests a resale certificate, your board can generate the document in minutes instead of days. The platform tracks which properties have active resale requests, sends reminders to the designated board member or manager, and maintains a log of all disclosure packages delivered.

You can upload your declaration, bylaws, budget, and reserve study once and share them with multiple buyers throughout the year without manually compiling a new package each time. The system also flags upcoming special assessments or known violations so you do not accidentally omit material information from a disclosure package. When your board uses Manorway to manage resale requests, you reduce the risk of incomplete disclosure, speed up the sale process, and create a permanent record of what was delivered to each buyer.

Arkansas sellers and associations that invest time in complete, accurate disclosure avoid disputes, protect their legal position, and support a smooth closing process for everyone involved.