Getting Every Owner’s Approval Before Marketing an Arkansas Property
Quick answer (FAQ-style)
If more than one person or entity has an ownership interest in the property, you must confirm who legally can sign a listing and get their written authorization before marketing. Typical steps: confirm ownership and authority, get a title report, obtain signed listing agreements from all owners or authorized representatives, and secure any court or lender approvals that apply. If the property is in probate, trust, subject to guardianship, or owned by a business, additional formal approvals may be required.
Detailed answer — Step-by-step guide under Arkansas law
1. Confirm who actually owns the property
Start with the recorded deed. The deed shows the legal owner(s) on record and how title is held (joint tenants, tenants in common, trustee, LLC, etc.). You can obtain deeds from the county recorder or through a title company. A title report or preliminary title search will reveal liens, mortgages, and all recorded owners and encumbrances.
2. Identify the decision-makers and how they must act
- Individual owners: typically each person listed on title must sign the listing unless title documents say otherwise.
- Joint tenants vs. tenants in common: ownership form affects who must sign. Tenants in common each control their share and usually must sign a listing that binds the whole property.
- Trusts: the trustee (per the trust document) signs for trust-owned property. Ask for a copy of the trust or a trustee certification showing signing authority.
- Estates/probate: if the property is in probate, the personal representative or executor appointed by the probate court generally signs. In many probate sales the court may have to approve the sale.
- Entities (LLCs, corporations): an authorized officer or person named in corporate documents must sign; a corporate resolution or LLC manager’s certificate may be needed.
- Power of attorney (POA): a valid, effective POA that expressly authorizes real estate transactions may allow an agent to sign, but confirm Arkansas POA formalities and whether the POA is still effective.
3. Review relevant Arkansas statutes and regulatory rules
Arkansas requires that brokers use written listing agreements and follow licensing and agency rules administered by the Arkansas Real Estate Commission. For general statutory resources, see the Arkansas Code and the commission’s site:
- Arkansas Code (search Title pages and statutes): https://www.arkleg.state.ar.us/
- Arkansas Real Estate Commission (licensing, agency disclosures, and listing obligations): https://www.arec.arkansas.gov/
Note: the specific statute or rule that applies will depend on whether the issue is licensing/agency, probate, trust law, or business entity law.
4. Get a title report and resolve clouds on title
Order a preliminary title report early. It reveals liens, judgments, mortgages, tax liens, and other encumbrances that could block a sale or require creditor consents. If a lender holds a mortgage, the lender’s payoff and possible approval requirements (for example, in short sales or deeds in lieu) must be addressed.
5. Obtain written authorization from every required signer
Before any marketing:
- Have every legal owner or their valid representative sign the written listing agreement. Brokers normally will not market without a fully executed listing.
- If an owner is represented by a POA, ask for a certified copy of the POA; confirm it is durable and that the power includes the right to list/sell real estate.
- If a trustee is signing, ask for the trust declaration or trustee certification showing authority to convey real estate.
- If an entity signs, obtain a resolution or officer certificate confirming authorization to list and sell.
6. If the property is in probate or a guardianship, follow court procedures
When the decedent’s property is still in probate, or an owner is under guardianship, you typically need the court-appointed representative to sign. Many probate sales require court approval of the sale terms and confirmation of the sale by the probate court. Consult local probate procedures or an attorney to determine whether a hearing and court order are necessary.
7. Address co-owner disputes before marketing
If co-owners disagree about listing, consider mediation, a buyout negotiation, or, as a last resort, filing a partition action in court. Arkansas courts can order partition by sale if co-owners cannot agree. Trying to market without resolving ownership disputes risks delays, litigation, and the broker’s liability.
8. Comply with HOA, local, and lender rules
If an HOA or condominium association manages the property, review the association’s declaration and resale rules. Some associations require notice or approval for sales or require specific resale documents. If a lender holds a mortgage, discuss seller obligations and payoff statements with the lender early.
9. Use clear documentation and keep records
Keep copies of deeds, title reports, POAs, trust documents, corporate resolutions, probate letters, court orders, and listing agreements. Brokers should maintain signed listing agreements and any agency disclosure forms as required by the Arkansas Real Estate Commission.
10. When to consult an attorney
Get legal help when ownership is unclear, when documents conflict, when the property is in probate or held in trust, when there are creditor claims, or when co-owners disagree. An Arkansas real estate attorney can review documents and, if needed, seek court approval for a sale or advise on resolving disputes.
Hypothetical example
Scenario: Two siblings inherit a house as tenants in common. One sibling lives out of state and signed nothing. Steps you’d take: (1) pull the deed and a title report to confirm both siblings are on title; (2) contact the out-of-state sibling, confirm whether they will sign the listing or give a POA; (3) if they refuse, explore buyout negotiations or mediation; (4) if no agreement, counsel on the option to file for partition; (5) avoid marketing until all required signatures or a court order allowing sale are in hand.
Helpful Hints
- Do not rely on verbal agreements. Always get written, signed listing agreements from everyone required to authorize a sale.
- Order a title report early — it will save time and reveal who must be involved in the listing and sale.
- If someone signs by POA, ask for a notarized, current POA and ensure it explicitly authorizes real estate transactions.
- If a trust owns the property, ask for a trustee certification rather than the entire trust to protect privacy while proving authority.
- Check for liens and mortgages on the title report; lenders may need to provide payoff quotes or approval for certain transactions like short sales.
- When in doubt, pause marketing and get a consultation with an Arkansas real estate attorney to avoid later invalidating a sale or facing litigation.
- Work with a broker who understands probate, trust, and entity sales and who will require documentation before listing.