2009 Changes to Real Estate Laws

October 1, 2009

As promised in my July 27th Blog, I am writing to provide you with more information on changes to the real estate laws enacted by the 2009 Arkansas General Assembly. The laws went into effect on August 1, 2009. Below, I will give you a short summary of the law and provide you with a link to the Arkansas legislature website so that you can download a full version of the Act.

1. Act 274 - provides that the sales tax applies to the proceeds from from renting, leasing,
or otherwise furnishing hotel, motel, house, cabin, bed and breakfast, campground, or short-term condominium, or other similar rental accommodations for sleeping, meeting, or party room facilities for profit in such city or town, but such accommodations shall not include the rental or lease of such accommodations for periods of thirty (30) days or more. We interpret this to mean that the sales tax would be assessed on receipts for the rental of apartments, condos or corporate housing for less than 30 days.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act274.pdf


2. Act 454 - amends numerous sections of the Mechanics and Materialmen's statutes. The changes are too numerous for me to adequately write about in this blog. Needless to say, you need to consult with your attorney if you are faced with an issue regarding the mechanics and materialmen's lien laws.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act454.pdf

3. Act 464 - provides a method to conduct a civil eviction for tenants that engage in gambling, alcohol and prostitution activities. These statutes were revoked by the 2007 Arkansas Residential Landlord Tenant Act and were re-enacted by the 2009 General Assembly. The eviction procedures tract the unlawful detainer procedures however you do not have to give any advanced notice before filing a lawsuit.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act464.pdf

4. Act 707 - provides for reasonable restrictions on youthful consumers who utilize tanning facilities and requires recordkeeping at tanning facilities. The Act specifically applies to apartments and condominiums as well as health clubs. A tanning facility must obtain the signature of a parent/guardian of a person under the age of 18 on a warning statement. The warning statement must contain language specified in the statute.


http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act707.pdf

5. Act 976 - provides for criminal liability for a social host who knowingly serves alcohol to persons under the age of twenty-one on his or her property. It would appear that this law does not apply to landlords or their agents unless the consumption of alcohol occurs in the individual unit in which the owner or agent resides. You should consult with your attorney if there is any question about the application of this law to your property or situation.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act976.pdf


6. Act 1455 - provides for the Arkansas Fair Debt Collection Practices Act. This Act has broad application 17-24-501 (5) (A) defines person considered to be a debt collector and subject to this Act. Section 17-24-501 (5)(D) names persons who are not considered debt collectors. These person include officers or employees of a creditor that collect in the name of the creditor or a person that is collecting a debt that is incidental to a fiduciary obligation or escrow arrangement. The question may arise as to who is the creditor and who is an employee of the creditor. You should consult with your attorney regarding any questions that you may have about the application of these laws to your situation.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act1455.pdf

7. Act 1467 - provides for a system to license and qualify mold investigators and inspectors.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act1467.pdf

8. Act 311 - provides for changes and clarifications to the Arkansas Residential Landlord Tenant Act. The Act was designed to fix certain procedural and technical problems with the Act that related primarily to the new eviction procedures provided for in the Act. Act 311 provides that jurisdiction for the new civil eviction procedure we call an affidavit of eviction is solely in district court and not circuit court. You can still conduct an unlawful detainer in circuit court.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act311.pdf

9. Act 482 - makes other technice changes and clarifications to the Arkansas Residential Landlord Tenant Act but does not make any substantive changes to the Act.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act482.pdf

10. Act 559 - amends the security deposit laws. Give the landlord 60 days from the date the tenant vacates the premises before the security deposit must be returned or a written disposition statement is provided.

http://www.arkleg.state.ar.us/assembly/2009/R/Acts/Act559.pdf

If you have any question concerning these changes, please feel free to email me.

David E. Simmons

Changes To Eviction Procedures

July 27, 2009

Changes To Civil Evictions For Residential Rental Property Clients

Beginning August 1, 2009, we will start using the unlawful detainer procedure again to conduct evictions in Pulaski County. For all clients that have residential rental property outside Pulaski County, your eviction procedures will stay the same for now and we will continue to conduct unlawful detainer civil eviction.

For our clients in Pulaski County, instead of giving the tenants 5 days notice for non-payment of rent, you can now give them 3 days notice again. Also, for non-rent violations of the lease, you can give the tenant a 3 day notice to vacate rather than a 14 day notice.

In the past two years, we have been using the "Affidavit of Eviction" proceedings in Pulaski County that were authorized by the 2007 Arkansas Residential Landlord Tenant Act (Act 1004). Outside of Pulaski County we have always used the unlawful detainer procedure. Act 1004 originally was intended to allow the district courts to hear these cases which would reduce costs. However, Act 1004 had several procedural problems so the Arkansas Supreme Court never granted the district court jurisdiction to hear these eviction cases.

The 2009 Arkansas General Assembly passed laws that go into effect August 1st that changed the eviction laws again. Act 311 of the 2009 Arkansas General Assembly was written to provide changes that would finally allow district courts to hear affidavit of eviction cases. Act 311 was supposed to have fixed the procedural problems of Act 1004 but actually new created problems.

As of now, the district courts do not have the legal authority (jurisdiction) to hear affidavit of eviction cases and the circuit courts no longer have authority to hear the affidavit of eviction cases. Until the Arkansas Supreme Court makes changes in the way the district courts in Arkansas operate and grants them jurisdiction, we will have to go back to filing unlawful detainer evictions. Once the Arkansas Supreme Court grants the district courts jurisdiction, then we can start filing affidavit of eviction cases again. According to my sources, the Arkansas Supreme Court will not meet again until late September, so this is the earliest that the district courts could be granted jurisdiction to hear the affidavit of eviction cases.

The filing fees for unlawful detainers will go from $140 to $165. All other charges will remain the same.

In early August, I will post another blog that gives an overview of all of the new laws that affect the real estate industry. If you have any questions, please call my office at 501-374-5417 or email me at desimmonsar@netscape.net.

Finally, I will be out the office on vacation from July 31, 2009 to August 7, 2009. If you need anything, please call my office number and leave a message. Either Thelma Gunn or I will return your call within 24 hours and do our best to take care of your legal needs. We should still be able to file any evictions sent to us even while I am out of the office. Thank you for your patience and as always thank you for your business.