Chapter 24 : Horizontal Property Regimes

• Library: Standards for Examination of Real Estate Titles in Arkansas (2021 Ed.)

CHAPTER 24: HORIZONTAL PROPERTY REGIMES

Standard 24.1 General

The Horizontal Property Act³⁴⁸ is Arkansas's version of a condominium act. What are often referred to as condominiums in other states are called horizontal property regimes (or HPRs) in Arkansas, though the terminology is synonymous.

Any building can be converted into an HPR at any time by filing a master deed.³⁴⁹ The owners do not have to obtain the permission of the local government, which is required for most other types of subdivisions. Once an HPR is formed, the individual units (called "apartments" in the statute) may be conveyed, mortgaged, and in all other ways treated as separate lots of property.³⁵⁰

An apartment owner has exclusive ownership of his or her apartment and an undivided interest in the common elements with all other unit owners.³⁵¹ Apartments may be held by more than one person using any method of co-ownership, including without limitation as joint tenants, tenants in common, or as tenants by the entirety.³⁵²

Standard 24.2 Master Deed Requirements

A landowner must file a master deed to form an HPR. The master deed is required to include the following elements:

1. The description of the land and the building, expressing their respective areas;³⁵³
2. The general description and number of each apartment, expressing its area, location, and any other data necessary for its identification;³⁵⁴
3. The description of the general common elements of the building and, in proper cases, of the limited common elements restricted to a given number of apartments, expressing which are those apartments;³⁵⁵
4. The value of the property and of each apartment and, according to these basic values, the percentage appertaining to the co-owners in the expenses of, and rights in, the elements held in common;³⁵⁶ and
5. A full and exact copy of the plans, certified by an Arkansas-licensed engineer or architect, of any existing building on the property or the plans for the building or buildings to be constructed on the property with the following required properties (described in detail with words and figures):

a. The dimensions, area, and location of each apartment;
b. A letter or number designation for each apartment;
c. The location of all general common elements; and
d. The location of all limited common elements.³⁵⁷

A title examiner should check the master deed of any HPR to verify that these elements are all present. If an element is missing, the title examiner should require curative work before insuring title.

Once the HPR is formed, the legal description for each apartment becomes the letter or number assigned to the apartment in the master deed followed by the words "in [Name of HPR] Horizontal Property Regime."³⁵⁸ Any conveyance of an apartment automatically includes an undivided interest in the common elements appertaining to the apartment.³⁵⁹

Standard 24.3 Bylaws

The regime must be...