§ 18-48-802 - Definitions. - Arkansas Statutes

18-48-802. Definitions.

As used in this subchapter:

(1) (A) "Base rent" means the rent designated in a lease as base rent, or a similar term, for the possession and use of commercial real estate.

(B) "Base rent" does not include separate payments made by tenants for insurance, taxes, utilities, or other expenses;

(2) (A) "Commercial real estate" means:

(i) A fee simple, freehold, leasehold, or other title, interest, or possessory estate in real property located in the State of Arkansas; and

(ii) Real property if the property is identified as commercial real estate in the representation agreement.

(B) "Commercial real estate" does not mean an interest in real property that is:

(i) Improved with one (1) single-family residential unit or one (1) multifamily structure with four (4) or fewer residential units; or

(ii) Improved with single-family residential units such as condominiums, townhouses, timeshares, or houses in a subdivision that may be sold, leased, or otherwise disposed of on a unit-by-unit basis;

(3) "Days" means calendar days;

(4) "Disposition" means a voluntary transfer or conveyance of commercial real estate;

(5) "Escrow closing agent" means the person or entity that receives documents and funds for recording and disbursement in the completion of a transaction for the disposition of commercial real estate;

(6) "Lease" means a written agreement affecting commercial real estate that creates a landlord and tenant relationship under which the holder of a fee simple interest or possessory estate in commercial real estate permits another to possess the commercial real estate for the period of time contained in the lease;

(7) "Licensee" has the same meaning as in 17-42-103;

(8) (A) "Net rental proceeds" means the base rent paid by the tenant under a lease less any amounts currently due under the terms of a lien that has priority over a lien created under this subchapter.

(B) Net rental proceeds are personal property to which a lien created by this subchapter attaches;

(9) "Owner" means a person or entity that is vested in record fee title or a possessory estate in commercial real estate;

(10) (A) "Owner's net proceeds" means the gross sales proceeds from the disposition of commercial real estate described in a notice of claim of lien against proceeds under this subchapter less:

(i) Amounts necessary to pay all encumbrances and liens that have priority over the lien created by this subchapter other than those permitted to remain by the buyer of the commercial real estate; and

(ii) Owner's closing costs, such as real estate excise tax, title insurance premiums, real estate tax and assessment prorations, and escrow fees required to be paid by the owner under an agreement with the buyer of the commercial real estate.

(B) "Owner's net proceeds" includes any gross sales proceeds that are:

(i) Held by a third party for purposes of completing an exchange of real estate which is deferred from federal income tax under Section 1031 of the Internal Revenue Code of 1986, as it existed on January 1, 2005, but are not used later for that purpose; and

(ii) Personal property to which a lien created by this subchapter attaches;

(11) "Real property" means one (1) or more parcels or tracts of land, including an appurtenance or improvement; and

(12) "Representation agreement" means a commercial real estate agreement between a licensee and an owner under which the owner agrees to pay a licensee a fee, commission, or other consideration upon:

(A) Either the disposition or lease of commercial real estate; or

(B) Entering into an agreement for the disposition or lease of commercial real estate.