Law & Justice
Arkansas Appeals Court Affirms Buyers’ Right to Complete 111‑Acre Purchase
In a case involving a 111‑acre parcel in Magazine, Arkansas, the Arkansas Court of Appeals upheld the right of Destin and Jennifer Clark to finish the purchase after the sellers, George and Sandra Thomas, refused to provide the signed payoff documentation needed for closing. The court affirmed the Logan County Circuit Court’s order for specific performance and the award of $17,500 in attorney’s fees and costs to the buyers.
The dispute began in 2015 when the Clarks entered into an owner‑financing agreement with the Thomases, agreeing to pay $2,700 a month. After falling behind, they were told to leave but later asked to restart the arrangement. They handed over a truck and six or seven cows to bring the balance up to date and resumed monthly payments of $2,700. They defaulted again, and on March 3 2020 a new “Rent To Own Contract” was signed. The new contract set monthly payments at $1,900 and listed an outstanding balance of $103,852.91, allowing advance payments without penalty.
By 2021 the Thomases urged the Clarks to clear the remaining debt. The Clarks intended to sell the Arkansas acreage to fund a purchase in Kentucky. In February 2022 they received a $240,700 offer, and in April 2022 a $250,000 offer. Sandra Thomas told the Clarks that the payoff amount was $73,410 as of April 15, but she did not provide a signed document. The Clarks sent cashier’s checks and late fees, but the envelope was returned as refused 46 days after the due date. Sandra later issued a notice requiring the Clarks to vacate the property.
The Clarks sued for enforcement of the agreement and the right to complete the purchase. The circuit court found that the 2020 contract created an equitable mortgage and that the Clarks had acquired an equitable interest. It also held that Sandra had breached the agreement by refusing to provide the signed payoff figure after the buyers sought to make an early payment.
On appeal, Sandra argued that the contract was only executory and that the Clarks had no equitable ownership until all conditions were met. The appeals court rejected this argument, noting that Arkansas law allows courts to consider parties’ conduct in addition to the document’s wording. It concluded that the trial judge had not clearly erred in ordering specific performance. Under the order, Sandra must provide a signed payoff amount calculated from $73,410, with interest at six percent per annum from April 15 2022. The Clarks must arrange closing within 30 days of receiving it, and Sandra must accept the final payment and execute the deed.
The Arkansas Court of Appeals affirmed the lower court’s decision, including the $17,500 attorney’s fee award, and left the order for specific performance intact. The ruling allows the Clarks to proceed with the purchase under the terms set by the circuit court and confirms that their long‑term payments gave them an equitable interest in the property, despite the seller’s attempt to terminate the arrangement.