Ark. Code Ann. § 4-2-107 (2026)
Goods to be severed from realty — Recording
- A contract for the sale of minerals or the like (including oil and gas) or a structure or its materials to be removed from realty is a contract for the sale of goods within this chapter if they are to be severed by the seller but until severance a purported present sale thereof which is not effective as a transfer of an interest in land is effective only as a contract to sell.
- A contract for the sale apart from the land of growing crops or other things attached to realty and capable of severance without material harm thereto but not described in subsection (1) or of timber to be cut is a contract for the sale of goods within this chapter whether the subject matter is to be severed by the buyer or by the seller even though it forms part of the realty at the time of contracting, and the parties can by identification effect a present sale before severance.
- The provisions of this section are subject to any third party rights provided by the law relating to realty records, and the contract for sale may be executed and recorded as a document transferring an interest in land, and shall then constitute notice to third parties of the buyer's rights under the contract for sale.
History. Acts 1961, No. 185, § 2-107; 1973, No. 116, § 3; A.S.A. 1947, § 85-2-107.
Publisher's Notes. Acts 1973, No. 116, § 1, amended or reenacted the provisions of Acts 1961, No. 185, Art. 9, as amended (former Chapter 9 of this title).
Acts 1973, No. 116, § 5, provided that all transactions which were subject to the provisions of Acts 1961, No. 185, Art. 9, as amended (former Chapter 9 of this title), and which were executed prior to January 1, 1974, would be governed by Acts 1961, No. 185, Art. 9, as amended and in effect prior to January 1, 1974.
Case Notes
Mineral Interests.
Errors in earlier decree regarding royalties and conveyance of mineral interests, which decree was not appealed, could not be relitigated or corrected by subsequent purchasers of those mineral interests. Phelps v. Justiss Oil Co., 291 Ark. 538, 726 S.W.2d 662 (1987).
Statute of Frauds.
Oral contract between the company and the contractor for excavation work was for the sale of services, not goods or an interest in land, and therefore was not subject to the statute of frauds; the company promised to pay the contractor to remove the dirt; thus, the contractor was the seller, the company the buyer, and services, not dirt, were sold. Hodges v. John F. Jenkins Contr., Inc., 98 Ark. App. 125, 252 S.W.3d 152 (2007).
Timber Sales.
The UCC is made applicable to timber sales by this section. Davis v. Kolb, 263 Ark. 158, 563 S.W.2d 438 (1978).
Cited: In re Estate of Spann, 257 Ark. 857, 520 S.W.2d 286 (1975); Herrick v. Robinson, 267 Ark. 576, 595 S.W.2d 637 (1980); Williams v. J.W. Black Lumber Co., 275 Ark. 144, 628 S.W.2d 13 (1982); Montwood Corp. v. Hot Springs Theme Park Corp., 766 F.2d 359 (8th Cir. 1985).