Arkansas Real Estate License Arkansas Real Estate License Agency and Fiduciary Duties Questions and Answers 2

Question 1

Under Arkansas real estate law, which type of agency relationship is created when a broker represents both the buyer and seller in the same transaction?

Accepted Answer

Dual agency

Answer

Single agency

Answer

Designated agency

Answer

Implied agency

Question 2

Which fiduciary duty requires an Arkansas real estate agent to act in the client's best interest above their own?

Accepted Answer

Loyalty

Answer

Obedience

Answer

Disclosure

Answer

Accounting

Question 3

In Arkansas, when must a licensee provide the Agency Disclosure Form to a prospective buyer or seller?

Accepted Answer

At the first substantive contact

Answer

After the purchase agreement is signed

Answer

At closing

Answer

Within 30 days of listing

Question 4

A seller's agent in Arkansas learns that the property has a foundation defect. Which fiduciary duty requires the agent to inform the seller about potential liability if this is not disclosed to buyers?

Accepted Answer

Disclosure

Answer

Obedience

Answer

Confidentiality

Answer

Due diligence

Question 5

Under Arkansas designated agency, what happens to the managing broker's role when two agents in the same firm represent opposing parties?

Accepted Answer

The broker becomes a neutral supervisory party

Answer

The broker represents the seller only

Answer

The broker represents the buyer only

Answer

The broker withdraws from the transaction entirely

Question 6

Which of the following actions would violate an Arkansas agent's fiduciary duty of confidentiality?

Accepted Answer

Telling a buyer's agent that the seller will accept a lower price without authorization

Answer

Disclosing known material defects to a buyer

Answer

Sharing property listing details on the MLS

Answer

Providing comparable sales data to a prospective buyer