Agency and Fiduciary Duties Flashcards
7 cards from real Arkansas Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Agency and Fiduciary Duties flashcards as text
A customer (non-client) is entitled to which of the following from an Arkansas licensee?
Answer: Honest and fair dealing and disclosure of material facts
Customers receive statutory duties of honesty, fair dealing, and material fact disclosure, but not the full fiduciary duties owed to clients.
Under the duty of accounting in Arkansas, a buyer's agent must:
Answer: Safeguard and account for all funds and property entrusted by the client
The duty of accounting requires the agent to properly handle and account for money or property received on behalf of the client.
A licensee working as a transaction broker in Arkansas owes which level of duty to the parties?
Answer: Limited non-agency duties of fairness and disclosure
A transaction broker (non-agent facilitator) owes limited statutory duties of honesty, fair dealing, and material fact disclosure — not full fiduciary duties.
Agent Torres represents the seller. The buyer asks Torres to write up an offer below list price. Torres should:
Answer: Write the offer and present it faithfully to the seller
An agent must present all offers to the client promptly regardless of price; the duty of obedience requires following lawful client instructions, not agent preferences.
When does an agency relationship in Arkansas typically terminate?
Answer: When the listing period expires, both parties complete the transaction, or by mutual consent
Agency terminates upon expiration of the agreement, completion of the transaction, mutual consent, death of either party, or other legal events.
A buyer's agent who uses confidential information learned from the buyer — such as the maximum price they'll pay — to benefit themselves or a third party has committed:
Answer: A breach of the fiduciary duty of loyalty
Using a client's confidential information for personal gain or to benefit others is a direct breach of the duty of loyalty.
In Arkansas, which document most commonly creates an express buyer agency relationship?
Answer: The buyer representation agreement
A buyer representation agreement is the written contract that expressly creates an agency relationship between the buyer and the licensee.