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 buyer's agent who fails to recommend a home inspection for a property with obvious moisture stains has likely breached which duty?
Answer: Reasonable care and diligence
Reasonable care requires the agent to recommend appropriate inspections and protect the client from foreseeable risks, including obvious signs of potential defects.
Under Arkansas law, a licensee who represents neither the buyer nor seller in a transaction is best described as:
Answer: A transaction broker or facilitator
A transaction broker (facilitator) assists both parties without acting as an agent for either, owing only statutory non-agency duties.
Designated agency in Arkansas allows a broker to:
Answer: Appoint different licensees within the same firm to represent each party separately
Designated agency permits a broker to assign one affiliated licensee to represent the buyer and another to represent the seller, avoiding the conflicts of dual agency.
A listing agent who accepts an offer without presenting all competing offers to the seller has violated which core duty?
Answer: Disclosure and obedience
The agent must disclose all offers and follow the seller's lawful instructions; withholding offers violates both the duty of disclosure and obedience.
Which situation requires an Arkansas licensee to disclose a potential conflict of interest to their client?
Answer: The agent refers the client to a home inspector and receives a referral fee
Receiving a referral fee from a third party is a conflict of interest that must be disclosed to the client to fulfill the duty of loyalty.
After a listing agreement expires, an Arkansas listing agent may NOT:
Answer: Continue to market the property as if still listed
Once the listing agreement expires, the agency relationship ends and the agent has no authority to continue marketing the property.
A buyer tells their agent they will only consider houses in neighborhoods with a specific religious composition. The agent should:
Answer: Decline to honor the instruction because it violates fair housing law
Steering based on religion violates the federal Fair Housing Act; the duty of obedience only applies to lawful client instructions.