Agency Relationships and Disclosures 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 Relationships and Disclosures flashcards as text
An Arkansas real estate agent working with a buyer who is also a personal friend. The agent's fiduciary duty requires them to:
Answer: Provide the same professional loyalty and care as any other client
Personal relationships do not change the agent's fiduciary duties — all clients are entitled to the same standard of professional loyalty, care, and representation.
In a designated agency transaction in Arkansas, what information must the broker keep confidential between the designated buyer's agent and seller's agent?
Answer: The motivations and financial constraints of the respective clients
In designated agency, each agent protects their own client's confidential information, including motivations and financial capacity, from the other designated agent.
Under Arkansas law, which agency relationship requires the HIGHEST level of fiduciary duty?
Answer: Buyer or seller agency (full representation)
Full buyer or seller agency carries complete fiduciary duties (loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting), the highest standard in Arkansas real estate law.
A seller signs a listing agreement with Broker A but then approaches Broker B to help find a buyer directly. What is Broker B's agency status?
Answer: Broker B may represent the buyer and becomes the buyer's agent, owing duties to the buyer
Broker B can represent the buyer in a transaction where Broker A represents the seller; Broker B owes fiduciary duties to the buyer-client in this scenario.
Arkansas requires that agency disclosure forms be:
Answer: Retained by the brokerage as part of transaction records
Arkansas brokerages must retain agency disclosure forms as part of their required transaction records, which the Commission may inspect during audits.
A listing agent's seller-client instructs the agent not to tell buyers about a neighborhood noise issue from a nearby highway. The agent should:
Answer: Disclose the noise issue anyway since it is a material fact affecting value
A highway noise issue is a material fact that agents must disclose despite client instructions, because agents cannot follow instructions requiring them to deceive buyers.
In Arkansas, which of the following statements about buyer representation agreements is TRUE?
Answer: They establish the scope, duration, and compensation terms of the buyer's agency relationship
A buyer representation agreement is a legally binding contract that defines the agent's duties, the duration of representation, and how the agent will be compensated.