Arkansas Real Estate License Agency and Fiduciary Duties Questions and Answers Flashcards
6 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 6 Arkansas Real Estate License Agency and Fiduciary Duties Questions and Answers flashcards as text
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?
Answer: Dual agency
Dual agency occurs when one broker represents both the buyer and seller in the same transaction, which requires informed written consent in Arkansas.
Which fiduciary duty requires an Arkansas real estate agent to act in the client's best interest above their own?
Answer: Loyalty
The duty of loyalty obligates an agent to place the client's interests above all others, including the agent's own interests.
In Arkansas, when must a licensee provide the Agency Disclosure Form to a prospective buyer or seller?
Answer: At the first substantive contact
Arkansas law requires licensees to provide the Agency Disclosure Form at the first substantive contact with a prospective buyer or seller.
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?
Answer: Disclosure
The duty of disclosure requires the agent to inform their client of all material facts and information that could affect the transaction.
Under Arkansas designated agency, what happens to the managing broker's role when two agents in the same firm represent opposing parties?
Answer: The broker becomes a neutral supervisory party
In designated agency, the managing broker assumes a neutral supervisory role rather than advocating for either party in the transaction.
Which of the following actions would violate an Arkansas agent's fiduciary duty of confidentiality?
Answer: Telling a buyer's agent that the seller will accept a lower price without authorization
Revealing the seller's willingness to accept a lower price without authorization is a breach of the confidentiality duty owed to the client.