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
In Arkansas, what is required before a broker can act as a dual agent in a real estate transaction?
Answer: Written informed consent from both parties
Arkansas law mandates that both the buyer and seller must provide written informed consent before a broker may act as a dual agent.
An Arkansas buyer's agent discovers that a competing offer has been submitted on a property their client wants. What should the agent do?
Answer: Inform their buyer client about the competing offer immediately
The fiduciary duty of disclosure requires the buyer's agent to promptly inform their client of any information that could affect their decision-making.
Which fiduciary duty is an Arkansas agent fulfilling when they properly handle earnest money deposits and maintain accurate transaction records?
Answer: Accounting
The duty of accounting requires agents to properly handle all funds and documents entrusted to them and maintain accurate records of all transaction-related finances.
An Arkansas listing agent's seller client instructs the agent not to present any offers below $250,000. What should the agent do?
Answer: Present all offers regardless of the instruction
In Arkansas, agents have a legal obligation to present all offers to their clients; a seller cannot instruct an agent to withhold offers as this violates real estate law.
Under Arkansas law, which of the following best describes a transaction licensee?
Answer: A licensee who facilitates a transaction without representing either party as a client
A transaction licensee in Arkansas assists both parties in completing the transaction but does not owe fiduciary duties to either party as a client.
Which scenario would most likely create an implied agency relationship that an Arkansas licensee should be careful to avoid?
Answer: Giving a buyer specific advice on what price to offer on a property
Providing specific negotiation advice to a buyer without a formal agreement can create an implied agency relationship, exposing the licensee to fiduciary obligations they did not intend.