Arkansas Real Estate License Agency and Fiduciary Duties 2

Question 1

A buyer's agent who secretly accepts a referral fee from the seller's lender without disclosing it to the buyer has violated which fiduciary duty?

Accepted Answer

Loyalty

Answer

Loyalty requires the agent to place the client's interests above all others, including undisclosed financial benefits received from third parties.

Question 2

Under Arkansas law, when must a licensee provide the Disclosure of Agency form to a prospective buyer?

Accepted Answer

At the first substantive contact

Answer

Arkansas requires agency disclosure at the first substantive contact with the prospective buyer, not at the offer stage.

Question 3

A seller's agent learns that the seller is going through a divorce and must sell quickly. Sharing this information with the buyer would violate which duty?

Accepted Answer

Confidentiality

Answer

Confidentiality requires the listing agent to protect information the seller has not authorized to be shared, including personal circumstances affecting motivation to sell.

Question 4

An Arkansas licensee acting as a dual agent receives written consent from both parties. Which of the following activities is the dual agent still prohibited from doing?

Accepted Answer

Disclosing the seller's minimum acceptable price to the buyer

Answer

Even with dual agency consent, the agent cannot reveal the seller's bottom-line price or the buyer's maximum offer, as this would harm one party for the benefit of the other.

Question 5

Which scenario best describes an implied agency relationship in Arkansas real estate?

Accepted Answer

A buyer treats a licensee as their agent without a written agreement, and the licensee acts accordingly

Answer

Implied agency arises from the conduct of the parties rather than a written contract, which is why Arkansas strongly encourages written agency agreements.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency and Fiduciary Duties 2