Arkansas Real Estate License Agency and Fiduciary Duties 3

Question 1

A customer (non-client) is entitled to which of the following from an Arkansas licensee?

Accepted Answer

Honest and fair dealing and disclosure of material facts

Answer

Customers receive statutory duties of honesty, fair dealing, and material fact disclosure, but not the full fiduciary duties owed to clients.

Question 2

Under the duty of accounting in Arkansas, a buyer's agent must:

Accepted Answer

Safeguard and account for all funds and property entrusted by the client

Answer

The duty of accounting requires the agent to properly handle and account for money or property received on behalf of the client.

Question 3

A licensee working as a transaction broker in Arkansas owes which level of duty to the parties?

Accepted Answer

Limited non-agency duties of fairness and disclosure

Answer

A transaction broker (non-agent facilitator) owes limited statutory duties of honesty, fair dealing, and material fact disclosure — not full fiduciary duties.

Question 4

Agent Torres represents the seller. The buyer asks Torres to write up an offer below list price. Torres should:

Accepted Answer

Write the offer and present it faithfully to the seller

Answer

An agent must present all offers to the client promptly regardless of price; the duty of obedience requires following lawful client instructions, not agent preferences.

Question 5

When does an agency relationship in Arkansas typically terminate?

Accepted Answer

When the listing period expires, both parties complete the transaction, or by mutual consent

Answer

Agency terminates upon expiration of the agreement, completion of the transaction, mutual consent, death of either party, or other legal events.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency and Fiduciary Duties 3