Arkansas Real Estate License Agency and Fiduciary Duties 5

Question 1

A buyer's agent who fails to recommend a home inspection for a property with obvious moisture stains has likely breached which duty?

Accepted Answer

Reasonable care and diligence

Answer

Reasonable care requires the agent to recommend appropriate inspections and protect the client from foreseeable risks, including obvious signs of potential defects.

Question 2

Under Arkansas law, a licensee who represents neither the buyer nor seller in a transaction is best described as:

Accepted Answer

A transaction broker or facilitator

Answer

A transaction broker (facilitator) assists both parties without acting as an agent for either, owing only statutory non-agency duties.

Question 3

Designated agency in Arkansas allows a broker to:

Accepted Answer

Appoint different licensees within the same firm to represent each party separately

Answer

Designated agency permits a broker to assign one affiliated licensee to represent the buyer and another to represent the seller, avoiding the conflicts of dual agency.

Question 4

A listing agent who accepts an offer without presenting all competing offers to the seller has violated which core duty?

Accepted Answer

Disclosure and obedience

Answer

The agent must disclose all offers and follow the seller's lawful instructions; withholding offers violates both the duty of disclosure and obedience.

Question 5

Which situation requires an Arkansas licensee to disclose a potential conflict of interest to their client?

Accepted Answer

The agent refers the client to a home inspector and receives a referral fee

Answer

Receiving a referral fee from a third party is a conflict of interest that must be disclosed to the client to fulfill the duty of loyalty.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency and Fiduciary Duties 5