Arkansas Real Estate License Agency Relationships and Disclosures 2

Question 1

In Arkansas, when must a licensee provide the 'Working With Real Estate Agents' disclosure form to a buyer?

Accepted Answer

At the first substantive contact

Answer

Arkansas law requires licensees to provide the agency disclosure form at the first substantive contact with a prospective buyer.

Question 2

A seller's agent learns that the seller is going through a divorce and must sell quickly. What is the agent's duty regarding this information?

Accepted Answer

Keep it confidential as it could weaken the seller's negotiating position

Answer

A seller's agent has a fiduciary duty of confidentiality to the seller and must not disclose information that would harm the seller's bargaining position.

Question 3

Under Arkansas law, a dual agency occurs when:

Accepted Answer

One brokerage represents both the buyer and seller in the same transaction

Answer

Dual agency in Arkansas occurs when the same brokerage represents both the buyer and the seller in a single real estate transaction.

Question 4

What is a 'designated agency' arrangement in Arkansas?

Accepted Answer

A broker assigns one licensee to represent the buyer and a different licensee to represent the seller within the same firm

Answer

Designated agency allows a broker to designate different agents within the same firm to represent the buyer and seller, avoiding dual agency conflicts.

Question 5

Which of the following best describes a 'transaction broker' in Arkansas?

Accepted Answer

A licensee who facilitates a transaction without representing either party as a fiduciary

Answer

A transaction broker in Arkansas assists both parties in completing a transaction without acting as a fiduciary agent for either side.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency Relationships and Disclosures 2