Arkansas Real Estate License Agency Relationships and Disclosures 3

Question 1

Under Arkansas agency law, which duty does a seller's agent NOT owe to an unrepresented buyer?

Accepted Answer

Loyalty and advocacy

Answer

Loyalty and advocacy are fiduciary duties owed only to the agent's own client; an unrepresented buyer receives honest and fair treatment but not fiduciary representation.

Question 2

An agent acting as a seller's subagent owes primary fiduciary duties to:

Accepted Answer

The seller (the listing broker's principal)

Answer

A subagent works through the cooperating broker but ultimately represents and owes fiduciary duties to the seller, the original principal.

Question 3

In Arkansas, a listing agent discovers the seller has not disclosed a leaking roof. What should the agent do?

Accepted Answer

Advise the seller to disclose and refuse to continue if they won't

Answer

Arkansas agents must advise their clients to disclose material defects and may withdraw from the transaction if the client refuses to comply with legal requirements.

Question 4

When does an implied agency relationship most commonly arise in Arkansas real estate?

Accepted Answer

When a licensee acts as an agent without a formal agreement and the client reasonably believes representation exists

Answer

Implied agency arises through conduct and circumstances rather than a written agreement, creating agency obligations even without formal documentation.

Question 5

A buyer's agent agrees to receive a lower commission if the buyer purchases a property the agent also owns. This situation requires:

Accepted Answer

Written disclosure of the agent's ownership interest and informed consent from the buyer

Answer

When an agent has a personal financial interest in a transaction, they must disclose this conflict in writing and obtain the client's informed consent.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency Relationships and Disclosures 3