Arkansas Real Estate License Agency Relationships and Disclosures 4

Question 1

Under Arkansas law, which of the following would TERMINATE an agency relationship?

Accepted Answer

Expiration of the listing or representation agreement

Answer

An agency relationship automatically terminates when the agreed-upon contract period expires, along with other events like completion of the purpose, mutual agreement, or death.

Question 2

A buyer tells their agent they want to buy a home but won't sign a representation agreement. The agent shows them three homes. What type of agency likely exists?

Accepted Answer

Implied buyer's agency created through the agent's conduct

Answer

When an agent provides buyer services without a formal agreement, implied agency can be created through the agent's conduct and the buyer's reasonable belief of representation.

Question 3

In Arkansas, 'informed consent' for dual agency means the parties must:

Accepted Answer

Sign a written consent acknowledging the limits of dual agency representation before proceeding

Answer

Arkansas requires written informed consent acknowledging the limitations of dual agency — particularly the agent's inability to fully advocate for either party — before the relationship continues.

Question 4

A seller's agent has a duty of 'reasonable care and diligence.' This means the agent must:

Accepted Answer

Use professional skill and effort to advance the seller's interests in the transaction

Answer

Reasonable care and diligence requires the agent to apply professional knowledge and effort to serve the client's real estate needs competently.

Question 5

Which of the following is an example of a material fact that must be disclosed in Arkansas?

Accepted Answer

A structural defect in the foundation discovered during a prior inspection

Answer

Material facts are those that would affect a reasonable buyer's decision, and structural defects clearly meet this standard and must be disclosed.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Agency Relationships and Disclosures 4