FREE Arkansas Real Estate License Agency Relationships and Disclosures Questions and Answers

Question 1

An agent with ABC Realty has a listing agreement with a seller.
A buyer, who is not represented by any agent, becomes interested in the property.
The agent from ABC Realty assists this buyer in preparing an offer.
Which of the following statements is TRUE regarding the agent's duties?

Accepted Answer

The agent's primary duty is to the seller, and they must disclose to the buyer that they represent the seller.

Answer

The agent must act as a dual agent, representing both parties equally.

Answer

The agent now represents the buyer because they are helping them prepare the offer.

Answer

The agent is acting as a transaction broker and does not owe fiduciary duties to either party.

Question 2

A real estate firm practices designated agency. The firm's principal broker designates one affiliated licensee to represent the buyer and another to represent the seller in the same transaction. In this scenario, what is the agency role of the principal broker?

Accepted Answer

The principal broker is considered a dual agent.

Answer

The principal broker represents only the seller.

Answer

The principal broker represents only the buyer.

Answer

The principal broker is a subagent of both parties.

Question 3

Under what circumstances is dual agency permissible in an Arkansas real estate transaction?

Accepted Answer

It is permissible with prior written consent from both the buyer and the seller.

Answer

It is permissible as long as the agent provides verbal disclosure to both parties.

Answer

It is never permissible in Arkansas due to inherent conflicts of interest.

Answer

It is permissible only if the buyer and seller are related.

Question 4

A buyer's agent in Arkansas has a duty to keep certain information confidential. Which of the following would the agent be required to disclose to the seller or seller's agent?

Accepted Answer

The fact that the buyer's financing has fallen through.

Answer

The buyer's willingness to pay more than their initial offer price.

Answer

The buyer's motivation for purchasing a new home.

Answer

The buyer's negotiating strategy.

Question 5

Which of the following events would automatically terminate an agency relationship between a seller and a principal broker by operation of law in Arkansas?

Accepted Answer

The principal broker's license expires.

Answer

The seller receives an offer that meets all terms of the listing agreement.

Answer

The listing agent takes a two-week vacation.

Answer

The seller rejects a full-price offer from a qualified buyer.

Question 6

An agent working for a listing broker shows a property to a prospective buyer. This agent is not the listing agent and does not have a buyer representation agreement with the prospective buyer. In Arkansas, this agent is generally considered to be a:

Accepted Answer

Subagent of the seller.

Answer

Designated agent for the buyer.

Answer

Transaction broker.

Answer

Dual agent.

An agent with ABC Realty has a listing agreement with a seller.A buyer, who is not represented by any agent, becomes interested in the property.The agent from ABC Realty assists this buyer in preparing an offer.Which of the following statements is TRUE regarding the agent's duties?

An agent with ABC Realty has a listing agreement with a seller.
A buyer, who is not represented by any agent, becomes interested in the property.
The agent from ABC Realty assists this buyer in preparing an offer.
Which of the following statements is TRUE regarding the agent's duties?