Arkansas Real Estate License Arkansas Real Estate License Agency and Fiduciary Duties Questions and Answers 2

Question 1

Under Arkansas real estate law, which type of agency relationship is created when a broker represents both the buyer and seller in the same transaction?

Accepted Answer

Dual agency

Answer

Dual agency occurs when one broker represents both the buyer and seller in the same transaction, which requires informed written consent in Arkansas.

Question 2

Which fiduciary duty requires an Arkansas real estate agent to act in the client's best interest above their own?

Accepted Answer

Loyalty

Answer

The duty of loyalty obligates an agent to place the client's interests above all others, including the agent's own interests.

Question 3

In Arkansas, when must a licensee provide the Agency Disclosure Form to a prospective buyer or seller?

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 or seller.

Question 4

A seller's agent in Arkansas learns that the property has a foundation defect. Which fiduciary duty requires the agent to inform the seller about potential liability if this is not disclosed to buyers?

Accepted Answer

Disclosure

Answer

The duty of disclosure requires the agent to inform their client of all material facts and information that could affect the transaction.

Question 5

Under Arkansas designated agency, what happens to the managing broker's role when two agents in the same firm represent opposing parties?

Accepted Answer

The broker becomes a neutral supervisory party

Answer

In designated agency, the managing broker assumes a neutral supervisory role rather than advocating for either party in the transaction.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Arkansas Real Estate License Agency and Fiduciary Duties Questions and Answers 2