Arkansas Real Estate License FREE Arkansas Real Estate License Agency Relationships and Disclosures Questions and Answers 2

Question 1

Under Arkansas law, when must a real estate licensee provide a written agency disclosure to a prospective client?

Accepted Answer

At the first substantive contact

Answer

Arkansas requires licensees to provide written agency disclosure at the first substantive contact with a prospective buyer or seller.

Question 2

In Arkansas, what type of agency relationship allows a broker to represent both the buyer and seller in the same transaction?

Accepted Answer

Dual agency

Answer

Dual agency occurs when one broker represents both parties, which is permitted in Arkansas with informed written consent from both parties.

Question 3

Which document must an Arkansas licensee use to confirm the type of agency relationship with a client?

Accepted Answer

Agency confirmation statement

Answer

An agency confirmation statement is required to formally confirm the agency relationship between the licensee and the client.

Question 4

What is the primary fiduciary duty an Arkansas real estate agent owes to their client?

Accepted Answer

Loyalty, placing the client's interests above their own

Answer

Loyalty is a primary fiduciary duty requiring the agent to place the client's interests above their own or those of third parties.

Question 5

In Arkansas, if a seller's agent discovers a material defect in the property, what is their disclosure obligation?

Accepted Answer

Disclose to all parties regardless of whom they represent

Answer

Known material defects must be disclosed to all parties in the transaction, regardless of which party the agent represents.

Arkansas Real Estate License Practice Test