Arkansas Real Estate Salesperson Exam — All Questions

Before a consumer discloses confidential information, an Arkansas licensee is expected to:

• a.Record a memorandum of the listing
• b.Obtain a preapproval letter
• c.Disclose whom the licensee represents in the transaction✓
• d.Collect a nonrefundable retainer

Arkansas requires licensees to disclose the agency relationship, identifying whether the licensee represents the seller, the buyer, both, or neither, so the consumer understands the relationship before revealing confidential information. Timely agency disclosure is a core consumer-protection requirement.

A licensee's firm may represent both the buyer and the seller in the same Arkansas transaction only when:

• a.The principal broker approves after closing
• b.The sale price is below a set threshold
• c.The Commission grants a waiver
• d.Both parties give informed written consent✓

Dual agency is permitted only with the informed written consent of both parties. A dual agent must remain neutral on price and terms and may not reveal one party's confidential negotiating information to the other, because dual agency limits the advocacy each client would otherwise receive.

An Arkansas licensee acting solely as agent for a buyer must disclose that relationship to the seller or the seller's agent:

• a.Before the buyer submits a written offer
• b.Before showing the seller's property to the buyer
• c.At the first contact with the seller, lessor, or their agent✓
• d.Within three days after the offer and acceptance is signed

A buyer's or lessee's agent must disclose the agency relationship to a potential seller or lessor, or to their licensed agent, at the first contact with the seller, the lessor, or the agent of either. Cite: 17 CAR Sec. 220-802(a)(1)(B).

Arkansas agency disclosure may be made orally at first, but in all cases it must be reduced to writing and made:

• a.Within seventy-two hours after the initial oral disclosure is given
• b.At the time the agency or listing contract is signed by the client
• c.Before the licensee accepts earnest money from the buyer
• d.Before the other party signs any document related to the transaction✓

Disclosure must be in writing and may initially be made orally, but in all cases it must be made before the buyer or lessee, or the seller or lessor, signs any document related to the transaction, such as an offer or lease. Evidence of the disclosure must be kept. Cite: 17 CAR Sec. 220-801(b), (c); 17 CAR Sec. 220-802(b), (c).

In an Arkansas dual agency, the written consent of all parties must be obtained:

• a.At any time before the transaction closes
• b.Prior to or at the time the contract is executed✓
• c.Within ten days after the offer is accepted
• d.Only if the licensee is paid by both parties

A licensee representing both sides must make the disclosure required of seller and buyer agents, and all parties must have given written consent to the dual representation prior to or at the time of execution of the agency, listing, property management, lease, rental, or offer and acceptance contract. Cite: 17 CAR Sec. 220-803(a).

An Arkansas licensee may accept compensation from more than one party to a transaction only with:

• a.Full written disclosure to all parties to the transaction✓
• b.The written consent of the licensee's principal broker
• c.Prior written approval from the Commission
• d.Oral notice to the party the licensee represents

A licensee shall not accept compensation from more than one party without full written disclosure to all parties to the transaction, and may not accept consideration from any source in connection with the property without full written disclosure to the party represented. Cite: 17 CAR Sec. 220-805(c), (d).

Every written agency agreement an Arkansas licensee uses, including a listing or buyer representation agreement, must contain:

• a.A statement of the agreed commission rate
• b.The signature of the supervising principal broker
• c.A specific determinable duration or expiration date✓
• d.A notice of the right to cancel within three days

A licensee must put a specific determinable duration or a specific expiration date on all written agency agreements or contracts and on any extensions of them, including listing and buyer representation agreements. Cite: 17 CAR Sec. 220-1002.

Before taking a listing on property an Arkansas licensee believes is already subject to an exclusive agreement with another firm, the licensee must first:

• a.Obtain a signed written release of the client from that principal broker
• b.Wait until the existing exclusive agreement expires by its own terms
• c.Report the competing agreement to the Commission
• d.Communicate with the other principal broker to confirm it exists✓

A licensee shall not knowingly enter into an agency agreement where there is reason to believe an exclusive agreement is in force without first communicating with the other principal broker to confirm it; if one is in force, the licensee must notify the client in writing to consult an attorney about liability for two commissions. Cite: 17 CAR Sec. 220-1012(b)(1), (2).