Arkansas Real Estate Broker Exam — All Questions

Under Arkansas agency rules, when must a licensee disclose the agency relationship to a consumer?

• a.Only at closing
• b.Only if the consumer asks
• c.Before or at the time the licensee provides a written agency disclosure and the consumer enters an agency relationship, so the consumer knows whom the licensee represents✓
• d.Within 60 days after the sale

Arkansas requires timely written agency disclosure so the consumer understands whether the licensee represents the seller, the buyer, or is acting in another capacity before agency is established. Disclosing early, rather than at closing or only on request, lets the consumer make an informed decision about representation.

In Arkansas, funds a brokerage collects while managing rental property for an owner must be:

• a.Deposited in the firm's trust account and accounted for to the owner under the principal broker's responsibility✓
• b.Kept in the managing salesperson's personal account
• c.Paid immediately to the principal broker as personal income
• d.Held in cash by the tenant

Rents, security deposits, and other funds collected in property management belong to the owner or tenant and must be held in the firm's trust account with proper records. The principal broker is responsible for these trust funds just as for sales earnest money. Commingling property-management funds with firm or personal money violates Arkansas law.

An Arkansas licensee representing the seller who then wants to also represent the buyer in the same transaction may do so only if:

• a.The principal broker files a new license application
• b.Both parties give informed written consent to the dual agency✓
• c.The transaction is below a set dollar amount
• d.The buyer waives all inspection rights

Arkansas permits dual agency only with the informed written consent of both the buyer and the seller. As a dual agent the firm cannot fully advocate for either side and must protect each party's confidential information. Consent must be documented; it does not depend on price thresholds or waiving inspections.