Under Arkansas law, when a brokerage firm represents both the buyer and the seller in the same real estate transaction without designating separate agents to each party, this arrangement requires which of the following to be legally permissible?
Correct Answer
B) Written consent from both the buyer and the seller after full disclosure
Under Arkansas agency law and AREC regulations, dual agency — where the same brokerage represents both buyer and seller in a single transaction — is permissible only when both parties provide informed written consent after the dual agency relationship has been fully disclosed. This written consent requirement protects both parties and is a non-negotiable element of lawful dual agency in Arkansas.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The legal ending of an agency relationship, which can occur through completion, expiration, mutual agreement, breach, death, incapacity, or bankruptcy of either party.
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
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