Under Arkansas law, when must a real estate licensee first disclose the nature of the agency relationship to a prospective buyer?
Correct Answer
B) At the first substantive contact with the prospective buyer
Under AREC Rule 10 and Ark. Code Ann. § 17-42-101 et seq., Arkansas licensees are required to disclose the agency relationship at the first substantive contact with a prospective buyer or seller. This ensures that consumers understand who the agent represents before any meaningful discussions about property or transaction terms begin.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
The legal principle that holds a broker responsible for the actions of their agents and employees performed within the scope of the agency relationship.
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