Agent Tara works for Ozark Realty and has been representing buyer Kevin for several weeks. Kevin asks Tara to show him a property listed by Ozark Realty—the same brokerage. Tara realizes this situation creates a dual agency. Under Arkansas law, what must Tara do before proceeding?
Correct Answer
D) Obtain informed written consent from both the seller and Kevin before acting as a dual agent
Arkansas law permits dual agency only with the informed written consent of all parties involved. Under AREC rules, when a licensee or brokerage represents both the buyer and the seller in the same transaction, both parties must be fully informed of the dual agency relationship and must provide written consent before the agent proceeds. This protects both parties' interests and satisfies Arkansas disclosure requirements.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
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