Robert is a licensed Arkansas broker who also wants to purchase a property listed by another broker in the same office. Robert prepares a purchase agreement and submits it without disclosing to the seller that he is a licensed real estate broker. Under AREC rules and Arkansas license law, which of the following best describes Robert's obligation?
Correct Answer
A) Robert must disclose his status as a licensed real estate broker to the seller before or at the time of making the offer
Under AREC rules and Ark. Code Ann. § 17-42-101 et seq., a licensed real estate broker or agent who is purchasing property for their own account must disclose their licensed status to the seller before or at the time of submitting the offer. This disclosure requirement exists because the licensee's professional knowledge and expertise could give them an informational advantage over the seller, and transparency is required to protect the public.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Contingencies are conditions written into a real estate contract that must be met before the transaction can close. If a contingency is not satisfied, the buyer can typically cancel the contract without penalty.
Contract termination occurs when a contract is ended or discharged, releasing both parties from their obligations. A contract can be terminated through performance, mutual agreement, operation of law, or breach.
A counteroffer is a response to an original offer that changes one or more terms of the offer, effectively rejecting the original offer and creating a new offer. The party who makes the counteroffer becomes the new offeror.
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- → A Rhode Island licensee encounters a listing contract is drafted. What should the licensee remember?
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