Chapter 1
Arkansas Real Estate Law and Commission
Course: Arkansas Real Estate Exam Prep
Subject: Arkansas State Broker Exam Prep
Chapter: Agency Relationships And Law Of Arkansas Real Estate Broker Exam Prep
Types of Agency Relationships
Agency relationships vary depending upon whom the broker represents and how representation is structured. Arkansas law recognizes several agency arrangements, each creating different duties and responsibilities.
Understanding these relationships is essential because disclosure requirements, fiduciary duties, and liability exposure depend heavily upon the type of agency involved.
1. Seller Agency
Seller agency exists when the broker represents the seller in a transaction.
The seller becomes the principal, and the broker acts as the seller's fiduciary representative.
The seller agent's responsibilities include:
- Marketing the property
- Advising the seller
- Presenting offers
- Negotiating favorable terms
- Protecting confidential information
- Disclosing material information to the seller
The seller agent owes loyalty exclusively to the seller.