Arkansas License Law

A buyer's agent receives a bonus from the seller without the buyer's knowledge. This constitutes:

AA reasonable fee for services rendered
BA violation of the duty of loyalty and disclosure to the buyer✓ Correct
CAn acceptable industry practice
DA legal transaction as long as AREC is notified

Explanation

A buyer's agent receiving undisclosed compensation from the seller creates a conflict of interest and violates the fiduciary duties of loyalty and disclosure owed to the buyer-client. All compensation must be disclosed.

Related Arkansas Arkansas License Law Questions

Practice More Arkansas Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arkansas Quiz →