Agency
A net listing is prohibited in Arkansas because it:
ACreates an unfair advantage for buyers
BCreates a conflict of interest between the broker's financial interest and the duty to the client✓ Correct
CViolates RESPA regulations
DRequires the broker to guarantee a minimum sale price
Explanation
A net listing (where the broker keeps everything above a set price) creates a direct conflict of interest between the broker's financial gain and their fiduciary duty to get the best possible price for the seller. AREC prohibits net listings.
Related Arkansas Agency Questions
- An implied agency relationship can be created by:
- An agent who has NOT been hired by a buyer but nonetheless acts in ways that create a reasonable belief of representation is an example of:
- A net listing in Arkansas is:
- What distinguishes an 'express' agency from an 'implied' agency?
- An agent's authority to bind the principal in contract is called:
- Which of the following best describes a subagent?
- A seller's agent represents the seller but has no client relationship with the buyer. What duties does the agent owe to the buyer?
- The written agency disclosure required by Arkansas law must be provided to:
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