Arkansas Real Estate Practice Exam

Under what condition can a property be advertised without a listing agreement?

1. When the property is open for auction

2. With the owner's authorization

3. If the property has been on the market for over six months

4. None; a listing agreement must always be in place

The correct answer is: With the owner's authorization

When a property is advertised without a listing agreement, it is essentially being marketed without the permission of the owner. This can happen if a real estate agent or broker believes that advertising the property will attract potential buyers and lead to a sale. However, this is not a common practice as it is risky for both the agent and the owner. A listing agreement is typically required for an agent to legally market and sell a property on behalf of the owner. Option A is incorrect because an auction is one way to sell a property, but a listing agreement is still needed. Option C is incorrect because there is no set time limit for a listing agreement; it can be any length of time agreed upon between the owner and agent. Option D is incorrect because as stated before, a listing agreement is typically required for an agent to market and sell a property.