Arkansas Real Estate Practice Exam

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What must licensees disclose when involved in self-dealing?

The commission rates only
Their personal interest in the transaction
Only the details requested by the buyer or seller
Nothing, unless specifically asked

The correct answer is: Their personal interest in the transaction

Self-dealing refers to when a licensee acts in their own best interest rather than their client's. In this scenario, the licensee must disclose their personal interest in the transaction to their client. This means that options A, C, and D are incorrect because they do not fully disclose the licensee's personal interest. Option A only mentions commission rates, while options C and D imply that the licensee does not have to disclose anything unless specifically asked. However, in self-dealing situations, the licensee must disclose their personal interest regardless if the client asks or not. Option B is the most appropriate and complete answer because it addresses the specific action that must be disclosed in self-dealing scenarios.