Arkansas Real Estate Practice Exam

When must the Seller or Lessor Agents notify the Buyer or Lessee about their agency relationship?

1. After documents are signed

2. Before any documents are signed

3. At the closing of the sale or lease

4. When the buyer or lessee asks

The correct answer is: Before any documents are signed

Seller or Lessor Agents must notify the Buyer or Lessee about their agency relationship before any documents are signed in order to ensure transparency and mutual understanding between all parties involved. Option A is incorrect because by waiting until after documents are signed, the buyer or lessee may have already entered the agreement without being fully informed. Option C is incorrect because waiting until the closing of the sale or lease is also too late, as the buyer or lessee should know the agency relationship beforehand in order to make an informed decision. Option D is incorrect because the responsibility falls on the agents to disclose this information, rather than relying on the buyer or lessee to ask.