An act TO AMEND THE LAW CONCERNING AGENCY 10 RELATIONSHIP AND DUTIES RELATED TO REAL ESTATE 11 LICENSES, the official text

Stricken language would be deleted from and underlined language would be added to present law.

1 State of Arkansas                         A Bill
2 95th General Assembly

3 Regular Session, 2025                                           HOUSE BILL 1853

4

5 By: Representatives J. Moore, Hawk

6 By: Senators C. Penzo, J. Dotson, Hester

7

8                        For An Act To Be Entitled

9               AN ACT TO AMEND THE LAW CONCERNING AGENCY

10              RELATIONSHIP AND DUTIES RELATED TO REAL ESTATE

11              LICENSES; TO CLARIFY THE OBLIGATIONS OF DUAL AGENCY;

12              AND FOR OTHER PURPOSES.

13

14

15                                          Subtitle

16                       TO AMEND THE LAW CONCERNING AGENCY

17                       RELATIONSHIP AND DUTIES RELATED TO REAL

18                       ESTATE LICENSES; AND TO CLARIFY THE

19                       OBLIGATIONS OF DUAL AGENCY.

20

21 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:

22

23  SECTION 1. Arkansas Code � 17-42-316 is amended to read as follows:

24  17-42-316. Agency relationship and duties generally.

25  (a) The common law of agency under Arkansas as supplemented by this

26 section applies to the relationship between a licensee and the licensee's

27 client.

28  (b)(1)(A) In Except as provided under subdivision (b)(1)(B) of this

29 section, in accepting employment by a client, a licensee pledges a primary

30 duty of absolute fidelity to protect and promote the interests of the client

31 or clients.

32                       (B) Multiple clients who are represented by the licensee

33 and have consented to dual agency may contractually waive the primary duty of

34 absolute fidelity of the licensee under subdivision (b)(1)(A) of this

35 section.

36              (2) The licensee's duty includes without limitation the

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1 obligation to:

2                 (A) Use reasonable efforts to further the interest of the

3 client;

4                 (B) Exercise reasonable skill and care in representing the

5 client and carrying out the responsibilities of the agency relationship;

6                 (C) Perform the terms of the written agency agreement;

7                 (D) Follow lawful instructions of the client unless doing

8 so would expose the licensee to liability from another party to a contract,

9 lease, or rental agreement;

10                (E) Perform all duties specified in this section in a

11 manner that demonstrates loyalty to the interests of the client;

12                (F) Comply with all requirements of this section and other

13 applicable statutes and rules;

14                (G) Disclose to the client material facts of the

15 transaction that the licensee is aware of or should be aware of in the

16 exercise of reasonable skill and care and that are not confidential

17 information under a current or prior agency or dual agency relationship;

18                (H) Advise the client to obtain expert advice concerning

19 material matters when necessary or appropriate;

20                (I) Account in a timely manner for all moneys and property

21 received in which the client has or may have an interest;

22                (J)(i) Keep confidential all confidential information

23 Except as provided in subdivision (b)(2)(J)(ii) of this section, refrain from

24 disclosing any confidential information.

25                (ii) The disclosure of confidential information may

26 be limited by contract when a licensee is an authorized dual agent under

27 subdivision (b)(1)(B) of this section, including without limitation

28 confidential information from or concerning the client that may materially

29 compromise the negotiating position of the client, unless disclosure is

30 required by law or is authorized in writing by the client; and

31                (K) Refrain from disclosing confidential information to a

32 licensee who is not an agent of the client.

33  (c) The Except as provided in subsection (b)(1)(B) and subdivision

34 (b)(2)(J)(ii) of this section, the duties required of a licensee under this

35 section may not be waived by a client.

36

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