Stricken language would be deleted from and underlined language would be added to present law.
1 State of Arkansas
2 93rd General Assembly A Bill
3 Regular Session, 2021 SENATE BILL 559
4
5 By: Senator Beckham
6
7 For An Act To Be Entitled
8 AN ACT TO AMEND THE REAL ESTATE LICENSE LAW; AND FOR
9 OTHER PURPOSES.
10
11
12 Subtitle
13 TO AMEND THE REAL ESTATE LICENSE LAW.
14
15
16 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS:
17
18 SECTION 1. Arkansas Code 17-42-108 is amended to read as follows:
19 17-42-108. Disclosure requirement.
20 (a)(1) In every real estate transaction involving a licensee, the
21 licensee shall clearly disclose to all parties or to their agents which party
22 or parties he or she is representing.
23 (2) A licensee may represent act as an intermediary under 17-
24 42-320 to more than one (1) party to a real estate transaction pursuant to
25 and subject to rules of the Arkansas Real Estate Commission.
26 (b) The timing, method, and other requirements of such a the
27 disclosure required by subsection (a) of this section shall be established by
28 the commission, and the commission shall also determine the consequences of
29 failure to make disclosure in accordance with such the requirements.
30
31 SECTION 2. Arkansas Code 17-42-311(a)(8), concerning prohibited
32 acts, conduct, and practices by a licensee, is amended to read as follows:
33 (8) Acting for more than one (1) party in a transaction without
34 the knowledge of all parties for whom he or she acts or accepting a
35 commission or valuable consideration for the performance of any of the acts
36 specified in this chapter from any person except the licensed principal
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 SB559
1 broker under whom he or she is licensed;
2
3 SECTION 3. Arkansas Code Title 17, Chapter 42, Subchapter 3, is
4 amended to add an additional section to read as follows:
5 17-42-320. Licensee acting as intermediary Duties.
6 (a) A licensee may act as an intermediary between more than one (1)
7 party to a real estate transaction if the:
8 (1) Licensee obtains written consent from each party for the
9 licensee to act as an intermediary in the real estate transaction; and
10 (2) Written consent of the parties states the source of any
11 expected compensation to the licensee.
12 (b) A representation agreement that authorizes a licensee to act as an
13 intermediary is sufficient to establish written consent required by
14 subsection (a) of this section if the representation agreement specifies in
15 conspicuous bold or underlined print that a licensee acting as an
16 intermediary shall not:
17 (1) Disclose to the buyer that the seller will accept a price
18 less than the asking price, unless instructed to do so in a separate writing
19 by the seller;
20 (2) Disclose to the seller that the buyer will pay a price
21 greater than the price submitted in a written offer to the seller, unless
22 instructed to do so in a separate writing by the buyer;
23 (3) Disclose any confidential information or any information a
24 party specifically instructs the licensee in writing not to disclose, unless
25 the:
26 (A) Licensee is instructed to do so in a separate writing
27 by the respective party;
28 (B) Licensee is required to disclose the information under
29 this chapter or by court order; or
30 (C) Information materially relates to the condition of the
31 property;
32 (4) Treat a party to a real estate transaction dishonestly; or
33 (5) Act in violation of this chapter.
34 (c) A licensee acting as an intermediary under subsection (a) of this
35 section shall act fairly and impartially to all parties he or she represents
36 in a real estate transaction.
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Statutes affected:
SB 559: 17-42-108, 17-42-311(a)