Key Takeaways
- All agency agreements in Arkansas must be in writing to be enforceable
- Listing agreements establish the terms of seller representation
- Buyer agency agreements establish the terms of buyer representation
- Agreements must specify compensation, duration, and duties
- Licensees should explain all terms before clients sign
Last updated: January 2026
Arkansas Agency Agreements
Agency relationships in Arkansas must be established through written agreements.
Types of Agency Agreements
Listing Agreements (Seller Representation)
| Type | Description |
|---|---|
| Exclusive Right to Sell | Broker earns commission regardless of who sells |
| Exclusive Agency | Broker earns commission unless owner sells directly |
| Open Listing | Only the broker who brings buyer earns commission |
| Net Listing | Generally discouraged—broker keeps amount over net |
Important: Exclusive Right to Sell is the most common and protective type of listing agreement.
Buyer Agency Agreements
| Type | Description |
|---|---|
| Exclusive Buyer Agency | Buyer works with one broker only |
| Non-Exclusive Buyer Agency | Buyer may work with multiple brokers |
Required Elements of Agency Agreements
Listing Agreement Elements
| Element | Description |
|---|---|
| Property description | Legal description or address |
| Listing price | Asking price |
| Commission rate | Usually percentage of sale price |
| Duration | Start and end dates |
| Seller authority | Authorization to market property |
| Broker duties | Services to be provided |
| Signatures | Broker and all owners |
Buyer Agency Agreement Elements
| Element | Description |
|---|---|
| Buyer identification | Names of all buyers |
| Property type | What buyer is seeking |
| Compensation | How broker will be paid |
| Duration | Start and end dates |
| Broker duties | Services to be provided |
| Signatures | Broker and buyer(s) |
Commission and Compensation
Key Points About Commissions
| Point | Details |
|---|---|
| Negotiable | All commissions are negotiable |
| Earned when | Per agreement terms (usually at closing) |
| Paid by | Seller, buyer, or split (as negotiated) |
| Procuring cause | Key concept for disputes |
Procuring Cause
Procuring cause determines which broker is entitled to a commission when there's a dispute:
| Factor | Consideration |
|---|---|
| Who introduced buyer | First showing |
| Continuous negotiations | Ongoing involvement |
| Contract terms | What agreement says |
| MLS rules | Local board rules |
Agreement Termination
Agency agreements may terminate by:
| Method | Description |
|---|---|
| Expiration | End date reached |
| Completion | Sale closes |
| Mutual agreement | Both parties agree to cancel |
| Death | Of principal or agent |
| Destruction | Of property |
| Breach | Violation of terms |
Early Termination
| Situation | Result |
|---|---|
| Seller wants out | May owe commission if buyer found |
| Broker wants out | May lose rights to commission |
| Mutual cancellation | Terms negotiated |
Key Point: Always get termination agreements in writing.
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Test Your Knowledge
Which type of listing agreement provides the MOST protection for the listing broker?
A
B
C
D
Test Your Knowledge
In Arkansas, agency agreements must be:
A
B
C
D