Arkansas Real Estate Practice Exam 2025 – Comprehensive All-in-One Guide for Exam Success

Failing to disclose the agency relationship as required can result in sanctions under Section 17 of Act 690 of 1993. This is because the agency relationship between a client and an agent is a crucial aspect of any transaction. It ensures that the agent is acting in the best interest of the client and maintains transparency in all dealings. Not disclosing this relationship can lead to breaches of trust and potential conflicts of interest. Therefore, failing to disclose the agency relationship can result in sanctions to prevent such violations and maintain the integrity of the transaction process.

While options A and D may seem like consequences at first glance, they are not specific to failure to disclose an agency relationship. A warning could potentially be given in any situation, and there would still be a consequence for not disclosing the relationship. Option C, immediate license revocation, is severe and may not always be the first consequence for not following protocol, especially for a first-time offense. Therefore, option B is the most appropriate consequence for failing to disclose the agency relationship as it addresses the specific issue and is a common disciplinary measure.