Opinion No.

The Honorable John Paul Capps State Representative P.O. Box 1488 Searcy, Arkansas 72145-1488

Dear Representative Capps:

This official Attorney General opinion is rendered in response to the following question concerning real estate agents:

Does a loan given by a licensed real estate agent to a seller and/or buyer constitute an interest in the property of the seller and/or buyer if the loan is evidenced by a promissory note and secured by an unrecorded second mortgage on the property in question?

It is my opinion that the mortgage held by the agent clearly constitutes an interest in the property.1

A…