Arkansas Real Estate Salesperson Exam — All Questions

The principle of contribution states that the value of a component or improvement is measured by:

• a.The raw number of square feet of floor area or land area that the improvement happens to occupy
• b.The owner's personal emotional attachment to and sentimental feelings about that improvement
• c.Its original construction or installation cost in every case, dollar for dollar, with no exception
• d.How much it adds to the overall value of the property, not its cost✓

Under contribution, an improvement is worth the amount it adds to the whole property's market value, which may be more or less than its cost. This principle explains why some renovations do not fully return their expense, a key point in over-improvement analysis.

Under Internal Revenue Code Section 121, a qualifying homeowner may generally EXCLUDE from taxable capital gain:

• a.Up to $250,000 of gain if single, or $500,000 if married filing jointly✓
• b.Up to a full one million dollars of gain on any property at all, at any time and any frequency
• c.All gain on any and every investment or rental property the taxpayer happens to own and sell
• d.Absolutely nothing, because gain on the sale of a home is always fully and entirely taxable

Section 121 lets homeowners who owned and used the home as their principal residence for at least two of the prior five years exclude up to $250,000 of gain (single) or $500,000 (married filing jointly). It applies to a primary residence, not to investment property.

Depreciation recapture on the sale of investment real estate means that:

• a.All of the depreciation deductions previously claimed are simply refunded to the investor in cash
• b.The investor is legally required to physically restore and rebuild the depreciated building itself
• c.Gain from prior depreciation may be taxed, often at a special rate✓
• d.No income tax is ever owed at all on the sale of a property that has previously been depreciated

When depreciated property is sold at a gain, the portion of gain due to depreciation deductions is 'recaptured' and taxed under special rules, reflecting the earlier tax benefit. It is a tax concept, not a requirement to rebuild, and it increases, not eliminates, tax on sale.

Which appraisal approach is generally MOST reliable for a special-purpose property, such as a church or public school, that rarely sells and earns no market income?

• a.The sales comparison approach, which depends on recent sales of similar comparable properties
• b.The income approach, which converts a property's market rental income into an indicated value
• c.The gross rent multiplier method, which relies on typical market rents that these lack entirely
• d.The cost approach✓

Special-purpose properties have few or no comparable sales and generate no market rent, so the cost approach (replacement cost new, less depreciation, plus land) is typically most reliable. Sales comparison lacks comparables and the income/GRM methods need market income these properties do not produce.

The four characteristics an item must have to possess value in the market, often remembered as DUST, are:

• a.Debt, Utility, Supply, and Taxes, a mix of unrelated financing and cost terms rather than value
• b.Demand, Utility, Scarcity, and Transferability✓
• c.Depreciation, Use, Sale, and Title, which describe stages of ownership rather than value itself
• d.Demand, Ownership, Scarcity, and Time, which swaps in two terms that are not part of the concept

For something to have market value it must have Demand (buyers who want it), Utility (usefulness), Scarcity (limited supply), and Transferability (the ability to convey it). The DUST acronym captures these four essentials of value.

Real estate salespersons in Arkansas are licensed and regulated by:

• a.The Arkansas Realtors Association
• b.The county circuit clerk
• c.The Arkansas Development Finance Authority
• d.The Arkansas Real Estate Commission (AREC)✓

The Arkansas Real Estate Commission (AREC) licenses and disciplines brokers and salespersons and enforces the state real estate license law and regulations. A trade association is a private membership organization and has no licensing authority.

In Arkansas, the licensee who is responsible for a firm's operations, trust account, and supervision of affiliated licensees is the:

• a.Designated agent
• b.Executive broker
• c.Salesperson
• d.Principal broker✓

Arkansas recognizes salesperson, executive broker, and principal broker classifications. Every firm must have a principal broker who is responsible for firm operations, the trust account, and supervision of affiliated executive brokers and salespersons. Executive brokers and salespersons work under the principal broker.

The Arkansas Real Estate Recovery Fund is used primarily to:

• a.Reimburse a consumer for an actual loss from certain fraudulent acts of a licensee when a judgment cannot be collected✓
• b.Pay commissions when a buyer defaults
• c.Provide grants to real estate schools
• d.Guarantee the resale value of listed properties

The Recovery Fund may reimburse a member of the public who obtains a final judgment against a licensee for an actual loss from fraud, misrepresentation, deceit, or conversion of funds and cannot otherwise collect, subject to statutory limits. When the fund pays, the licensee's license is suspended until the fund is repaid. It is not an insurance or grant program.

An Arkansas salesperson may accept compensation for brokerage services from:

• a.The Recovery Fund
• b.Any cooperating salesperson
• c.The principal broker with whom the salesperson is affiliated✓
• d.The buyer directly at closing

An Arkansas salesperson is paid only through the principal broker who supervises the salesperson's licensed activity. A salesperson may not accept a fee or commission directly from a buyer, seller, or another licensee. The principal broker is responsible for the firm's trust account and supervision.

Before a consumer discloses confidential information, an Arkansas licensee is expected to:

• a.Record a memorandum of the listing
• b.Obtain a preapproval letter
• c.Disclose whom the licensee represents in the transaction✓
• d.Collect a nonrefundable retainer

Arkansas requires licensees to disclose the agency relationship, identifying whether the licensee represents the seller, the buyer, both, or neither, so the consumer understands the relationship before revealing confidential information. Timely agency disclosure is a core consumer-protection requirement.

A licensee's firm may represent both the buyer and the seller in the same Arkansas transaction only when:

• a.The principal broker approves after closing
• b.The sale price is below a set threshold
• c.The Commission grants a waiver
• d.Both parties give informed written consent✓

Dual agency is permitted only with the informed written consent of both parties. A dual agent must remain neutral on price and terms and may not reveal one party's confidential negotiating information to the other, because dual agency limits the advocacy each client would otherwise receive.

Earnest money an Arkansas salesperson receives from a buyer must be:

• a.Given directly to the seller with the offer
• b.Delivered promptly to the principal broker for deposit in the firm's trust account✓
• c.Deposited in the salesperson's personal account
• d.Held by the salesperson until closing

Trust funds, including earnest money, are handled through the firm's trust account, for which the principal broker is responsible. A salesperson who receives such funds must deliver them promptly to the principal broker. Commingling or converting trust money is a serious violation of Arkansas license law.

A person who passes the Arkansas salesperson examination may begin practicing real estate when:

• a.The applicant joins the Realtors association
• b.The applicant completes post-license education
• c.The exam score is posted
• d.The license is placed with and supervised by a principal broker✓

Passing the exam is one step; an Arkansas salesperson may conduct licensed activity only after the license is placed with a principal broker who supervises the salesperson. Post-license education is required during the first licensing period, but active practice begins when the license is affiliated with a principal broker.

An applicant for an Arkansas real estate salesperson license must complete prelicensing education of:

• a.Thirty classroom hours, all of it in the basic principles of real estate
• b.Sixty classroom hours, at least thirty in the basic principles of real estate✓
• c.Ninety classroom hours, at least sixty of which are in Arkansas license law
• d.One hundred twenty classroom hours of approved classroom or distance education

A salesperson applicant must show completion of courses in real estate by classroom attendance or approved distance education totalling not less than sixty classroom hours, of which at least thirty hours must be in the basic principles of real estate. Cite: 17 CAR Sec. 220-401(b)(2).

To satisfy the apprenticeship requirement for an Arkansas broker license, an applicant must have held an active salesperson or broker license for:

• a.Twelve months at any time before the date of application
• b.Eighteen months within the thirty-six-month period before applying
• c.Thirty-six months within the previous sixty-month period
• d.Twenty-four months within the previous forty-eight-month period✓

The broker experience requirement is an active, bona fide apprenticeship of not less than twenty-four months within the forty-eight-month period immediately preceding the date of application. Cite: Ark. Code Ann. Sec. 17-42-303(b)(1).

Arkansas broker applicants must complete at least sixty classroom hours within the thirty-six months before applying, and of those hours at least forty-five must be in:

• a.Any course offered by an accredited postsecondary institution
• b.Appraisal principles and the standards of professional practice
• c.A course developed by the Arkansas Real Estate Commission✓
• d.Property management supervision and best practices coursework

Broker applicants must complete not less than sixty classroom hours within the thirty-six months immediately preceding application, of which at least forty-five hours are in a course developed by the Commission. Cite: 17 CAR Sec. 220-401(a)(2).

On the Arkansas licensing examination, a broker applicant must achieve a minimum score of:

• a.Seventy on the general part and seventy-five on the Arkansas law part✓
• b.Seventy on the general part and seventy on the Arkansas law part
• c.Seventy-five on the general part and seventy-five on the Arkansas law part
• d.Eighty on the general part and eighty-five on the Arkansas law part

Broker applicants need a minimum score of seventy on the general part and seventy-five on the Arkansas law part; salesperson applicants need seventy on each part. Cite: 17 CAR Sec. 220-402(b)(1), (c)(1).

An Arkansas applicant who passes one part of the licensing examination but fails the other keeps credit for the part passed only if the failed part is retaken and passed within:

• a.Thirty days of the initial examination
• b.Ninety days of the initial examination
• c.Six months of the initial examination✓
• d.Two years of the initial examination

An applicant who passes either the Arkansas law part or the general part but fails the other need not retake the part passed if the failed part is retaken and passed within six months of the initial examination; otherwise the entire examination must be retaken. Cite: 17 CAR Sec. 220-402(d)(1).

An Arkansas applicant who passes the licensing examination must pay the license fee and Real Estate Recovery Fund fee within ninety days, or:

• a.The applicant is placed on inactive status until the fee is paid in full
• b.The examination results are void and the entire examination must be retaken✓
• c.A late fee of one hundred dollars is added to the license and recovery fund fee
• d.The Commission issues the license but holds back the licensee's pocket card

Failure to pay the license fee and Recovery Fund fee within ninety days of the examination invalidates the examination results, and the applicant must make new application and retake the examination as an original applicant. Cite: Ark. Code Ann. Sec. 17-42-306(b)(2).

A newly licensed Arkansas salesperson must complete a post-license education course consisting of:

• a.Six classroom hours
• b.Nine classroom hours
• c.Thirty-six classroom hours
• d.Eighteen classroom hours✓

Salespersons must complete an eighteen-classroom-hour post-license course; brokers must complete the thirty-classroom-hour broker course developed by the Commission. Cite: 17 CAR Sec. 220-1105(b), (c).

If an Arkansas licensee does not deliver proof of the post-license education course by the deadline, the license is:

• a.Placed on inactive status until satisfactory documentation is filed✓
• b.Revoked, and the licensee must reapply as an original applicant for licensure
• c.Suspended for six months and then automatically reinstated by the Commission
• d.Renewed with a probationary restriction noted on the face of the license

Documentation must reach the Commission no later than the end of the month six months following the date of initial licensure; if it does not, the license is placed on inactive status until the licensee files satisfactory documentation. Cite: 17 CAR Sec. 220-1105(f).

Each year an Arkansas broker or salesperson must complete continuing education of not less than six nor more than seven classroom hours, including at least one hour focused on:

• a.Federal fair housing law enforcement and advertising compliance
• b.Trust account reconciliation and brokerage recordkeeping
• c.Personal safety precautions for real estate agents✓
• d.Commission complaint, citation, and disciplinary procedure

The annual continuing education requirement is not less than six or more than seven classroom hours, with at least one classroom hour focusing on personal safety precautions for real estate agents. Cite: Ark. Code Ann. Sec. 17-42-307(b)(1)(A).

An Arkansas licensee who files for renewal but fails to provide proof of continuing education:

• a.Commits a violation punishable by a penalty of up to one thousand dollars
• b.Holds an inactive license until proof is provided to the Commission✓
• c.Has the renewal application returned, and the license expires unrenewed
• d.Must retake the Arkansas law part of the salesperson examination

If a licensee files for renewal but fails to provide proof of continuing education, the licensee's license is inactive until proof is provided to the Commission. Cite: Ark. Code Ann. Sec. 17-42-307(b)(3).

To activate an Arkansas license that has been renewed as inactive, the licensee must show continuing education for each inactive year of:

• a.Six classroom hours, with no stated maximum
• b.Nine classroom hours, capped at twenty-seven classroom hours
• c.Fifteen classroom hours, capped at forty-five classroom hours
• d.Seven classroom hours, capped at thirty classroom hours✓

An inactive license may be activated on proof of seven classroom hours or the equivalent of approved continuing education for each year renewed as inactive, not to exceed a total of thirty classroom hours. Cite: 17 CAR Sec. 220-602(d)(1).

A person whose Arkansas real estate license is revoked may apply for a new license:

• a.After two years from the date of revocation✓
• b.After five years from the date of revocation
• c.Only if the Commission first grants a waiver by majority vote
• d.At any time, because revocation bars only the renewal of the old licence

A licensee whose license is revoked is eligible to apply for a new license after the expiration of two years from the date of revocation. Cite: Ark. Code Ann. Sec. 17-42-311(c).

After notice and hearing, the Arkansas Real Estate Commission may impose a civil penalty on a person who engaged in unlicensed real estate activity of no more than:

• a.One thousand dollars
• b.Two thousand dollars
• c.Five thousand dollars✓
• d.Ten thousand dollars

On finding that a person engaged in unlicensed real estate activity, the Commission may impose a civil penalty of no more than five thousand dollars and assess costs, and may also require reimbursement of compensation collected. Cite: Ark. Code Ann. Sec. 17-42-109(a), (c).

When an Arkansas licensee is found to have violated the license law, the Commission may impose a monetary penalty of not more than:

• a.Five hundred dollars for each violation
• b.One thousand dollars for each violation✓
• c.Five thousand dollars for each violation
• d.Twenty-five thousand dollars for each violation

Among the sanctions the Commission may impose on a licensee is a penalty of not more than one thousand dollars for each violation, alone or combined with suspension, revocation, education, or restitution. Cite: Ark. Code Ann. Sec. 17-42-312(a)(4)(B).

Instead of a full disciplinary hearing, the AREC executive director may issue a citation to a licensee who fails to complete annual education, carrying a penalty of not more than:

• a.Twenty-five dollars
• b.Fifty dollars
• c.Two hundred fifty dollars
• d.One hundred dollars✓

In lieu of the ordinary complaint and hearing procedure, the executive director may issue a citation imposing a penalty of not more than one hundred dollars on a licensee who fails to complete annual education requirements or post-licensure education by the deadline. Cite: Ark. Code Ann. Sec. 17-42-312(d)(1)(A).

Payment from the Arkansas Real Estate Recovery Fund is capped, for any one violation or continuing series of violations, at:

• a.Ten thousand dollars
• b.Twenty-five thousand dollars✓
• c.Fifty thousand dollars
• d.Seventy-five thousand dollars

The Commission shall not pay more than twenty-five thousand dollars for any one violation or continuing series of violations, regardless of how many licensees took part. Cite: Ark. Code Ann. Sec. 17-42-406(a)(4)(A).

The total the Arkansas Real Estate Recovery Fund may pay with respect to the acts of any one licensee is:

• a.Seventy-five thousand dollars✓
• b.Twenty-five thousand dollars
• c.One hundred thousand dollars
• d.Two hundred fifty thousand dollars

Nothing in the subchapter obligates the fund for more than a total of seventy-five thousand dollars with respect to the acts of any one licensee or any group of related claims. Cite: Ark. Code Ann. Sec. 17-42-406(c).

The Arkansas Real Estate Commission pays an aggrieved party from the Recovery Fund only after the licensee has failed to pay the ordered amount and:

• a.The Commission has revoked or suspended the licensee's license
• b.The aggrieved party has filed a separate suit in circuit court
• c.Thirty days have passed since the final order and no appeal was taken✓
• d.The Commission has recovered the amount from the licensee's surety bond

If the ordered amount is unpaid thirty days after entry of the Commission's final order and the order has not been appealed to circuit court, the Commission shall pay the aggrieved party from the fund on request. Cite: Ark. Code Ann. Sec. 17-42-406(a)(4).

In awarding damages against a licensee, the Arkansas Real Estate Commission may award:

• a.Actual damages plus interest from the date of the violation
• b.Actual damages plus punitive damages where the conduct was wilful
• c.Any damages a circuit court could award in a civil action
• d.Actual, compensatory damages only✓

The Commission's authority is limited to actual, compensatory damages; it may not award punitive or exemplary damages, nor interest on damages, and the circuit court's appellate jurisdiction is limited the same way. Cite: Ark. Code Ann. Sec. 17-42-407(a).

An Arkansas licensee convicted of, or pleading guilty or nolo contendere to, any crime other than a traffic violation must report it in writing to the Commission within:

• a.Ten days after the conviction or plea
• b.Thirty days after the conviction or plea✓
• c.Sixty days after the conviction or plea
• d.The licensee's next license renewal period

A licensee convicted of or pleading guilty or nolo contendere to any crime other than a traffic violation must make a written report to the Commission within thirty days, including the charging document and judgment. Cite: 17 CAR Sec. 220-1015(a)(1).

A temporary interim Arkansas real estate license issued while the permanent license is pending is valid for a period of not more than:

• a.Thirty days✓
• b.Sixty days
• c.One hundred twenty days
• d.Six months

No person may act as a licensee until receiving a current valid license and pocket card, but a temporary interim license may be issued pending issuance of the permanent license and is valid for not more than thirty days. Cite: 17 CAR Sec. 220-702(b).

When a licensee's association with an Arkansas principal broker ends, the principal broker must notify the Commission and return the license and pocket card within:

• a.Twenty-four hours
• b.Three days
• c.Seven days✓
• d.Fourteen days

Within seven days after the association ends, the principal broker must notify the Commission and return the terminated licensee's license and pocket card; the notification automatically inactivates the license. Cite: 17 CAR Sec. 220-705(a).

If licensees are to be licensed at an Arkansas branch office, the principal broker must:

• a.Obtain a separate principal broker license for that office
• b.File a surety bond covering the branch office trust account
• c.Register the branch office as a separate firm with the Commission
• d.Designate an executive broker to be in charge of the branch office✓

A branch office must display a real estate sign and a duplicate principal broker's license, and if licensees are licensed there the principal broker must designate an executive broker to be in charge under a written designation of responsibility filed with the Commission. Cite: 17 CAR Sec. 220-704(a).

The sign an Arkansas principal broker displays at the place of business must be permanently attached, clearly visible to the public, and bear:

• a.The principal broker's name, license number, and date of licensure
• b.The name under which the broker does business and the words real estate✓
• c.The Commission's official seal and the firm's regular business hours
• d.The names of every executive broker and salesperson at that firm office

The sign must bear the name under which the principal broker conducts business and the words real estate, realty, REALTOR, REALTIST, or other words approved by the Commission that clearly indicate the broker is engaged in the real estate business. Cite: 17 CAR Sec. 220-703(a)(1).

The designation of an executive broker by an Arkansas principal broker becomes effective:

• a.When the designation form is filed with the Commission✓
• b.When the principal broker and executive broker sign the form
• c.Thirty days after the Commission approves the designation
• d.On the first day of the next license renewal year for the firm

The principal broker must file a designation form signed by both brokers, and the designation of an executive broker is effective when filed with the Commission. Designating executive brokers does not absolve the principal broker of general responsibility. Cite: 17 CAR Sec. 220-1003(a)(2)(D), (E).

An Arkansas licensee acting solely as agent for a buyer must disclose that relationship to the seller or the seller's agent:

• a.Before the buyer submits a written offer
• b.Before showing the seller's property to the buyer
• c.At the first contact with the seller, lessor, or their agent✓
• d.Within three days after the offer and acceptance is signed

A buyer's or lessee's agent must disclose the agency relationship to a potential seller or lessor, or to their licensed agent, at the first contact with the seller, the lessor, or the agent of either. Cite: 17 CAR Sec. 220-802(a)(1)(B).

Arkansas agency disclosure may be made orally at first, but in all cases it must be reduced to writing and made:

• a.Within seventy-two hours after the initial oral disclosure is given
• b.At the time the agency or listing contract is signed by the client
• c.Before the licensee accepts earnest money from the buyer
• d.Before the other party signs any document related to the transaction✓

Disclosure must be in writing and may initially be made orally, but in all cases it must be made before the buyer or lessee, or the seller or lessor, signs any document related to the transaction, such as an offer or lease. Evidence of the disclosure must be kept. Cite: 17 CAR Sec. 220-801(b), (c); 17 CAR Sec. 220-802(b), (c).

In an Arkansas dual agency, the written consent of all parties must be obtained:

• a.At any time before the transaction closes
• b.Prior to or at the time the contract is executed✓
• c.Within ten days after the offer is accepted
• d.Only if the licensee is paid by both parties

A licensee representing both sides must make the disclosure required of seller and buyer agents, and all parties must have given written consent to the dual representation prior to or at the time of execution of the agency, listing, property management, lease, rental, or offer and acceptance contract. Cite: 17 CAR Sec. 220-803(a).

An Arkansas licensee may accept compensation from more than one party to a transaction only with:

• a.Full written disclosure to all parties to the transaction✓
• b.The written consent of the licensee's principal broker
• c.Prior written approval from the Commission
• d.Oral notice to the party the licensee represents

A licensee shall not accept compensation from more than one party without full written disclosure to all parties to the transaction, and may not accept consideration from any source in connection with the property without full written disclosure to the party represented. Cite: 17 CAR Sec. 220-805(c), (d).

Every written agency agreement an Arkansas licensee uses, including a listing or buyer representation agreement, must contain:

• a.A statement of the agreed commission rate
• b.The signature of the supervising principal broker
• c.A specific determinable duration or expiration date✓
• d.A notice of the right to cancel within three days

A licensee must put a specific determinable duration or a specific expiration date on all written agency agreements or contracts and on any extensions of them, including listing and buyer representation agreements. Cite: 17 CAR Sec. 220-1002.

Before taking a listing on property an Arkansas licensee believes is already subject to an exclusive agreement with another firm, the licensee must first:

• a.Obtain a signed written release of the client from that principal broker
• b.Wait until the existing exclusive agreement expires by its own terms
• c.Report the competing agreement to the Commission
• d.Communicate with the other principal broker to confirm it exists✓

A licensee shall not knowingly enter into an agency agreement where there is reason to believe an exclusive agreement is in force without first communicating with the other principal broker to confirm it; if one is in force, the licensee must notify the client in writing to consult an attorney about liability for two commissions. Cite: 17 CAR Sec. 220-1012(b)(1), (2).

Trust funds delivered to an Arkansas principal broker must be deposited, delivered to an escrow agent, or handled under a written agreement of the parties no later than three days following:

• a.The date the licensee personally receives the funds from the buyer
• b.Execution of the real estate contract by both seller and buyer✓
• c.Acceptance of the buyer's written offer by the seller alone
• d.The date the inspection contingency in the contract ends

No later than three days following execution of a real estate contract by both seller and buyer, trust funds delivered to the principal broker must be deposited in the trust account, delivered to an escrow agent, or deposited under a written agreement of the seller and buyer. If the third day is a Saturday, Sunday, or legal holiday, it extends to the next day that is not. Cite: 17 CAR Sec. 220-1007(g)(1).

An Arkansas broker's trust account must be non-interest-bearing except as specifically authorized, must be federally insured, and its name must include:

• a.The word trust or the word escrow✓
• b.The principal broker's full legal name
• c.The words client funds and the firm's license number
• d.The word fiduciary and the year the account was opened

The trust account must be non-interest-bearing except as authorized, the name on the account must include either trust or escrow, and the account must be at an institution insured by the FDIC or another federal insuring agency. Cite: 17 CAR Sec. 220-1007(c)(4), (5).

An Arkansas principal broker may keep personal funds in the firm's trust account only to cover a bank-required minimum balance and service charges, and the service-charge cushion may not exceed:

• a.One month of service charges
• b.Three months of service charges
• c.Six months of service charges✓
• d.Twelve months of service charges

The broker's own clearly identified funds may be kept in the trust account only for a bank-required minimum balance and for a reasonable amount to cover service charges, which shall not exceed the total of six months service charges. Cite: 17 CAR Sec. 220-1007(d).

Arkansas trust account bank statements must be reconciled in writing:

• a.Each quarter, and the reconciliations kept for one year
• b.Twice a year, and the reconciliations kept for five years
• c.Whenever the Commission requests an audit of the account
• d.At least monthly, and the reconciliations kept for at least three years✓

All trust account bank statements must be reconciled in writing at least monthly and balanced to the total undisbursed trust funds, and copies of the reconciliations must be kept by the broker for at least three years or longer if other law requires. Cite: 17 CAR Sec. 220-1007(g)(2).

Which of the following is NOT one of the circumstances in which an Arkansas broker is deemed to have properly disbursed trust funds?

• a.When the broker decides the buyer has breached the contract✓
• b.Upon the rejection of an offer to buy, sell, rent, lease, exchange, or option real estate
• c.Upon the filing of an interpleader action in a court of competent jurisdiction
• d.Upon securing a written agreement signed by all parties having an interest in the funds

The rule lists the disbursements deemed proper: rejection of an offer, withdrawal of an unaccepted offer, closing, a separate written agreement signed by all parties with an interest, an interpleader action, a court order, or a reasonable interpretation of the contract. A broker's own view that a party breached is not on the list. Cite: 17 CAR Sec. 220-1008(c).

When an Arkansas broker disburses trust funds without the express written agreement of all parties to the contract, the broker must:

• a.File a copy of the disbursement record with the Commission
• b.Immediately notify all parties in writing of the disbursement✓
• c.Hold the remaining balance until the parties sign a release
• d.Obtain a court order confirming the disbursement was proper

When a broker makes a disbursement to which all parties to the contract have not expressly agreed in writing, the broker must immediately notify all parties in writing of the disbursement. Cite: 17 CAR Sec. 220-1008(d).