Arkansas Real Estate Salesperson Exam — All Questions
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Real estate salespersons in Arkansas are licensed and regulated by:
- a.The Arkansas Realtors Association
- b.The Arkansas Real Estate Commission (AREC)✓
- c.The Arkansas Development Finance Authority
- d.The county circuit clerk
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.Executive broker
- b.Salesperson
- c.Principal broker✓
- d.Designated agent
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.Guarantee the resale value of listed properties
- c.Provide grants to real estate schools
- d.Pay commissions when a buyer defaults
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 buyer directly at closing
- b.Any cooperating salesperson
- c.The Recovery Fund
- d.The principal broker with whom the salesperson is affiliated✓
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.