Arkansas Real Estate Salesperson Exam — All Questions
21 questions
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.
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).