Chapter 1 of 1535% of exam

Arkansas Real Estate License Law

Arkansas real estate practice is governed by the Arkansas License Law and AREC rules. This chapter covers the license classes, how affiliated licensees are paid, renewal, and recordkeeping.

License Classes

Arkansas licenses salespersons, executive brokers, and principal brokers. The principal broker holds ultimate responsibility for the firm, its licensees, and its trust account. An executive broker holds a broker-level license and may perform broker acts and supervise, but the principal broker carries final accountability for the office.

Compensation and Supervision

Affiliated salespersons and executive brokers may be paid only through their principal broker, never directly from buyers, sellers, or other parties. This channels accountability through the principal broker, who is responsible for the firm's transactions and trust funds.

Renewal and Records

Arkansas licenses renew annually with AREC-approved continuing education, a stricter cycle than many states. Principal brokers must retain transaction and trust-account records for the period AREC rules require and make them available for inspection. Poor recordkeeping is a common basis for discipline.

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