Duties and Authority of the Real Estate Commission
Area I of the Pearson VUE outline is 4% of the unified broker exam. It covers AREC's general powers, its power to examine records, how it investigates, what it may impose as discipline, and the Real Estate Recovery Fund.
General Powers
Ark. Code Ann. § 17-42-201 puts five members on the Commission, appointed by the Governor to three-year terms: three who have been licensed brokers or salespersons for at least five years, plus two who are not in the business, one representing consumers and one aged sixty or older representing the elderly. Section 17-42-203(a) lets the Commission 'do all things necessary and convenient for carrying into effect the provisions of this chapter' and promulgate rules; § 17-42-205 gives it subpoena power for both investigations and hearings.
Examination of Records and Investigations
Regulation 10.7(b)(3) makes the principal broker's three-year records 'open to inspection by and made available to the investigative staff of the Commission at the firm's office or other location designated by the Commission,' and Regulation 10.8(g)(3) says the same for trust-fund records including bank reconciliations. Section 17-42-312(a)(1) lets the Commission investigate on its own motion, and requires it to investigate on a verified written complaint that makes out a prima facie case. Section 17-42-314(b) sets the limit: no investigation or disciplinary hearing unless the complaint is filed or the investigation begins within three years of the actions complained of, except where the license was obtained by false or fraudulent representation.
Disciplinary Authority
Section 17-42-312(a)(4) gives the Commission a menu: suspension, revocation, or denial of a license; a penalty of not more than $1,000 per violation; required education; required reexamination; conditions or restrictions on the license; or restitution and damages. Section 17-42-312(d) adds a lighter citation track handled by the executive director — up to $100 for missed annual or post-licensure education, up to $250 for practicing on an expired license or for an advertising violation — contestable within thirty days. A licensee whose license is revoked may reapply after two years under § 17-42-311(c).
The Real Estate Recovery Fund
Arkansas does not run its fund on unsatisfied court judgments. Under § 17-42-406, the Commission in a disciplinary hearing first finds whether a violation occurred, then determines the aggrieved party's damages, then directs the licensee to pay. Only if that amount is unpaid thirty days after the final order, and the order is not appealed, does the Commission pay from the fund — capped at $25,000 for any one violation or continuing series, and $75,000 in total for the acts of any one licensee or for a group of related claims. Section 17-42-407 limits awards to actual, compensatory damages: no punitive damages, no interest. Section 17-42-409 then subrogates the Commission to the claimant's rights and immediately suspends the licensee's license until the fund is reimbursed with interest not exceeding ten percent per annum.
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State-specific details
State exam facts
- State regulator
- Arkansas Real Estate Commission (AREC)
- Exam vendor
- Pearson VUE
- Prelicensing education
- 60 classroom hours within the prior 36 months, 45 of them the Commission-developed Broker Pre-License Course
- Passing score
- 70 (scaled)
- Scored questions
- 120
Who regulates real estate brokers in Arkansas?
The Arkansas Real Estate Commission (AREC) licenses principal brokers, executive brokers, associate brokers, and salespersons under the Arkansas Real Estate License Law, Ark. Code Ann. § 17-42-101 et seq., and the Commission Regulations. AREC contracts with Pearson VUE to deliver the licensing exams at test centers across Arkansas and at select military installations.
What education and experience do I need before the Arkansas broker exam?
AREC Regulation 4.1(a)(2) requires not less than 60 classroom hours completed within the 36 months immediately preceding the application, of which at least 45 must be in a course developed by the Commission — the Broker Pre-License Course, not merely a Commission-approved course. Ark. Code Ann. § 17-42-303(b)(1) adds the experience: an active, bona fide apprenticeship holding a valid salesperson license from AREC, or a salesperson or broker license from another state, for not less than 24 months within the previous 48-month period. Section 17-42-303(b)(2) allows the Commission to waive that experience for an applicant who has held an active broker license for at least 18 months or has 24 months of acceptable real-estate-related experience.
How is the Arkansas broker exam structured?
Unlike most states, Arkansas gives brokers a single UNIFIED examination rather than a national portion plus a state portion. Pearson VUE handbook #090400 (rev. June 2026): "The Arkansas Unified Real Estate Broker examination covers both general knowledge concepts, as well as Arkansas-specific content. The examination consists of 120 scored items and ten pretest (unscored) items." Because it is one-part comprehensive it cannot be divided into portions for reexamination — fail it and you retake the whole thing. The content outline effective December 1, 2025 publishes ten areas as percentages: Commission duties 4%, licensure 10%, other Arkansas statutes 6%, federal law 10%, broker operations 18%, agency 12%, property characteristics 10%, valuation 5%, contracts and financing 15%, property management 10%.
What score do I need, and how long do I get?
The Commission set a passing SCALED score of 70. That is not 70% correct: the handbook states the scaled score reported "is neither the number of questions answered correctly nor the percentage of questions answered correctly." Numeric scores are reported only to candidates who fail. The handbook publishes no per-exam time limit — its Quick Reference says only that you will have "two to four hours" to complete your exam, a range covering all five Arkansas real estate and property management exams. The exam fee is $75, paid to Pearson VUE at reservation.
Sources: https://www.pearsonvue.com/content/dam/VUE/vue/en/documents/publications/090400.pdf, https://arec.arkansas.gov/wp-content/uploads/AR-Real-Estate-License-Law-April-2026.pdf, https://arec.arkansas.gov/wp-content/uploads/2024-Commission-Regulations-04092025-LKA.pdf, https://arec.arkansas.gov/licensing/exam-information/
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