AREC Authority and the Arkansas Recovery Fund
The Arkansas Real Estate Commission enforces the license law and administers a consumer recovery fund. This chapter covers AREC's disciplinary authority and the Recovery Fund's purpose and effect on licensees.
AREC Disciplinary Authority
AREC investigates complaints and may revoke, suspend, or condition a license and impose sanctions for violations of the license law and rules. It cannot award civil damages (a role for the courts), fix commission rates, or issue building permits.
Purpose of the Recovery Fund
The Arkansas Real Estate Recovery Fund reimburses consumers who obtain an unsatisfied final court judgment against a licensee for fraud, misrepresentation, or other misconduct in a licensed transaction. It is a last-resort consumer-protection fund, not a source of staff pay, school grants, or coverage for a licensee's business losses.
Effect on the Licensee
When the fund pays a claim caused by a licensee, that licensee's license is suspended or revoked until the amount, plus interest, is repaid. This replenishes the fund and deters the misconduct that leads to claims.