Arkansas Real Estate Broker Exam — All Questions
3 questions
The Arkansas Real Estate Recovery Fund is designed to:
- a.Pay AREC staff salaries
- b.Reimburse a member of the public who obtains an unsatisfied court judgment against a licensee for fraud or misconduct in a licensed transaction✓
- c.Provide grants to real estate schools
- d.Cover a broker's own business losses
The Arkansas Real Estate Recovery Fund reimburses consumers who obtain a final court judgment against a licensee for fraud, misrepresentation, or other misconduct in a licensed transaction and cannot collect it. It is a consumer-protection fund of last resort, not a source of staff pay, school grants, or coverage for a licensee's business losses.
When the Arkansas Real Estate Recovery Fund pays a claim caused by a licensee, that licensee's license is:
- a.Unaffected
- b.Upgraded to principal broker
- c.Suspended for exactly 30 days regardless of repayment
- d.Suspended or revoked until the licensee repays the fund with interest✓
A payment from the Recovery Fund on a licensee's behalf results in suspension or revocation of that licensee's license until the amount, plus interest, is repaid to the fund. This repayment requirement replenishes the fund and deters the misconduct that leads to claims.
AREC's authority under Arkansas license law includes the power to:
- a.Investigate complaints and revoke, suspend, or condition a license and impose sanctions for violations✓
- b.Award civil damages directly to a consumer
- c.Set the commission rate every broker must charge
- d.Issue building permits
AREC investigates complaints and may revoke, suspend, or place conditions on a license and impose sanctions for violations of the license law and rules. It cannot award civil damages, which is the role of the courts, cannot fix commission rates (an antitrust concern), and does not issue building permits.