Arkansas Real Estate Broker Exam — All Questions
5 questions
Real estate licensing in Arkansas is administered by the:
- a.Arkansas Realtors Association
- b.Arkansas Secretary of State
- c.Arkansas Real Estate Commission (AREC)✓
- d.Arkansas Insurance Department
The Arkansas Real Estate Commission (AREC) administers the Arkansas License Law and the Commission's rules, licensing and disciplining brokers and salespersons. The Realtors Association is a private trade group, and the Secretary of State and Insurance Department have no real estate licensing authority.
Arkansas license law recognizes three license classes. Which class holds the ultimate responsibility for a real estate firm and its trust account?
- a.Salesperson
- b.Principal broker✓
- c.Executive broker acting alone
- d.Associate broker in training
Arkansas licenses salespersons, executive brokers, and principal brokers. The principal broker is the one responsible 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 ultimate responsibility for the office and its trust funds.
Under Arkansas license law, a salesperson or executive broker may lawfully accept compensation for a real estate transaction:
- a.Directly from the buyer in cash
- b.From any party who offers it
- c.Directly from the seller's attorney
- d.Only from the principal broker with whom they are associated✓
Arkansas requires that affiliated licensees be paid only through their principal broker; they may not accept compensation 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.
How often must an Arkansas real estate license be renewed, and what is required?
- a.Annually, with completion of AREC-approved continuing education✓
- b.Every five years, with no education
- c.Only once, because the license is permanent
- d.Every ten years, with a new examination
Arkansas real estate licenses are renewed annually, and licensees must complete AREC-approved continuing education (including required hours) to renew. This yearly cycle keeps Arkansas licensees current on law changes and is stricter than the two-year cycles used in many other states.
An Arkansas principal broker must maintain the firm's transaction records and trust-account records:
- a.Only until the transaction closes
- b.For 90 days
- c.For the period required by AREC rules and make them available for Commission inspection✓
- d.Indefinitely at the salesperson's home
Arkansas principal brokers must retain transaction and trust-account records for the retention period set by AREC rules and make them available for inspection by the Commission. Proper recordkeeping is a core supervisory duty; failing to keep or produce records is a common basis for discipline against the principal broker.