Arkansas Real Estate License Law
A licensee fails to disclose his or her agency relationship under the time and manner required by law. If found in violation, the Arkansas Real Estate Commission may impose a fine of
$1,000 per violation. The answer is $1,000 per violation. A licensee found guilty of nondisclosure may be disciplined with a $1,000 fine per violation.
What minimum balance must be maintained in the Arkansas Real Estate Recovery
$250,000 The answer is $250,000. A minimum balance of $250,000 must be maintained in the Arkansas Real Estate Recovery Fund.
What is the fee for a salesperson transferring to another broker?
$30
In an Arkansas time-share development, a sales agent must show evidence of a corporate bond in what amount?
$5,000 The answer is $5,000. The sales agent must show proof of a $5,000 corporate bond.
A time-share developer found guilty of a time-share law infraction can be fined up to and imprisoned for how long?
$5,000 and one year The answer is $5,000 and one year. Any developer or time-share agent who is found guilty of a time-share violation could be fined up to, and not exceeding, $5,000, be imprisoned in state prison up to one year, or both.
The maximum compensation that will be paid from the Arkansas Real Estate Recovery Fund for the acts of any one licensee or any group of related claims is
$50,000. The answer is $50,000. The maximum compensation that will be paid from the Arkansas Real Estate Recovery Fund under such circumstances is $50,000.
In Arkansas, what is the maximum amount due for a filing fee of a time-share interval project?
$500 The answer is $500. The time-share developer must file an application and pay a $300 filing fee plus $5 for each 25 intervals, not to exceed the sum of $500.
Once a licensee has been terminated, the principal broker must notify the Arkansas Real Estate Commission within
7 days. The answer is 7 days. Within seven days after termination of a licensee, a principal broker shall notify the Arkansas Real Estate Commission and return the license and pocket card of the terminated licensee to the commission.
Which of the following is a legal activity?
A broker may maintain a minimum balance of personal funds in a trust account if so required by the bank to avoid service charges. The answer is a broker may maintain a minimum balance of personal funds in a trust account if so required by the bank to avoid service charges. Unless the contract terms are specific, the broker may not give the buyer the earnest money back unless the seller has given prior written approval for the return of that earnest money. With the absence of contract authorization and the funds being disputed between the parties, the broker shall see that the funds are interplead into court of competent jurisdiction. The broker may only keep up to six months' worth of funds in an escrow account for trust account service charges and must present true representation of any property to avoid intentional or unintentional misrepresentation.
Which of the following is TRUE if a broker establishes an account to hold money belonging to others?
All checks, deposit slips, and bank statements must include the words "escrow" or "trust" as part of the account name. The answer is all checks, deposit slips, and bank statements must include the words "escrow" or "trust" as part of the account name. The account must be clearly labeled as "trust" or "escrow" to identify that the money in the account belongs to other people and not the broker. The broker does not have to open a new account for each earnest money received; however, the broker must keep careful records to accurately account for all funds.
What records maintained by the principal broker does the investigative staff of the Arkansas Real Estate Commission have power to investigate?
All records in connection to real estate transactions The answer is all records in connection to real estate transactions. The investigative staff of the commission has the power to investigate fully all records, bank accounts, company business records, and accounts of any licensee for the purpose of protecting the public. Any licensee denying access to those records is in violation of the license law and regulations.
In Arkansas, which of the following is a requirement for obtaining a broker's license?
Being of good moral character The answer is being of good moral character. In Arkansas, the broker applicant must provide three character signatures. The broker applicant must be actively engaged as a licensed salesperson for a period of not less than 24 months within the previous 48-month period, immediately preceding the date of his or her application, and successfully complete 90 hours of approved real estate courses within 36 months of application. There is no requirement that the broker be GRI certified.
Who may receive compensation from the Arkansas Real Estate Recovery Fund?
Seller who pays a commission to a broker under false pretenses The answer is seller who pays a commission to a broker under false pretenses. A seller who paid a broker under false pretenses may receive compensation from the real estate recovery fund. Brokers are not entitled to receive funds.
What are the three types of agency recognized in Arkansas?
Seller, buyer, and disclosed dual The answer is seller, buyer, and disclosed dual. Arkansas recognizes single agency, such as representing the seller or the buyer, as well as dual agency, as long as both parties agree.
When do real estate salesperson's licenses expire in Arkansas?
December 31 of each year The answer is December 31 of each year. Arkansas real estate licenses, with both active and inactive status, expire on December 31 of each year. Real estate salespeople and brokers must renew their licenses by September 30 of each year.
The purchaser of a time-share interval questions the validity of the public offering statement. What is the statute of limitations within which a suit can be filed?
Four years after contract date The answer is four years after contract date. In a judicial proceeding where the accuracy of the public offering statement is an issue, the purchaser has four years after the contract date of purchase to file suit.
What must a licensee do with the real estate pocket card upon termination of employment with a real estate broker?
Give it to the broker The answer is give it to the broker. Upon termination, a licensee's pocket card must be promptly delivered to the broker so the broker can send it to the Arkansas Real Estate Commission.
Which is TRUE of a broker's price opinion under Arkansas real estate rules?
It may be issued to a potential seller for the purpose of obtaining a listing. The answer is it may be issued to a potential seller for the purpose of obtaining a listing. A broker's price opinion may be used by a seller in deciding whether to list their home with a licensee. It may not be used as the primary basis to determine the value of the buyer's principal residence for the purpose of a loan origination of a residential mortgage, the words "marker value" may not be used in the opinion, and licensees may charge for preparing one.
In Arkansas, which of the following agreements does NOT have to be in writing to be enforceable?
Month-to-month rental The answer is month-to-month rental. In Arkansas, exclusive employment (agency) agreements with either sellers or buyers must be in writing. Such agreements that are "open" agreements are highly recommended to be in writing but not required to be by law. Real estate contracts between a seller and a buyer must be in writing to be enforceable. While month-to-month rentals should be in writing where an agent is involved, they can still be introduced into a court of law for enforcement, provided they are for one year or less in length.
A licensee who allows his or her license to expire has how long to reinstate the license without monetary penalty?
No renewal "free" time The answer is no renewal "free" time. If the license expires, there is no "free" time in which to renew.
In Arkansas, a preprinted offer to purchase that is intended to become a binding contract must have which of the following headings?
No special heading The answer is no special heading. No particular heading is required; however, a licensed Arkansas attorney must approve all preprinted forms prior to use.
Regarding listing agreements in Arkansas, which of the following, if contained in a listing agreement, could result in a disciplinary action against the licensee?
No specific termination date The answer is no specific termination date. Listings must have a defined termination date. State law does not address the issue of whether to include a broker protection clause, and commission rates are always negotiable between the broker and the client and not controlled by any level of government.
In Arkansas, who of the following would need to be a licensed real estate broker or salesperson?
Person who employs fewer than three apartment leasing agents The answer is person who employs fewer than three apartment leasing agents. A person who employs even one apartment leasing agent will have to be licensed as a real estate broker or salesperson. Partners selling their own property are not required to have a real estate license. Anyone holding power of attorney has the authority to sign the principal's name and does not have to have a real estate license. A resident manager is specifically exempted from licensing requirements.
Which of the following actions are legal and NOT a violation of license law?
Placing a For Sale sign in front of a house after asking the seller's permission and receiving written permission to do so The answer is placing a For Sale sign in front of a house after asking the seller's permission and receiving written permission to do so. A broker must always have permission from the current owner (seller or buyer) before erecting a sign. A broker may not encourage a decision based on religious grounds and must make full disclosures of all conditions of promotion.
What is the name of the Arkansas Supreme Court ruling that requires all licensees to use attorney-approved contracts and real estate forms?
Pope County Bar Association v. Suggs (1981) The answer is Pope County Bar Association v. Suggs (1981). Pope County Bar Association v. Suggs (1981) states that all real estate forms used by licensees shall be approved by an Arkansas attorney. Jones v. Mayer was a 1968 Supreme Court decision reaffirming the Civil Rights Act of 1866 that prohibited all racial discrimination. Regulation Z requires the lender to provide all finance charges to the borrower. RESPA requires the lender to provide to the borrower the actual loan costs that he or she will incur and other consumer protections.
In Arkansas, who is generally responsible for ensuring that the closing is handled in exact accordance with the contract?
Principal broker The answer is principal broker. It is generally the responsibility of the principal broker of the listing firm to ensure that the real estate closing is conducted properly and in exact accordance with the agreement of the buyer and the seller.
The owner property disclosure report may be delivered to the prospective buyer in any of the following situations EXCEPT
after closing. The answer is after closing. Delivering the owner property disclosure report after closing is too late. The report can be delivered and acknowledged at any time prior to closing, so long as both the buyer and the seller agree through written consent.
A real estate company has entered into agency agreements with both a seller and a buyer. The seller and the buyer have signed a dual agency consent agreement. Legally, the salesperson may disclose
all information regarding property issues, even if not considered by the seller as good selling points. The answer is all information regarding property issues, even if not considered by the seller as good selling points. Legally, an agent must always disclose property issues. However, personal issues are not to be disclosed under dual agents. The dual agent may not disclose to the buyer that the seller will accept less than the listing price, nor may the dual agent disclose to the seller that the buyer will pay more than the offering price.
In a dual agency situation, a broker may collect a commission from both the seller and the buyer if
both parties give their written informed consent to the dual compensation. The answer is both parties give their written informed consent to the dual compensation. Both parties must give their informed consent to the dual compensation. The broker does not need a permission certificate to offer dual representation.
If a broker tells a lender that the sales price on a property is something above its actual sales price, the
broker can lose his or her license and may be fined and imprisoned by the proper authorities. The answer is broker can lose his or her license and may be fined and imprisoned by the proper authorities. A broker must not suggest two different prices for a contract. Brokers are not to be parties to dual contracts for the purpose of obtaining a larger loan.
A broker manages three properties for different owners. One property is in need of emergency repair, but there is not enough money in the management account of that property to cover the cost. The broker borrows money from the escrow account of one of the other properties to make the repairs. Regarding this activity, the
broker is in violation of regulations for improperly handling escrow funds. The answer is broker is in violation of regulations for improperly handling escrow funds. The broker is in violation of regulations for improperly handling escrow funds by using funds from one party's property to make repairs on another party's property.
A broker wants to list a property but is getting a lot of competition from other brokers who also would like to list it. The broker offers the seller the following inducement to sign his listing agreement: "I'll buy your property if it doesn't sell in 90 days." With this inducement, the broker must do all of the following EXCEPT A) show the seller evidence of the broker's financial ability to buy the property. B) show the seller written details of the plan before any contract of guaranty is signed. C) market the property as if no special agreement existed. D) buy the property at the agreed figure at any time during the 90 days.
buy the property at the agreed figure at any time during the 90 days. The answer is buy the property at the agreed figure at any time during the 90 days. The broker stated "after 90 days," so the broker is not obligated to buy it until the 90-day expiration. The broker must indicate all terms and special considerations so that the seller is fully informed and not surprised. The broker must be able to substantiate his offer to purchase.
The listing agreement with a seller has expired, and the seller lists with a different brokerage firm. The original listing agent now has a buyer interested in the seller's property. The original listing agent
cannot disclose to the buyer offers received on the seller's property while it was listed with that agent. The answer is cannot disclose to the buyer offers received on the seller's property while it was listed with that agent. The original listing agent is now free to represent the buyer. The original agent no longer has an agency relationship with the seller. However, confidential information must remain confidential forever. Agents must always disclose information about the physical condition of the property if the agent knows of any defects.
A broker received an accepted contract and earnest money deposit. Under Arkansas law, the broker should
deposit the money in an existing special escrow account in which all earnest money received from buyers may be held at the same time. The answer is deposit the money in an existing special escrow account in which all earnest money received from buyers may be held at the same time. The broker may deposit this buyer's funds into an escrow account containing money from other customers and clients. Detailed record keeping is required.
Each resident principal broker must do all of the following EXCEPT A) maintain a definite place of business. B) designate a territory in which licensees can operate. C) keep a special escrow account for monies belonging to clients. D) have a permanent sign on the place of business.
designate a territory in which licensees can operate. The answer is designate a territory in which licensees can operate. Arkansas license law prohibits the establishment of geographical boundaries within a specific area. The law does require that the broker maintain a definite place of business, maintain a special escrow account, and have a permanent business sign.
Under Arkansas real estate law, the licensee who must be employed in real estate full-time is a(n)
designated executive branch broker. The answer is designated executive branch broker. The designated executive branch broker must be a full-time broker and may not be gainfully employed in a non-real-estate-related field.
Every Arkansas real estate principal broker must do all of the following EXCEPT A) keep transaction records for three years. B) display a sign at his or her office location. C) reconcile trust accounts monthly. D) employ at least one salesperson.
employ at least one salesperson. The answer is employ at least one salesperson. There is no requirement that a broker must employ a salesperson; there are many one-person offices. All trust account bank statements must be reconciled in writing at least monthly and balance to the total amount of funds deposited in the account. All records shall be maintained by the principal broker for a period of three years and shall be open to inspection by and made available to the investigative staff of the commission. A principal broker shall maintain a place of business and shall display a permanently attached sign bearing the name of his or her real estate company.
When a licensed broker changes his or her place of business,
his or her license may be revoked if the Arkansas Real Estate Commission is not promptly notified and proper filings and procedures followed. The answer is his or her license may be revoked if the Arkansas Real Estate Commission is not promptly notified and proper filings and procedures followed. The Arkansas Real Estate Commission must be notified promptly of a change in place of business and fulfill all transfer or other requirements governing such changes.
A buyer wishes to enter into a buyer agency relationship. On the particular house that the buyer wants to look at, the seller did not give written dual agency authorization to the realty firm. In this situation, the agent can
inform the buyer the showing cannot occur without written consent from the seller. The answer is inform the buyer the showing cannot occur without written consent from the seller. Both the buyer and seller must have given written consent to dual representation.
A broker lists a small office building. Because the property is in excellent condition and produces a good, steady income, the broker's salesperson has decided to purchase it as an investment. If the broker's salesperson wishes to buy this property, the salesperson must
inform the owner in writing that the salesperson is a licensee before making an offer. The answer is inform the owner in writing that the salesperson is a licensee before making an offer. The salesperson will have to inform the owner in writing that the salesperson is a licensee before making the offer. The salesperson does not have to resign or notify the Arkansas Real Estate Commission, and definitely should not use a third party.
A person who owns a real estate firm conducting real estate business for others for a fee
is not required to hold a real estate license provided the firm is staffed with a licensed principal broker. The answer is is not required to hold a real estate license provided the firm is staffed with a licensed principal broker. A person is not required to hold a real estate license or act as the principal broker to own a real estate firm conducting real estate business for others for a fee, provided the firm is staffed with a licensed principal broker.
Under Arkansas real estate law, the licensee who is ultimately responsible for all brokers and agents employed with the firm is the
principal broker. The answer is principal broker. The principal broker is ultimately responsible for all brokers and agents employed with the firm regardless of the number of office locations owned by that firm.
An Arkansas broker applied to renew his broker's license on October 1. Based on the requirement that licensee renewal requests are to be submitted no later than September 30, which of the following would be TRUE?
The broker will be subject to monetary penalties and compliance with additional requirements in order to avoid his or her license being inactive during the subsequent licensing period. The answer is the broker will be subject to monetary penalties and compliance with additional requirements in order to avoid his or her license being inactive during the subsequent licensing period. Any renewal application for an Arkansas salesperson or broker filed after September 30 of any year will require the licensee to pay additional amounts and meet all other state requirements in order to avoid not being able to have an active license for the forthcoming year beginning January 1. Licenses are issued for the calendar year; therefore, the failure to submit the renewal request by September 30 does not affect the current year license status.
A broker delivered $500 cash to ABC Escrow Closing Service per the instructions of the buyer and the seller. The day of closing, the escrow's closing agent called to tell the broker the $500 was missing. Who is responsible?
The buyer and seller would be responsible. The answer is the buyer and seller would be responsible. The broker is solely responsible and accountable for all trust funds received by the firm and is held responsible for funds delivered to an escrow agent selected by the principal broker. However, the broker is not responsible for funds delivered to an escrow agent solely selected by the parties to a transaction. Cash is an acceptable form of earnest money.
Once the Arkansas Real Estate Commission has accepted a complainant's request for an appeal hearing, the appellant pays for the appeal costs. How many days, if any, after notification of the amount due must the appellant pay the fees?
Within 30 days The answer is within 30 days. The Arkansas Real Estate Commission staff determines the associated costs of preparing the records for the commission's review, and the appellant has 30 days to pay the fees after notification of the amount due.
The purpose of the Arkansas Real Estate Recovery Fund is to
provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction. The answer is provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction. The purpose of the recovery fund is to provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction.
Arkansas license law requires that
a broker make the real estate business his or her major activity if employing agents. The answer is a broker make the real estate business his or her major activity if employing agents. Anybody can remove the signs from the subject property. Arkansas license law states that a broker engaged in any field other than real estate is presumed to be gainfully employed in a non-real estate related field. The presumption may be overcome by proof that such employment is in a "like-kind" field to real estate. No law requires that real estate appraisers look at a property prior to listing. Licensees must take six hours of continuing education each year in order to have their license renewed active.
A violation of the license law by an unlicensed person is
a felony. The answer is a felony. Any person acting as real estate broker or salesperson who does not hold an active, valid Arkansas real estate license or who otherwise violates any provision of the licensee law shall be guilty of Class D felony.
Under Arkansas real estate rules, a broker's price opinion could NOT be used by
a lender as the basis in determining the value of the buyer's residence for the purpose of obtaining a loan. The answer is a lender as the basis in determining the value of the buyer's residence for the purpose of obtaining a loan. A broker's price opinion may not be used as the primary basis to determine the value of the buyer's principal residence for the purpose of a loan origination of a residential mortgage loan secured by the residence.
Licensees who have had their licenses suspended or revoked by the Arkansas Real Estate Commission will have their names and case information
published in a newspaper of statewide circulation. The answer is published in a newspaper of statewide circulation. The Arkansas Real Estate Commission will publish a list of those names of licensees who have had their licenses suspended or revoked, together with the conditions relative to their violations. Such information is generally provided to all current licensees but is accessible to the public upon request.
A client agreeing to waive a licensee's required duties under the Arkansas License Act must sign a waiver of duties statement that contains all of the following EXCEPT A) a list of other licensees who will perform the waived duties on behalf of the client. B) a list of the fiduciary duties required of all licensees under the Act. C) a list of the duties being waived. D) signatures of the client and licensee.
a list of other licensees who will perform the waived duties on behalf of the client. The answer is a list of other licensees who will perform the waived duties on behalf of the client. The License Act requires that the waiver statement include the wording "...I also understand that in a proposed real estate transaction, no other real estate licensee will perform the waived duties,..."
If found guilty of a time-share violation, the developer or agent can be charged with
a misdemeanor. The answer is a misdemeanor. Any time-share violation may be considered a misdemeanor.
In Arkansas, when an agent is listing a home and asks the seller to complete a property condition disclosure, the agent
should advise the seller to answer truthfully about any problems or conditions known to the seller. The answer is should advise the seller to answer truthfully about any problems or conditions known to the seller. The agent should advise the owner to answer truthfully and honestly about any problems with the property. The seller should not mark "unknown" if problems are known. While potential purchasers are highly encouraged to obtain a professional home inspection, sellers are still responsible for disclosing hidden or latent defects.
All of the following must appear in a written listing agreement EXCEPT A) a street address for the property. B) the proposed gross sales price of the property. C) a complete legal description of the property being sold. D) the time duration of the listing.
a street address for the property. The answer is a street address for the property. While street addresses help locate properties for showing, they do not constitute legal description. Street addresses are subject to change by postal departments or city or county officials. Likewise, they would not be definable as to the boundaries of the property to identify the location of improvement. Listings must have an asking price, and definable broker listing agreements must have definite beginning and termination dates.
The Arkansas Real Estate Commission finds a sales agent guilty of an infraction of the rules and regulations. The person is notified 30 days before the hearing. The licensee may do any of the following EXCEPT A) go and hear the charges. B) accept the commission's findings and not go. C) send an attorney to the hearing. D) show up at a hearing with a surprise key witness.
show up at a hearing with a surprise key witness. The answer is show up at a hearing with a surprise key witness. The licensee may not show up with a surprise key witness. The licensee must petition (at least ten days prior to the hearing) the Arkansas Real Estate Commission as having a witness wishing to appear. The salesperson may send his or her attorney, not go and accept the findings, or go and hear the charges.
A brokerage firm wishes to change its office location. The principal broker is responsible for
submitting a picture of the new office sign, returning the old licenses and pocket cards, and including the $30 transfer fee per licensee. The answer is submitting a picture of the new office sign, returning the old licenses and pocket cards, and including the $30 transfer fee per licensee. If a principal broker moves or changes a sign of which a photograph has been filed with the commission, the principal broker shall notify the commission office immediately in writing of that new location and furnish a photograph of the new sign.
An unlicensed person has received a fee from a salesperson for spotting bids at a real estate auction. All of the following are true EXCEPT
that the Arkansas Real Estate Commission may impose a jail sentence not to exceed one year. The answer is that the Arkansas Real Estate Commission may impose a jail sentence not to exceed one year. The Arkansas Real Estate Commission has authority only over licenses. It may not impose a prison sentence. The commission may revoke the license, impose a fine of up to $1,000, and place restrictions on the licensee.
All of the following statements regarding the Arkansas Real Estate Commission are true EXCEPT
the Arkansas Association of REALTORS® appoints the members of the commission. The answer is the Arkansas Association of REALTORS® appoints the members of the commission. The REALTORS® association does not appoint the Arkansas Real Estate Commission members. The commission enforces the rule. An executive director administers the operations of the commission. The exams are written under the supervision of the commission and administered by an independent testing company.
What BEST describes independent dealing under the Arkansas real estate act?
A licensee selling their own property without the supervision of the principal broker or the firm name The answer is a licensee selling their own property without the supervision of the principal broker or the firm name. Dealing without the broker's knowledge is considered independent dealing and is grounds for the loss of license.
How are members of the Arkansas Real Estate Commission's board selected?
Appointed by the governor The answer is appointed by the governor. The members of the board are appointed by the governor and approved by the senate.
In Arkansas, the real estate license law is administered by the
Arkansas Real Estate Commission. The answer is Arkansas Real Estate Commission. The Arkansas Real Estate Commission administers the real estate license law. HUD is a federal government agency supervising housing issues, not real estate licensees. The Arkansas Association of REALTORS® is a trade association. All of its members must have a real estate license, but not all licensees are REALTORS®. The Fair Housing Commission would deal only with potential violations pertaining to discrimination issues relative to its existence.
Which of the following licensee designations in Arkansas may NOT supervise other licensees? A) Associate broker B) Executive branch broker C) Principal broker D) Executive broker
Associate broker The answer is associate broker. An associate broker is a person licensed as a broker under the supervision of a principal broker but has no supervisory authority over any licensee.
Broker Wendy represents the seller of real estate. Broker Patricia from another firm wishes to show Wendy's listings. When must agency representation be disclosed to broker Wendy if broker Patricia is representing the buyer as a buyer's agent?
At first contact with the agent of the seller The answer is at first contact with the agent of the seller. Such disclosures must be made at first contact with the seller or seller's agent.
A salesperson is convicted on May 1 of possession and distribution of a controlled substance. Both the crime and the conviction took place out of state. On June 15, the broker calls the Arkansas Real Estate Commission and leaves a message informing the commission of the conviction. Based on these facts, which of the following is TRUE?
Both the salesperson and the broker are in violation of not properly notifying the Arkansas Real Estate Commission. The answer is both the salesperson and the broker are in violation of not properly notifying the Arkansas Real Estate Commission. The Arkansas Real Estate Commission must be notified in writing within 30 days of the violation of the commission regulations.
Who must have a real estate license to perform the following activities?
Company that for a fee (not commission) matches individuals from different parts of the country who want to exchange properties and assists them in doing so The answer is company that for a fee (not commission) matches individuals from different parts of the country who want to exchange properties and assists them in doing so. Anyone who matches individuals for a fee or commission requires a real estate license. Court-appointed individuals are not required to have a real estate license. The resident manager is specifically exempt from being required to have a real estate license.
A licensee is representing the seller solely in a real estate transaction. When must the agent disclose his or her agency relationship to the prospective buyer?
In a timely manner The answer is in a timely manner. The licensee should disclose to the buyer his or her agency relationship with the seller in a timely manner under the particular circumstances, so as to avoid possibly eliciting or receiving information that otherwise would need to remain confidential.
What are the procedures that a salesperson must follow when deciding to terminate his or her affiliation with an employing broker?
Nothing, because the broker is responsible for notifying the Arkansas Real Estate Commission of the change The answer is nothing, because the broker is responsible for notifying the Arkansas Real Estate Commission of the change. There are no procedures required of the salesperson; the broker is responsible for notifying the Arkansas Real Estate Commission.
Who should complete the owner property disclosure report?
Seller The answer is seller. Only the current owner of record should fill out the owner property disclosure report. Any agent involvement subjects the agent to potential legal liabilities for errors.
In an attempt to close the deal, a time-share broker tells the purchaser that the development will drastically increase in value within the next 45 days. Which of the following BEST describes the broker's statement?
The law prohibits predicting or implying specific or immediate increases in the price or value of time-shares. The answer is the law prohibits predicting or implying specific or immediate increases in the price or value of time-shares. According to license law, a time-share broker shall not make a prediction of immediate increases in price or value.
A buyer has just entered into a contract to buy a condominium unit from a person who originally bought the unit from the developer and has lived there for the past ten years. The new buyer has a right to cancel the contract within how many days?
The new buyer does not have the right to cancel a signed contract in this situation. The answer is the new buyer does not have the right to cancel a signed contract in this situation. A buyer has the right to rescind the contract only when purchasing from the original developer in a time-share development, and then within five days of acceptance of the offer.
What information about a property would a licensee most likely be expected to have knowledge and disclose to buyers under the Arkansas real estate license law?
The presence of lead on an older property The answer is the presence of lead on an older property. Environmental hazards affecting the property that are required by law must be disclosed. However Arkansas real estate license law does not require a licensee to disclose information about stigmatized property, groundwater hazards, or to track, discover, or research the status or location of sex offenders for the benefit of the client.
If a specific time period for delivering earnest money is not specified in an offer to purchase real estate, how long after acceptance of the offer must earnest money be delivered to the firm and deposited into a trust account?
Three days The answer is three days. Earnest money specified in any offer for real estate must be delivered to the firm that has the property listed and deposited into a trust account within three days following acceptance of offer.
If a broker violates the Arkansas license law, resulting in monetary damage to a consumer, what is the latest date on which the injured party may file a lawsuit that may result in a collection from the real estate recovery fund?
Three years after the alleged violation The answer is three years after the alleged violation. The injured party must take action within three years from the alleged violation.
A salesperson had his Arkansas salesperson license revoked. When will the salesperson be eligible to reapply for licensing?
Two years The answer is two years. A licensee whose license has been revoked shall be eligible to apply for a new license two years from the date of revocation.
A licensed salesperson may hold a concurrent license with more than one Arkansas broker under which of the following circumstances?
Under no circumstances The answer is under no circumstances. A salesperson may be licensed with only one broker.
The selling broker wishes to accompany the listing broker on the offer presentation. May this occur?
Yes, but only with the listing agent's permission The answer is yes, but only with the listing agent's permission. The selling agent may accompany the listing agent only with the listing agent's permission. The selling agent may not contact the seller without prior permission from an authorized representative of the listing firm.
A real estate company has entered into agency agreements with both a seller and a buyer. The buyer is interested in making an offer on the seller's property. Can this occur?
Yes; it can occur if both the buyer and the seller give their written consent to dual agency. The answer is yes; it can occur if both the buyer and the seller give their written consent to dual agency. If both parties agree in writing, then the brokerage can represent both parties. Agency is about relationships; how the agent is paid is a separate issue.
An associate broker
has met the qualifications of a broker. The answer is has met the qualifications of a broker. An associate broker is a person who has met all the requirements for a broker's license but has not chosen to apply to become the principal broker. A licensed principal broker must hold the license of an associate broker.
Buyer-brokerage contracts in Arkansas
are required by law to be in writing if they are exclusive in nature. The answer is are required by law to be in writing if they are exclusive in nature. The buyer-brokerage contract is an employment contract and must be in writing if exclusive in nature. Open buyer-brokerage agreements are not required to be in writing but are highly recommended as set forth in Regulation 10. Buyer-brokerage contracts are definitely regulated, just as listing agreements are regulated.
Routine services that do NOT create an agency relationship are referred to as
ministerial acts. The answer is ministerial acts. Only informational services are considered "ministerial" and may be performed by a nonlicensee. Only a licensee may perform services that are transactional, routine brokerage, and even customer service level.
Adverse material facts regarding a property of which a licensee would be expected to have knowledge and disclose under the Arkansas Real Estate Commission do NOT include
events that might have stigmatized the property. The answer is events that might have stigmatized the property. A licensee must disclose information involving any known facts about a property that would affect its value or desirability. However, Arkansas law does not require real estate licensees to disclose information about stigmatized property.
In Arkansas, brokers and salespeople who are NOT lawyers may
fill in the blanks in a preprinted real estate contract that has been preapproved by an Arkansas attorney. The answer is fill in the blanks in a preprinted real estate contract that has been preapproved by an Arkansas attorney. Real estate licensees who are not lawyers must be careful to avoid any appearance of the unauthorized practice of law. Under the Pope County Bar. v. Suggs case before the Arkansas Supreme Court, licensees are only authorized to fill in the blanks in a preprinted form that has been preapproved by an Arkansas attorney. Furthermore, a licensee cannot make a charge for filling out such forms, cannot give legal advice, and must be in an agency capacity for at least one of the parties.
Upon obtaining a listing, a broker or licensed salesperson is obligated to
give the seller signing the listing a legible, signed, true, and correct copy. The answer is give the seller signing the listing a legible, signed, true, and correct copy. The licensee is obligated to give the seller signing the listing a legible, signed, true, and correct copy. Other brokers are not required to participate in marketing. Advertising or numbering the files is not required.
Regarding the use of trade names or insignias of membership in a real estate organization by Arkansas licensees,
licensees may not use them unless they are members of the organization. The answer is licensees may not use them unless they are members of the organization. The Arkansas Real Estate Regulations provide that a licensee shall not use terms such as REALTOR®, Realtist, or any other trade name or insignia of membership of any real estate organization of which the licensee is not a member.
In Arkansas, an applicant for a real estate license must do all of the following EXCEPT
live within the state of Arkansas. The answer is live within the state of Arkansas. An applicant does not have to live in Arkansas. There are many out-of-state Arkansas licensees. In Arkansas, applications for any real estate license must be completed prior to taking the written exam. The applicant must be at least 18 years of age and provide three character reference signatures.
The Arkansas Real Estate Commission
makes and enforces the rules by which all real estate licensees must abide. The answer is makes and enforces the rules by which all real estate licensees must abide. The legislature enacts law; the Arkansas Real Estate Commission is authorized to write rules and regulations that have the force of law. The exam questions are written by an independent testing service and reviewed by the Arkansas Real Estate Commission. The testing service administers the exams.
Regarding duties and licensing in Arkansas, personal real estate assistants
may insert factual information into form contracts under the employing broker's supervision and approval. The answer is may insert factual information into form contracts under the employing broker's supervision and approval. Secretarial work, such as inserting factual information into form contracts under the employing broker's supervision and approval, does not require licensing, because it is done under the supervision of the broker. Personal assistants may be licensed in order to perform more services for the licensee who hired them, but they do not have to be licensed to work as an assistant. Only licensed personal assistants may independently host open houses.
A broker has former clients interested in seeing a new listing that the broker's firm has just listed. In this situation, the broker
may want to consider discussing dual agency with the buyers. The answer is may want to consider discussing dual agency with the buyers. The broker may wish to discuss dual agency with the buyers (former clients or customers may have disclosed information that would be expected to remain confidential and not disclosed to the seller, such as seller needs, motivations, strategies for selling, and financial situation). Arkansas does not allow facilitator position or split agency arrangements.
In Arkansas, an exclusive-right-to-represent contract with a buyer
must be indicated as such in the buyer agency agreement. The answer is must be indicated as such in the buyer agency agreement. Buyers can enter into an exclusive-right-to-represent agreement, but it must be clearly identified. Both the buyer and the broker must agree to the contract.
A real estate salesperson decides to rent his or her own residence without using a broker. When doing so, the salesperson
must disclose the name of his or her employing broker's real estate firm. The answer is must disclose the name of his or her employing broker's real estate firm. A licensee may not advertise any property, including the licensee's own residence, for sale or rent, without including the name of the firm with which that licensee is licensed.
A broker who wishes to place a For Sale sign on a listed property must first
obtain the written consent of the owner of the property. The answer is obtain the written consent of the owner of the property. After obtaining written permission from the owner of the property, the broker may erect a For Sale sign on the property.
A property management agreement is a written contract between the
owner and property manager The answer is owner and property manager. A property management agreement is a written contract between the owner and the property manager.
The Arkansas Real Estate Commission laws and regulations are an expression of the
police power of the state. The answer is police power of the state. The Arkansas Real Estate Commission has the use of laws and regulations to mandate and enforce those laws not only to its licensee members but also to preserve the health, safety, and public welfare.
A buyer prospect is interested in seeing a house listed with the real estate company but does not wish to enter into a buyer agency agreement. A salesperson from the real estate company can show the buyer an in-house listing if the
salesperson provides the buyer with an agency disclosure that the real estate company represents the seller. The answer is salesperson provides the buyer with an agency disclosure that the real estate company represents the seller. The salesperson must indicate that the agency represents the seller. This is not dual agency, since the buyer does not wish representation.
The members of the Arkansas Real Estate Commission are designated by
the governor. The answer is the governor. The governor makes the appointments, but they must be ratified through the senate. The Arkansas Association of REALTORS® is a trade association, and neither it nor the public elects the commission's members.
All of the following provisions are included in the Arkansas Real Estate Commission's rules regarding listing agreements EXCEPT A) the listing agreement must be accompanied by a qualified expert's report of the property's condition. B) the listing agreement must be in writing and signed by both the broker and the seller. C) the listing agreement must state the exact fee the broker will earn. D) the seller must receive a true copy of the listing agreement after signing it.
the listing agreement must be accompanied by a qualified expert's report of the property's condition. The answer is the listing agreement must be accompanied by a qualified expert's report of the property's condition. The listing does not have to be accompanied by a qualified expert's report of the property condition. It must state the exact fee the broker will earn (either a flat fee or a percentage) and must be in writing and signed by both the broker and the seller. The seller must receive a true copy of the listing agreement after signing.
All funds received by a broker in connection with an accepted contract on behalf of his or her principal must be deposited into an escrow or trust account within
three days of obtaining all signatures for the contract. The answer is three days of obtaining all signatures for the contract. All trust funds shall be deposited either into the broker's trust or escrow account within three days of obtaining all signatures for the contract.
A broker's license was revoked by the Arkansas Real Estate Commission. The broker's salespeople may
transfer to another broker. The answer is transfer to another broker. If a broker's license was revoked, any licensed salesperson working under such principal broker is entitled to transfer to a new principal broker upon compliance with the proper provisions of the Arkansas license law regulations.
A principal broker who receives trust funds must either maintain a separate trust account or have an escrow agent hold trust funds in their
trust account. The answer is trust account. According to statute, a principal broker who receives trust funds must either maintain a separate trust account or must have an escrow agent hold trust funds in their trust account.
The Arkansas Real Estate Commission has the right to revoke or suspend an agent's license for all of the following EXCEPT A) when an agent advertises in the newspaper without including his or her affiliation with a real estate company. B) when an agent is working as an undisclosed dual agent. C) when an agent receives a $500 cash finder's fee and fails to disclose this to his or her broker. D) when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired.
when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired. The answer is when an agent has written permission from the property owner to leave a real estate sign on the property, even once the listing agreement has expired. Only with the owner's authorization may a real estate sign remain up after the listing expiration. This is often done with the buyer following closing, whereby the sign is allowed to remain with "sold" rider on top to attract additional seller-clients. Dual agency must always be disclosed and have the written informed consent of all parties. All monies received must pass through the principal broker. The failure to identify the firm name within an advertisement constitutes a violation of law known as "blind advertising."