ARKANSAS REAL ESTATE EXAM PREP Flashcards

ARKANSAS REAL ESTATE EXAM PREP Flashcards A newly licensed sales agent wishes to conduct his real estate business in the name of his LLC instead of his own name to protect his personal assets from potential litigation.

AREC issues licenses to persons only but allows brokers to pay licensees in the name of any legal business entity name.What must be included in all real estate advertising by licensees in the State of Arkansas?The name of the firm where the principal broker conducts his business All principal brokers must maintain a place of business, display a permanently attached sign and send AREC a photograph of The sign and the part of the building where the sign is attached When is the last date an agent can report their 18 classroom hours of required post license education to the AREC?July 31st to hold a rela estate license in Arkansas an applicant mustSupply a valid taxpayer ID number how long can you leave your real estate license on inactive status before u lose ur license?Indefinitely Who is responsible and accountable for all actions and statements of a real estate firm's licensee?Principal broker Arkansas licensees are generally required to conduct all real estate related business through what?The business name of the licensee's principal broker Thye mission of the AREC is toProtect the public health, safety and welfare Licensees are required by AR real estate license law to replenish the recovery fund if the minimum balance of the fund drops below what amount?

250000

If an agent marries and moves in with their new partner, what further action is required by the agent to remain compliant with AREC regulations?the agent must promptly report their name and address change to the AREC Bo holds an active associate broker's license in Arkansas.Bo may supervise who?No other licensee, including himself How long does an applicant for Arkansas real estate license have to pass the real estate exam after applying to take the exam?

• year

All rent monies and security deposits received by a licensee on that licensee's own property must be placed into the principals brokers trust account unless The licensee provides the principal broker with a written agreement with the renter permitting the licensee to keep security deposits in the licensee's own separate account All members of the AREC areConfirmed by the Senate Arkansas time share agent registrations and annual license renewals including evidence of a surety bond of 10k must be filed with arec no later than June 1 AREC issues licenses toBrokers and agents only How many hours of Continued education will you have to complete to reactivate your inactive license?30 hours

What is the minimum time frame set by AREC regulations for a licensee to deposit trust funds received pertaining to a real estate transaction?No later than 3 days after the contract has been signed by the parties to the contract unless the 3rd day is a Saturday Upon passing teh arkansas real estate license exam, an applicant must send the score report and fees to AREC within 90 days Who may own and operate a real estate firm in AR? Anyone, proved all business is conducted thru a principal broker Three of the AREC members musthave been licensed in Arkansas for the last 5 years Who is responsible and accountable for all receivables, deposits to and disbursements from the trust or escrow account regardless of who maintains the account Principal broker An unlicensed assistant may perform which of the following real estate related activities?Perform clerical duties not requiring a real estate license Salespersons and brokers are exempt from the annual CE requirement for...the first renewal of their original license The arkansas license law allows all licenses to perform all function proper to a principal broker except Exercising supervisory authority and responsibility What amount of money must each sales agent pay into the AREC recovery fund upon the agent's initial licensure?$25 To open a real estate office in Arkansas, a principal broker must first Obtain approval for the name of the real estate firm The memhbers of the AREC areAppointed by the governor of the state of Arkansas The AREC executive director may NOT exercise rule-making and adjudicative powers The Investigations section of the AREC is responsible for investigating complaints from consumers for alleged violations of the Real estate education law, time share law and real estate license law Under what circumstances would an unlicensed office manager be allowed to show a rental unit to a prospective tenant in a property managed by the office manager employer, a principal broker?When under written instructions from the owner What is the minimum level of education an applicant for a real estate license in Arkansas must complete?60 Classroom hours of pre license education What evidence is required of all applicants for Arkansas real estate licensure Good reputation for honesty, trustworthiness, integrity, and professional conduct sufficient to safeguard the public's interests If you fail to renew your license what happens? You must reapply as an original applicant for licensure in Arkansas Trust or escrow funds may be withdrawn and disbursed from a trust account upon written authorization from the parties to the transaction or order by a judge in a court of competent jurisdiction Principal brokers are required by AR license law to have a trust or escrow account for holding other ppls money pertaining to real estate transactions. Who may maintain the trust of escrow account?Principal broker or third-party escrow agent only

What must an applicant do after passing the state licensure exam to receive an active salesperson license in Arkansas?Secure affiliation with a licensed principal broker within 90 days In AR, a licensed attorney may conduct real estate activities when The lawyer is performing his duties as an attorney at law for a divorce or estate client The recovery fund may be used to pay for real estate education and actual damage claims to consumers caused by licensees in violation of the law Which of the following would not be exempt from the requirement to hold a real estate license?A sellers unlicensed cousin marketing the sellers home as an attorney in fact in exchange for one dollar

HOW LONG DOES A PRINIPAL BROKER HAVE OT

REPORT A LICENSEEE LEAVING THE FIRM?

7 DAYS

Who may insitute criminal proceedings against a person practicing real estate without a license in Arkansas?Any licensed person residing in the state of Arkansas What happens if you don't report your 18 classroom hours to the AREC in time?Your license is placed on inactive status until agent completes and reports hour to AREC What are the Continued education requirements for the annual real estate license renewal in Arkansas?

• hours of CE unites completed and reported to AREC by

midnight Dec 31st If an agent decides to invest in real estate for themselves by purchasing older homes, rehabbing them and then reselling them, what is the AREC's legal position on this activity?Permitted provided Tom discloses his present or future ownership in writing prior to signing any agreements The term of an AREC commissioner appointment is how many years?Three years All advertisements of Agent owned property for sale or rent must include a banner or statement with the words "agent owned" if THE arec finds AN UNLICENSED INDIVIDUAL HAS

BEEN LISTING A PROPERTY FOR A FEE, THE

COMMISSIONERS MAY...

IMPOSE A CIVIL PENALTY OF NO MORE THAN $5K

ADN MAY REQUIRE REIMBURSEMENT OF ALL

COMPENSATION

Arkansas law requires trust or escrow account to be non-interest bearing. What is the exception to this law?Interest bearing trust accounts are permitted when required by law or regulation of any government agency or during brokers volunteer participation in the interest on real estate broker's trust account program Who investigates and disciplines real estate licensees who have violated real estate licensing laws and regulations?The AREC(ARKANSAS REAL ESTATE COMMISSION