Arkansas Real Estate License Law Flashcards

Arkansas Real Estate License Law Flashcards 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 EXCEPTA)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,..." The Arkansas Real Estate Commission has the right to revoke or suspend an agent's license for all of the following EXCEPTA)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." 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 dateThe 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.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 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 EXCEPTA)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.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 yearThe 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 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 dateThe 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 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 brokerThe 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 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.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,