Arkansas Real Estate License AREC Licensing and Regulations 2 — Questions and Answers
Question 1: How long does an inactive Arkansas real estate license remain valid before it expires?
- 1 year
- 2 years (Correct answer)
- 5 years
- Indefinitely with annual fee
Correct answer: 2 years
An inactive Arkansas real estate license remains valid for up to 2 years, after which the licensee must meet reactivation requirements.
Question 2: Which of the following actions requires a real estate license in Arkansas?
- Selling your own home
- Auctioning real estate for compensation (Correct answer)
- Managing your own rental property
- Inheriting and selling inherited property
Correct answer: Auctioning real estate for compensation
Auctioning real estate for compensation on behalf of others requires an Arkansas real estate license.
Question 3: When must an Arkansas real estate licensee notify the AREC of a change of employing broker?
- Within 10 days (Correct answer)
- Within 30 days
- Within 60 days
- At the next license renewal
Correct answer: Within 10 days
Licensees must notify the AREC within 10 days of any change in employing broker.
Question 4: What is the Arkansas Real Estate Commission's primary purpose?
- To promote real estate sales statewide
- To protect the public interest in real estate transactions (Correct answer)
- To increase commission rates for agents
- To regulate property tax assessments
Correct answer: To protect the public interest in real estate transactions
The AREC's primary purpose is to protect the public interest by regulating real estate professionals.
Question 5: A salesperson licensee in Arkansas who wishes to become a broker must have at least how many months of active experience?
- 12 months
- 24 months
- 36 months (Correct answer)
- 48 months
Correct answer: 36 months
Arkansas requires at least 36 months (3 years) of active salesperson experience to qualify for a broker license.
Question 6: Which of the following is NOT a ground for AREC license revocation in Arkansas?
- Misrepresentation of property condition
- Commingling client funds
- Charging a commission higher than standard rates (Correct answer)
- Failing to disclose a known material defect
Correct answer: Charging a commission higher than standard rates
Arkansas has no set 'standard' commission rate — commission is negotiable, and charging a higher rate is not grounds for revocation.
Question 7: An Arkansas licensee who receives a written complaint from the AREC must respond within:
- 10 days
- 20 days (Correct answer)
- 30 days
- 60 days
Correct answer: 20 days
Arkansas licensees must respond in writing to AREC complaints within 20 days of receipt.
Arkansas Real Estate License AREC Licensing and Regulations 2
How long does an inactive Arkansas real estate license remain valid before it expires?