Arkansas Real Estate License AREC Rules and Regulations 2 — Questions and Answers
Question 1: Under AREC regulations, how long must a broker retain transaction records after a sale closes?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
Arkansas real estate licensees must retain transaction records for a minimum of 3 years after closing.
Question 2: When must a licensee disclose to a buyer that they have a personal financial interest in a property being sold?
- Only at closing
- Before any offer is written (Correct answer)
- After the offer is accepted
- Only if the buyer asks
Correct answer: Before any offer is written
AREC rules require disclosure of a licensee's personal financial interest before any offer is written to avoid conflicts of interest.
Question 3: Which of the following actions would constitute commingling under AREC rules?
- Depositing earnest money in a dedicated escrow account
- Placing client funds in the broker's personal checking account (Correct answer)
- Maintaining separate ledgers for each client
- Depositing rental proceeds in the property management trust account
Correct answer: Placing client funds in the broker's personal checking account
Commingling occurs when client funds are mixed with a licensee's personal or business operating funds.
Question 4: A salesperson receives a referral fee from a title company for sending clients their way. Under AREC rules, this is:
- Permitted if disclosed to the client (Correct answer)
- Permitted without any disclosure requirement
- Prohibited unless the salesperson is also a title agent
- Always prohibited under any circumstances
Correct answer: Permitted if disclosed to the client
Referral fees from settlement service providers are permissible under AREC rules only when fully disclosed to the client.
Question 5: How many hours of continuing education must an Arkansas licensee complete each renewal cycle?
- 6 hours
- 12 hours (Correct answer)
- 18 hours
- 24 hours
Correct answer: 12 hours
Arkansas requires 12 hours of approved continuing education per two-year renewal cycle.
Question 6: Under AREC rules, a licensee who changes their employing broker must:
- Continue working until the old broker releases them
- Notify AREC and have their license transferred before continuing to practice (Correct answer)
- Simply inform clients of the change and continue working
- Wait 30 days before beginning work at the new brokerage
Correct answer: Notify AREC and have their license transferred before continuing to practice
A licensee must have their license formally transferred to the new broker with AREC notification before conducting real estate activity.
Question 7: Which statement best describes AREC's authority regarding unlicensed assistants?
- Unlicensed assistants may show property if supervised by a licensee
- Unlicensed assistants may negotiate lease terms on behalf of licensees
- Unlicensed assistants may perform only ministerial and administrative tasks (Correct answer)
- Unlicensed assistants require no AREC registration
Correct answer: Unlicensed assistants may perform only ministerial and administrative tasks
AREC rules limit unlicensed assistants to purely administrative and ministerial tasks that do not require a license.
Arkansas Real Estate License AREC Rules and Regulations 2
Under AREC regulations, how long must a broker retain transaction records after a sale closes?