Arkansas Real Estate License License Law and Disclosures 2 — Questions and Answers
Question 1: Under Arkansas law, how long must a licensee retain transaction records?
- 1 year
- 3 years (Correct answer)
- 5 years
- 7 years
Correct answer: 3 years
Arkansas requires licensees to retain transaction records for a minimum of 3 years.
Question 2: A buyer's agent in Arkansas who also represents the seller in the same transaction must obtain:
- Only the buyer's written consent
- Only the seller's written consent
- Written informed consent from both parties (Correct answer)
- Verbal consent from both parties
Correct answer: Written informed consent from both parties
Dual agency requires written informed consent from both the buyer and seller before proceeding.
Question 3: Which entity administers the Arkansas Real Estate License Law?
- Arkansas Department of Commerce
- Arkansas Real Estate Commission (Correct answer)
- Arkansas Secretary of State
- Arkansas Attorney General
Correct answer: Arkansas Real Estate Commission
The Arkansas Real Estate Commission (AREC) is the state agency responsible for administering real estate licensing laws.
Question 4: A salesperson license applicant in Arkansas must complete how many hours of pre-license education?
- 30 hours
- 45 hours
- 60 hours (Correct answer)
- 90 hours
Correct answer: 60 hours
Arkansas requires 60 hours of approved pre-license education for salesperson applicants.
Question 5: In Arkansas, which of the following actions would constitute commingling of funds?
- Depositing earnest money in a trust account
- Depositing client funds in the broker's personal bank account (Correct answer)
- Keeping separate ledgers for each client
- Wiring earnest money to the title company at closing
Correct answer: Depositing client funds in the broker's personal bank account
Commingling occurs when client funds are mixed with the licensee's personal or business operating funds.
Question 6: When must an Arkansas licensee provide an agency disclosure to a consumer?
- At the time of closing
- Before providing substantive real estate assistance (Correct answer)
- Only when a listing agreement is signed
- After an offer has been accepted
Correct answer: Before providing substantive real estate assistance
Arkansas law requires agency disclosure before the licensee provides substantive real estate assistance to any consumer.
Question 7: An Arkansas broker who wants to operate a real estate business under a trade name must:
- File the name with the IRS
- Register the trade name with AREC (Correct answer)
- Obtain approval from the local county clerk only
- No special action is required
Correct answer: Register the trade name with AREC
Trade names (assumed names) used by brokers must be registered with the Arkansas Real Estate Commission.
Arkansas Real Estate License License Law and Disclosures 2
Under Arkansas law, how long must a licensee retain transaction records?