AREC Rules and Regulations Flashcards

Under AREC regulations, how long must a broker retain transaction records after a sale closes?

Answer: 3 years

Arkansas real estate licensees must retain transaction records for a minimum of 3 years after closing.

When must a licensee disclose to a buyer that they have a personal financial interest in a property being sold?

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.

Which of the following actions would constitute commingling under AREC rules?

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.

A salesperson receives a referral fee from a title company for sending clients their way. Under AREC rules, this is:

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.

How many hours of continuing education must an Arkansas licensee complete each renewal cycle?

Answer: 12 hours

Arkansas requires 12 hours of approved continuing education per two-year renewal cycle.

Under AREC rules, a licensee who changes their employing broker must:

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.

Which statement best describes AREC's authority regarding unlicensed assistants?

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.