Arkansas Real Estate License Flashcards
7 cards from real Arkansas License Test practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Arkansas Real Estate License flashcards as text
Under Arkansas law, how long must a broker retain transaction records after a real estate sale closes?
Answer: 3 years
Arkansas real estate law requires brokers to retain all transaction-related records for a minimum of three years.
A licensed salesperson in Arkansas receives a referral fee directly from an out-of-state broker. This is:
Answer: Prohibited; payment must go through the salesperson's sponsoring broker
In Arkansas, a salesperson may only receive compensation through their sponsoring broker; they cannot accept fees directly from third parties.
Which of the following is an example of 'misrepresentation' under Arkansas real estate law?
Answer: Stating a home has a new roof when it is 10 years old
Stating a false material fact—such as the age of the roof—constitutes misrepresentation, which is a violation of Arkansas license law.
In Arkansas, the Real Estate Recovery Fund is designed to:
Answer: Compensate consumers harmed by licensee misconduct after other remedies are exhausted
The Recovery Fund compensates consumers who have suffered actual monetary losses due to a licensee's fraudulent or dishonest conduct after civil remedies have been exhausted.
An Arkansas licensee who wishes to sell their own property must:
Answer: Disclose their licensed status in any advertising and to all parties
When a licensee sells property in which they have an ownership interest, they must clearly disclose their licensed status to all parties in all advertisements and communications.
Under Arkansas license law, a 'designated broker' (also called principal broker) is best described as:
Answer: The individual broker responsible for all licensees operating under the brokerage
The designated (principal) broker is legally responsible for supervising all affiliated salespersons and associate brokers within the brokerage.
A buyer in Arkansas makes an offer that the seller accepts, but the buyer later wants to back out without a valid contingency. What typically happens to the earnest money?
Answer: It may be forfeited to the seller as liquidated damages
When a buyer defaults without a valid contingency, the earnest money may be forfeited to the seller as liquidated damages per the terms of the purchase agreement.