Arkansas Real Estate License AREC Rules and Regulations Questions and Answers

Question 1

According to AREC regulations, which of the following is TRUE regarding advertising for a real estate agent in Arkansas?

Accepted Answer

The real estate firm's name must be included and be of equal or greater prominence than the agent's name.

Answer

AREC Regulation 10.5 and advertising guidelines state that all advertising must include the name of the real estate firm. Furthermore, the firm's name must be displayed in equal or greater prominence than any licensee or team name to avoid public confusion.

Question 2

A principal broker in Arkansas receives an earnest money deposit from a buyer on a Friday afternoon. According to AREC rules, what is the LATEST the broker can deposit these funds into the trust account?

Accepted Answer

Within three business days following the execution of the contract.

Answer

AREC Regulation 10.8(g)(1) specifies that trust funds, such as earnest money, must be deposited into a trust account no later than three (3) days following the execution of a real estate contract by both the seller and buyer. The count typically refers to business days, not calendar days.

Question 3

What are the annual continuing education (CE) requirements for an active real estate salesperson to renew their license in Arkansas?

Accepted Answer

7 hours, including a mandatory 1-hour safety course.

Answer

All active licensees in Arkansas are required to complete seven hours of continuing education annually. This must include a specific one-hour course on safety. The remaining six hours can be comprised of other required or elective courses as determined by the Commission for that year.

Question 4

An agent represents a seller in a transaction. At what point must the agent disclose their agency relationship to a potential buyer who is not represented by another agent?

Accepted Answer

At the first substantive contact with the potential buyer.

Answer

AREC Regulation 8.1 dictates that a seller's agent must disclose their agency relationship to a potential buyer at the first contact. While this can initially be oral, it must be confirmed in writing before the buyer signs any transaction-related documents like an offer.

Question 5

A buyer and seller are in dispute over the disbursement of earnest money held in a principal broker's trust account. The real estate contract does not specify how to handle such a dispute. According to AREC rules, the broker should:

Accepted Answer

Hold the funds until a written agreement between the parties is received or a court order is issued.

Answer

A principal broker cannot disburse trust funds in a manner inconsistent with the contract. When a dispute arises and the contract is silent on the matter, the broker is prohibited from acting as a judge. They must hold the funds in the trust account until the parties provide a mutual written release or until they receive an order from a court of competent jurisdiction.

Arkansas Real Estate License Practice Test

Arkansas Real Estate License Practice Test

Arkansas Real Estate License AREC Rules and Regulations Questions and Answers