Arkansas Real Estate License Arkansas Real Estate License AREC Rules and Regulations Questions and Answers 3 — Questions and Answers
Question 1: Under AREC rules, what is the required timeframe for a broker to deposit earnest money into a trust account after acceptance of a contract?
- Immediately upon receipt
- Within 3 business days of contract acceptance (Correct answer)
- Within 5 business days of contract acceptance
- Within 10 business days of contract acceptance
Correct answer: Within 3 business days of contract acceptance
AREC requires brokers to deposit earnest money into their trust account within 3 business days of the contract being accepted by all parties.
Question 2: What disciplinary action can AREC take if a licensee is convicted of a felony?
- Issue a written warning only
- Suspend or revoke the license (Correct answer)
- Require additional continuing education only
- Impose a fine but cannot affect the license status
Correct answer: Suspend or revoke the license
AREC has the authority to suspend or revoke a real estate license upon a licensee's felony conviction.
Question 3: Which entity is responsible for approving pre-license education courses in Arkansas?
- The Arkansas Department of Education
- The National Association of Realtors
- The Arkansas Real Estate Commission (AREC) (Correct answer)
- The local Board of Realtors
Correct answer: The Arkansas Real Estate Commission (AREC)
AREC is the sole authority responsible for approving all pre-license and continuing education courses for real estate licensees in Arkansas.
Question 4: How many members serve on the Arkansas Real Estate Commission?
- 5
- 7
- 9 (Correct answer)
- 11
Correct answer: 9
The Arkansas Real Estate Commission is composed of 9 members who are appointed by the Governor.
Question 5: Under AREC regulations, what happens to a real estate license if the licensee fails to renew before the expiration date?
- The license is automatically extended for 30 days
- The license expires and the individual must cease all real estate activity (Correct answer)
- The license converts to an inactive referral-only status
- The licensee receives a 6-month grace period to renew without penalty
Correct answer: The license expires and the individual must cease all real estate activity
If a licensee fails to renew before expiration, the license expires and the individual must immediately stop practicing real estate.
Question 6: What is the primary purpose of the Real Estate Recovery Fund administered by AREC?
- To fund AREC's annual operating budget
- To provide grants for first-time homebuyers
- To compensate members of the public who suffer financial losses due to licensee misconduct (Correct answer)
- To reimburse brokers for uncollected commissions
Correct answer: To compensate members of the public who suffer financial losses due to licensee misconduct
The Real Estate Recovery Fund exists to compensate consumers who have suffered actual financial damages caused by the wrongful acts of a licensed real estate professional.
Arkansas Real Estate License Arkansas Real Estate License AREC Rules and Regulations Questions and Answers 3
Under AREC rules, what is the required timeframe for a broker to deposit earnest money into a trust account after acceptance of a contract?