AREC Rules and Regulations Flashcards
7 cards from real Arkansas Real Estate License practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 AREC Rules and Regulations flashcards as text
Under AREC regulations, which entity has the authority to establish the Real Estate Recovery Fund?
Answer: The Arkansas Legislature through statute
The Real Estate Recovery Fund is established by Arkansas statute, not by AREC rule, to compensate consumers harmed by licensee misconduct.
A licensee is found guilty of blockbusting. Under AREC rules and federal fair housing law, this means they:
Answer: Induced panic selling by representing that a protected class was moving into the neighborhood
Blockbusting is inducing owners to sell by representing that protected-class members are moving in, which constitutes an illegal discriminatory practice.
AREC's Rules and Regulations require that a net listing agreement:
Answer: Is prohibited in Arkansas
Net listings are prohibited in Arkansas because they create an inherent conflict of interest between the broker and the seller.
Which of the following best describes AREC's 'designated agent' rule?
Answer: One licensee in a dual-agency firm is designated to represent only the buyer and another only the seller
Designated agency allows one licensee within the same brokerage to represent the buyer and a different licensee to represent the seller, limiting the dual-agency conflict.
Under AREC rules, when must a property management agreement be in writing?
Answer: Always — all property management agreements must be in writing
All property management agreements must be in writing under AREC regulations to clearly define the scope of authority and compensation.
A broker's license is placed on probation by AREC. During the probationary period, the broker:
Answer: May continue practicing subject to AREC-imposed conditions
Probation allows the broker to continue practicing real estate but under specific conditions set by AREC as a form of monitored discipline.
Under AREC rules, what is the maximum prison term that can result from practicing real estate without a license in Arkansas?
Answer: 1 year
Practicing real estate without a license in Arkansas is a misdemeanor punishable by up to one year imprisonment and a fine.