License Law and Disclosures 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 License Law and Disclosures flashcards as text
Under Arkansas license law, a 'designated agent' is best described as:
Answer: A licensee appointed by the broker to represent one client exclusively in an in-house transaction
Designated agency allows a broker to appoint one licensee to represent the buyer and another to represent the seller when both are clients of the same brokerage.
Which disclosure is a seller's agent in Arkansas required to make to an unrepresented buyer?
Answer: That the agent represents the seller, not the buyer
A seller's agent must disclose to the unrepresented buyer that they represent the seller's interests, not the buyer's.
An Arkansas real estate licensee advertises a property without identifying their licensed status. This is:
Answer: A violation known as blind advertising
Advertising without disclosing licensed status or the brokerage name is called blind advertising and violates Arkansas license law.
Which of the following best describes the Arkansas Real Estate Recovery Fund?
Answer: A fund that compensates consumers harmed by licensee misconduct when a judgment cannot be collected
The Recovery Fund compensates consumers who obtain a court judgment against a licensee but are unable to collect from the licensee directly.
A broker in Arkansas accepts an earnest money deposit on Friday afternoon. By when must the funds be placed in a trust/escrow account?
Answer: Within 3 banking days
Arkansas requires earnest money to be deposited into an escrow or trust account within 3 banking days of receipt.
Under Arkansas law, a salesperson may receive compensation from:
Answer: Only their sponsoring broker
A salesperson may only receive compensation through their sponsoring/employing broker, never directly from a transaction party.
In Arkansas, a broker must keep trust account records for how many years?
Answer: 3 years
Arkansas requires brokers to maintain trust account records for a minimum of 3 years.