Arkansas Real Estate License AREC Licensing and Regulations 3 — Questions and Answers
Question 1: Which type of Arkansas real estate license allows a licensee to supervise other agents?
- Salesperson license
- Associate broker license (Correct answer)
- Provisional broker license
- Temporary license
Correct answer: Associate broker license
An associate broker license allows the licensee to supervise other agents when designated by the principal broker.
Question 2: An Arkansas real estate license applicant who has been convicted of a felony will:
- Be automatically denied a license
- Have their application reviewed by AREC on a case-by-case basis (Correct answer)
- Be granted a provisional license only
- Be required to wait 10 years before applying
Correct answer: Have their application reviewed by AREC on a case-by-case basis
AREC reviews felony convictions on a case-by-case basis and may deny, grant, or conditionally approve an application.
Question 3: In Arkansas, the Real Estate Recovery Fund is funded by:
- State tax revenue
- Fines collected from licensee violations
- License application and renewal fees (Correct answer)
- Federal HUD grants
Correct answer: License application and renewal fees
The Arkansas Real Estate Recovery Fund is funded through a portion of license application and renewal fees.
Question 4: What is the maximum amount a single claimant can recover from the Arkansas Real Estate Recovery Fund?
- $15,000
- $25,000
- $50,000 (Correct answer)
- $75,000
Correct answer: $50,000
A single claimant may recover a maximum of $50,000 from the Arkansas Real Estate Recovery Fund.
Question 5: Which of the following does NOT need to be disclosed on an Arkansas real estate license application?
- Prior license revocation in another state
- Pending criminal charges
- Current employment outside real estate (Correct answer)
- Bankruptcies filed in the past 5 years
Correct answer: Current employment outside real estate
Outside employment unrelated to real estate does not need to be disclosed on an Arkansas license application.
Question 6: Under Arkansas law, a real estate license is considered 'expired' if the licensee fails to:
- Complete CE before the deadline
- Renew and pay the renewal fee by the expiration date (Correct answer)
- Notify AREC of address changes
- Complete a background check at renewal
Correct answer: Renew and pay the renewal fee by the expiration date
A license expires when the licensee fails to submit the renewal fee by the expiration date, regardless of CE completion.
Question 7: A person who acts as a real estate agent without a valid Arkansas license is subject to:
- A civil fine only
- Criminal prosecution and fines (Correct answer)
- Loss of earned commissions only
- A mandatory education course
Correct answer: Criminal prosecution and fines
Practicing real estate without a license in Arkansas is a criminal offense subject to prosecution and fines.
Arkansas Real Estate License AREC Licensing and Regulations 3
Which type of Arkansas real estate license allows a licensee to supervise other agents?