Arkansas Real Estate License AREC Licensing and Regulations 4 — Questions and Answers
Question 1: An Arkansas broker who wishes to operate as a sole proprietor must:
- Register with AREC as an individual broker (Correct answer)
- Form a corporation first
- Obtain a branch office license
- Have at least two active salespersons
Correct answer: Register with AREC as an individual broker
A sole-proprietor broker must register with AREC as an individual broker and is personally responsible for all transactions.
Question 2: Under Arkansas regulations, which of the following must be kept in a real estate firm's transaction file?
- Copy of the buyer's credit report
- All written offers and counteroffers (Correct answer)
- Lender's approval letter
- Agent's commission agreement with the MLS
Correct answer: All written offers and counteroffers
Arkansas requires that all written offers and counteroffers be retained in the transaction file for the required record-keeping period.
Question 3: How many hours of continuing education must an Arkansas real estate licensee complete per renewal cycle?
- 6 hours
- 12 hours
- 18 hours (Correct answer)
- 24 hours
Correct answer: 18 hours
Arkansas licensees must complete 18 hours of approved continuing education per two-year renewal cycle.
Question 4: An Arkansas real estate licensee who advertises a property must ensure that the advertisement:
- Lists the exact commission rate
- Includes the supervising broker's license number
- Clearly identifies the brokerage name (Correct answer)
- Discloses the listing price agreed to by the seller
Correct answer: Clearly identifies the brokerage name
All advertising must clearly identify the brokerage (firm) name so consumers know which company is responsible.
Question 5: In Arkansas, a licensee who wishes to place a 'For Sale' sign on a property must first:
- Obtain written permission from the city zoning board
- Have written authorization from the property owner (Correct answer)
- File the listing with AREC
- Notify neighboring property owners
Correct answer: Have written authorization from the property owner
A licensee must have written authorization from the property owner before placing any signage on the property.
Question 6: Which statement about Arkansas reciprocal license agreements is CORRECT?
- Arkansas has reciprocity with all 50 states
- Arkansas does not recognize reciprocity from any state
- Arkansas has reciprocal agreements with specific qualifying states (Correct answer)
- Reciprocal licensees are exempt from all CE requirements
Correct answer: Arkansas has reciprocal agreements with specific qualifying states
Arkansas has reciprocal agreements with select states, and licensees from those states may apply under those specific terms.
Question 7: A non-resident seeking an Arkansas real estate license through reciprocity must:
- Retake the full national and state exam
- Pass only the Arkansas state portion of the exam (Correct answer)
- Submit proof of licensure in their home state and pay the fee
- Establish a physical Arkansas office first
Correct answer: Pass only the Arkansas state portion of the exam
Reciprocal applicants typically must pass only the Arkansas-specific portion of the licensing exam to demonstrate state law knowledge.
Arkansas Real Estate License AREC Licensing and Regulations 4
An Arkansas broker who wishes to operate as a sole proprietor must: