Arkansas Real Estate License AREC Rules and Regulations 2

Question 1

Under AREC regulations, how long must a broker retain transaction records after a sale closes?

Accepted Answer

3 years

Answer

Arkansas real estate licensees must retain transaction records for a minimum of 3 years after closing.

Question 2

When must a licensee disclose to a buyer that they have a personal financial interest in a property being sold?

Accepted Answer

Before any offer is written

Answer

AREC rules require disclosure of a licensee's personal financial interest before any offer is written to avoid conflicts of interest.

Question 3

Which of the following actions would constitute commingling under AREC rules?

Accepted Answer

Placing client funds in the broker's personal checking account

Answer

Commingling occurs when client funds are mixed with a licensee's personal or business operating funds.

Question 4

A salesperson receives a referral fee from a title company for sending clients their way. Under AREC rules, this is:

Accepted Answer

Permitted if disclosed to the client

Answer

Referral fees from settlement service providers are permissible under AREC rules only when fully disclosed to the client.

Question 5

How many hours of continuing education must an Arkansas licensee complete each renewal cycle?

Accepted Answer

12 hours

Answer

Arkansas requires 12 hours of approved continuing education per two-year renewal cycle.

Arkansas Real Estate License Practice Test