Arkansas Real Estate License License Law and Disclosures 3

Question 1

Under Arkansas law, a licensee's failure to disclose a known material defect to a buyer is considered:

Accepted Answer

Misrepresentation or fraud

Answer

Knowingly concealing a material defect constitutes misrepresentation or fraud and is a violation of Arkansas license law.

Question 2

What is the maximum fine the Arkansas Real Estate Commission can impose per violation?

Accepted Answer

$2,500

Answer

AREC can impose a civil penalty of up to $2,500 per violation of Arkansas real estate license law.

Question 3

A licensee in Arkansas who changes their home address must notify AREC within:

Accepted Answer

30 days

Answer

Arkansas licensees must notify AREC of a change of address within 30 days of the change.

Question 4

Which of the following is NOT a ground for license revocation or suspension under Arkansas law?

Accepted Answer

Belonging to a national real estate trade association

Answer

Membership in a trade association is not a violation; the other choices are recognized grounds for disciplinary action.

Question 5

In Arkansas, the term 'licensee' in the context of real estate law most specifically refers to:

Accepted Answer

Both brokers and salespersons holding a valid Arkansas license

Answer

Under Arkansas law, 'licensee' encompasses all individuals holding a valid real estate license, including both brokers and salespersons.

Arkansas Real Estate License Practice Test