Free Arkansas Real Estate License AREC Licensing and Regulations Questions and Answers — Questions and Answers
Question 1: An Arkansas real estate salesperson's license expires annually on what date?
- The anniversary of their licensure date.
- September 30th.
- December 31st. (Correct answer)
- January 1st.
Correct answer: December 31st.
According to the Arkansas Real Estate Commission (AREC), all real estate licenses in Arkansas, for both salespersons and brokers, expire on December 31st of each year. While the deadline to submit renewal applications without penalty is September 30th, the actual expiration date is the end of the calendar year.
Question 2: A principal broker in Arkansas receives an earnest money check from a buyer on a Friday afternoon for a property with a fully executed contract. According to AREC regulations, by what day must these funds be deposited into the firm's trust account?
- The following Monday.
- Within 24 hours of receipt.
- Within three business days.
- No later than the following Wednesday. (Correct answer)
Correct answer: No later than the following Wednesday.
AREC Regulation 10.8(g)(1) states that all trust funds delivered to the principal broker must be deposited into the trust account, delivered to an escrow agent, or deposited pursuant to a written agreement no later than three (3) days following the execution of the contract. Since the check was received on Friday, the three days would be Saturday, Sunday, and Monday, but since banks are typically closed on the weekend, the deposit must be made by the end of the day on Wednesday.
Question 3: Which of the following is a requirement for all visual advertising created by an Arkansas real estate licensee?
- The licensee's personal phone number must be the most prominent contact information.
- The name of the real estate firm must be included and be as large or larger than the licensee's name. (Correct answer)
- The property's list price must be clearly stated in all advertisements.
- A photo of the licensee must be included on all yard signs.
Correct answer: The name of the real estate firm must be included and be as large or larger than the licensee's name.
AREC advertising rules are designed to ensure the public is not misled. A key rule is that all advertising must clearly and conspicuously include the name of the real estate firm with which the agent is licensed. The firm's name must be displayed in a type size that is equal to or greater than the licensee's or team's name to avoid any confusion about who is providing the brokerage services.
Question 4: An active Arkansas real estate salesperson wants to renew their license. What is the annual continuing education (CE) requirement they must meet?
- 10 hours, with 2 hours in contract law.
- 6 hours of electives and 1 hour of safety. (Correct answer)
- 7 hours, with at least 3 hours focused on ethics.
- 12 hours, with a mandatory 3-hour legislative update course.
Correct answer: 6 hours of electives and 1 hour of safety.
To renew an active real estate license in Arkansas, licensees must complete seven (7) hours of continuing education annually. The specific required topics can change from year to year, but for 2024, it included a mandatory one-hour course on safety. The remaining hours are typically elective courses approved by AREC.
Question 5: A new salesperson, licensed on March 10th, must complete their 18-hour post-license education by what deadline?
- Within the first year of licensure.
- Before their first license renewal.
- By the end of September of the same year.
- By the end of the month, six months after their initial license date. (Correct answer)
Correct answer: By the end of the month, six months after their initial license date.
The Arkansas Real Estate Commission requires new salespersons to complete an 18-hour post-license course. This must be completed by the end of the month, six months after the date the individual was initially licensed. For a licensee issued a license on March 10th, the deadline would be the end of September of that year.
Question 6: Under what circumstances may a principal broker in Arkansas maintain their own personal funds in a designated trust account?
- To cover potential overdrafts from disputed transactions.
- Never; commingling of any kind is strictly prohibited.
- To pay for office expenses directly from the account.
- To maintain a minimum balance required by the financial institution. (Correct answer)
Correct answer: To maintain a minimum balance required by the financial institution.
While commingling funds is illegal, AREC regulations provide a specific exception. A principal broker is permitted to keep a small amount of their own money in a trust account when it is necessary to meet the bank's requirements for maintaining a minimum balance to keep the account open. These funds must be clearly identified as the broker's deposit.
Free Arkansas Real Estate License AREC Licensing and Regulations Questions and Answers
An Arkansas real estate salesperson's license expires annually on what date?