Arkansas Real Estate Licensing & Compliance Mastery Exam: License Law,
Principal & Executive Broker Duties, Associate & Salesperson Authority, Agency
Disclosure, Trust Accounts & Escrow Management, Post-Licensure Education,
Continuing Education, Recovery Fund, Enforcement & Disciplinary Procedures,
Time-Share Law, Auctions, Legal Compliance, Agency Relationships, Dual
Agency, Record-Keeping, Escrow & Trust Funds, Client Protection, Commission
Procedures, Licensing Exemptions, Criminal Background Checks, Advertising
Regulations, Earnest Money Handling, Broker Supervision, AREC Operations,
Licensing & Renewal Requirements, Post-License Education, Violation Penalties,
Judicial Proceedings, Buyer & Seller Rights, Auctioneer & Buyer's Premium,
Absolute vs. Reserve Auctions, Subpoenas, and Ethics & Professional Conduct in
Real Estate Practice Exam Questions Verified and Provided with Complete A+
Graded Rationales Latest Updated 2026
What's the purpose of license law?
To regulate the practice of real estate brokers & salespersons in order to protect the public health,
safety, & welfare. Only individuals who meet and maintain the minimum standards of competence &
conduct may provide service to the public.
Can an "Associate broker" have supervisory authority?
No, they are supervised by PB or executive broker.
Does an executive broker have to be under supervision?
Yes, by PB
Who may executive broker have supervision over?
Associate brokers & salespersons
,To participate in a real estate auction, must the auctioneer and ringman both hold a real estate license?
Yes
Define "Principal Broker"
Individual expecting to act or act for another for a fee, commission, or other consideration.
What is a person called working under the Power of Attorney?
Attorney in fact
Can a person working under an official power of attorney receive a fee for selling the person's property
whom they are representing?
No
What is the limitation of an attorney at law performing real estate activities without a license?
Performing his or her duties as an attorney at law.
For exemption, does a resident manager have to actually live on the property?
Yes
Can an officer or employee of a federal agency or state government, or any political subdivision buy or
sell property?
,Yes, as long as it's in the performance or conduct of their official duties.
Do MLS employees have to have a RE license?
not if they're wholly owned by a nonprofit organization or association of real estate licenses.
What could a person be charged with for operating without a real estate license when such is required?
Class D felony
Who would prosecute a violator for operating without a license?
Prosecuting attorney for each county
In what court would an action for operating without a license be brought?
Circuit court in any county where it happened
Can a salesperson, executive broker, or associative broker sue the public for compensation?
No, unless action is against Principal broker with whom he/she is licensed with.
In which real estate transaction must an agent disclose to the parties whom they are representing?
Every one
How many members make up AREC?
5
, Who appoints the commissioners?
Governor
What is the length of the term for Real Estate commissioners?
3 years
3/5 of commissioners must have held a real estate license for a minimum of:
5 years
The governor fills vacancies from a list of 4 nominees submitted by whom?
Arkansas Realtors Association
To whom do the two non-industry people on the commission represent?
one represents consumers, one represents the elderly (60+)
What is the limitation of the two non-industry representatives on the Commission?
- both shall be appointed from stage at large, subject to confirmation by the senate
- 2 positions can't be held by the same person
- both shall be full voting members, but can't participate in the grading of exams
Who is employed to put into effect the rules and regulations of the Commission?
Principal & Executive Broker Duties, Associate & Salesperson Authority, Agency
Disclosure, Trust Accounts & Escrow Management, Post-Licensure Education,
Continuing Education, Recovery Fund, Enforcement & Disciplinary Procedures,
Time-Share Law, Auctions, Legal Compliance, Agency Relationships, Dual
Agency, Record-Keeping, Escrow & Trust Funds, Client Protection, Commission
Procedures, Licensing Exemptions, Criminal Background Checks, Advertising
Regulations, Earnest Money Handling, Broker Supervision, AREC Operations,
Licensing & Renewal Requirements, Post-License Education, Violation Penalties,
Judicial Proceedings, Buyer & Seller Rights, Auctioneer & Buyer's Premium,
Absolute vs. Reserve Auctions, Subpoenas, and Ethics & Professional Conduct in
Real Estate Practice Exam Questions Verified and Provided with Complete A+
Graded Rationales Latest Updated 2026
What's the purpose of license law?
To regulate the practice of real estate brokers & salespersons in order to protect the public health,
safety, & welfare. Only individuals who meet and maintain the minimum standards of competence &
conduct may provide service to the public.
Can an "Associate broker" have supervisory authority?
No, they are supervised by PB or executive broker.
Does an executive broker have to be under supervision?
Yes, by PB
Who may executive broker have supervision over?
Associate brokers & salespersons
,To participate in a real estate auction, must the auctioneer and ringman both hold a real estate license?
Yes
Define "Principal Broker"
Individual expecting to act or act for another for a fee, commission, or other consideration.
What is a person called working under the Power of Attorney?
Attorney in fact
Can a person working under an official power of attorney receive a fee for selling the person's property
whom they are representing?
No
What is the limitation of an attorney at law performing real estate activities without a license?
Performing his or her duties as an attorney at law.
For exemption, does a resident manager have to actually live on the property?
Yes
Can an officer or employee of a federal agency or state government, or any political subdivision buy or
sell property?
,Yes, as long as it's in the performance or conduct of their official duties.
Do MLS employees have to have a RE license?
not if they're wholly owned by a nonprofit organization or association of real estate licenses.
What could a person be charged with for operating without a real estate license when such is required?
Class D felony
Who would prosecute a violator for operating without a license?
Prosecuting attorney for each county
In what court would an action for operating without a license be brought?
Circuit court in any county where it happened
Can a salesperson, executive broker, or associative broker sue the public for compensation?
No, unless action is against Principal broker with whom he/she is licensed with.
In which real estate transaction must an agent disclose to the parties whom they are representing?
Every one
How many members make up AREC?
5
, Who appoints the commissioners?
Governor
What is the length of the term for Real Estate commissioners?
3 years
3/5 of commissioners must have held a real estate license for a minimum of:
5 years
The governor fills vacancies from a list of 4 nominees submitted by whom?
Arkansas Realtors Association
To whom do the two non-industry people on the commission represent?
one represents consumers, one represents the elderly (60+)
What is the limitation of the two non-industry representatives on the Commission?
- both shall be appointed from stage at large, subject to confirmation by the senate
- 2 positions can't be held by the same person
- both shall be full voting members, but can't participate in the grading of exams
Who is employed to put into effect the rules and regulations of the Commission?
