Arkansas Real Estate License Law Questions with Correct Answers

A property management agreement is a written contract between the Correct Answer owner and property manager The answer is owner and property manager. A property management agreement is a written contract between the owner and the property manager. How are members of the Arkansas Real Estate Commission's board selected? Correct Answer Appointed by the governor The answer is appointed by the governor. The members of the board are appointed by the governor and approved by the senate. Arkansas license law requires that Correct Answer a broker make the real estate business his or her major activity if employing agents. The answer is a broker make the real estate business his or her major activity if employing agents. Anybody can remove the signs from the subject property. Arkansas license law states that a broker engaged in any field other than real estate is presumed to be gainfully employed in a non-real estate related field. The presumption may be overcome by proof that such employment is in a "like-kind" field to real estate. No law requires that real estate appraisers look at a property prior to listing. Licensees must take six hours of continuing education each year in order to have their license renewed active. What are the three types of agency recognized in Arkansas? Correct Answer Seller, buyer, and disclosed dual The answer is seller, buyer, and disclosed dual. Arkansas recognizes single agency, such as representing the seller or the buyer, as well as dual agency, as long as both parties agree. A salesperson had his Arkansas salesperson license revoked. When will the salesperson be eligible to reapply for licensing? Correct Answer Two years The answer is two years. A licensee whose license has been revoked shall be eligible to apply for a new license two years from the date of revocation. Buyer-brokerage contracts in Arkansas Correct Answer are required by law to be in writing if they are exclusive in nature. The answer is are required by law to be in writing if they are exclusive in nature. The buyer-brokerage contract is an employment contract and must be in writing if exclusive in nature. Open buyer-brokerage agreements are not required to be in writing but are highly recommended as set forth in Regulation 10. Buyer-brokerage contracts are definitely regulated, just as listing agreements are regulated. Who must have a real estate license to perform the following activities? Correct Answer Company that for a fee (not commission) matches individuals from different parts of the country who want to exchange properties and assists them in doing so The answer is company that for a fee (not commission) matches individuals from different parts of the country who want to exchange properties and assists them in doing so. Anyone who matches individuals for a fee or commission requires a real estate license. Court-appointed individuals are not required to have a real estate license. The resident manager is specifically exempt from being required to have a real estate license. In Arkansas, what is the maximum amount due for a filing fee of a time-share interval project? Correct Answer $500 The answer is $500. The time-share developer must file an application and pay a $300 filing fee plus $5 for each 25 intervals, not to exceed the sum of $500. A broker received an accepted contract and earnest money deposit. Under Arkansas law, the broker should Correct Answer deposit the money in an existing special escrow account in which all earnest money received from buyers may be held at the same time. The answer is deposit the money in an existing special escrow account in which all earnest money received from buyers may be held at the same time. The broker may deposit this buyer's funds into an escrow account containing money from other customers and clients. Detailed record keeping is required. A licensee is representing the seller solely in a real estate transaction. When must the agent disclose his or her agency relationship to the prospective buyer? Correct Answer In a timely manner The answer is in a timely manner. The licensee should disclose to the buyer his or her agency relationship with the seller in a timely manner under the particular circumstances, so as to avoid possibly eliciting or receiving information that otherwise would need to remain confidential. The purpose of the Arkansas Real Estate Recovery Fund is to Correct Answer provide a means of compensation for actual monetary losses suffered by individuals as a result of the acts of a licensee while violating the license law or committing other illegal acts related to a real estate transaction.