Regulations/Law

Question 1

True or False
I, the principal broker, am out of town for not more than one day. an Associate Broker may, by the brokers request, assume temporary, supervisory authority within the firm.

Answer 1

False

Question 2

True or False

License laws regulate licensees and protect the public.

Answer 2

True

Question 3

True or False

Ringmen in auction do not have to have a real estate license as long as the auctioneer they are working under has one?

Answer 3

False

Question 4

True or False

A person working under a power of attorney is known as an attorney in fact.

Answer 4

True

Question 5

True or False

MLS employees have to have a real estate license

Answer 5

False

Question 6

True or False
One, operating without a real estate licensee where required to do so by law, may be charged with a class D misdemeanor.

Answer 6

False

Question 7

True or False

Actions brought against an unlicensed person would be done so through the prosecuting attorney in the chancery court.

Answer 7

True

Question 8

True or False

An executive broker can bring a suit against the public if they fail to pay the commission due.

Answer 8

False

Question 9

True or False

Law will allow an agent to represent both a buyer and seller in an agency capacity at the same time.

Answer 9

True

Question 10

True or False

The Arkansas Real Estate Commission has a total of three individuals whom each serve 3 year terms.

Answer 10

False

Question 11

True or False

Commissioners who come from the real estate industry must have been licensed for a minimum of seven years.

Answer 11

False

Question 12

True or False

The governor appoints all commissioners from a list of nominees submitted by the Arkansas realtors Association

Answer 12

Fasle

Question 13

True or False

The Executive Director of the Arkansas Real Estate Commission is not a commissioner

Answer 13

True

Question 14

True or False

The Legislature has given the Arkansas Real Estate Commission the right to enact additional Rules and Regulations

Answer 14

True

Question 15

True of False
The Reals Estate Commission can hold educational seminars in conjunction with the Arkansas Realtors Association whereby attendance is limited to Realtor members.

Answer 15

False

Question 16

True or False

The Arkansas Real Estate Commission has authority over auctioneers who auction real estate in Arkansas

Answer 16

True

Question 17

True or False

The Arkansas Real Estate Commission possesses subpoena powers for both individuals as well as books and writings

Answer 17

True

Question 18

True or False

A person must hold a real estate license of some type to legally own a real estate company

Answer 18

False

Question 19

True or False
The Commission holds the right to place someone in charge of a real estate company who is not licensed as a principal broker

Answer 19

True

Question 20

True or False

Criminal background checks and fingerprinting are required for all real estate licensee applicants in Arkansas

Answer 20

True

Question 21

True or False

To sit for the broker’s exam a person must have been a salesperson for at least 12 months out of the past 24 months

Answer 21

False

Question 22

True or False

Both Sales and Broker licensees’ must complete post license education within the first year of getting their license.

Answer 22

False (6 months)

Question 23

True or False
There are nom provisions for a person licensed in another state to obtain an Arkansas license without the same educational and testing requirements of an original Arkansas applicant

Answer 23

False

Question 24

True or False

The original license fee and the recovery fund fee must be paid within 60 days of the exam passage

Answer 24

False

Question 25

True or False | All types of real estate licenses expire on the last day of the year each year.

Answer 25

True

Question 26

True or False | License renewal requests must be sent in by December 1 of each year.

Answer 26

False

Question 27

True or False | No annual renewal fee is required as long as an agent is renewing on inactive status

Answer 27

False

Question 28

True or False | While a license is on inactive or expired status, the licensee is not subject to disciplinary actions

Answer 28

False

Question 29

True or False | A branch office does not have to have a principal broker

Answer 29

True

Question 30

True or False | A licensee is suppose to notify the commission if they should lose their pocket card

Answer 30

True

Question 31

True or False | A broker is required to display, at their pace of business, the license of all agents in their firm

Answer 31

True

Question 32

True or False | If an agent leaves a firm they must immediately return their pocket card to the Commission

Answer 32

False

Question 33

True or False | When an agent elects to go to work for another firm, they may take their listings with them

Answer 33

False

Question 34

True or False In a coop sale with a listing firm, if their sellers are paying a selling bonus, there bonus may be paid directly to the agent who made the sale

Answer 34

False

Question 35

True or False | A referral fee can only be paid if the receiving party has a valid active real estate license

Answer 35

True

Question 36

True or False If an agent's license is revoked, the agent may be eligible to apply for a new license within one year for the date of revocation

Answer 36

False

Question 37

True or False | The Executive Director of the Arkansas Real Estate Commission can dismiss a complaint without scheduling a hearing.

Answer 37

True

Question 38

True or False | The Commission has the power to suspend or revoke a license.

Answer 38

True

Question 39

True or False | A licensee may be assessed a monetary penalty up to $1,000 for each violation.

Answer 39

True

Question 40

True or False A Complaint which is dismissed by the executive director of the Commission can be appealed by the complainant within 90 days

Answer 40

False

Question 41

True or False | All filing fees in an appeal must be paid within 30 days notice of the amount.

Answer 41

True

Question 42

True or False A person who has, in the past, been convicted of a felony or crime is automatically barred from being able to obtain a real estate license.

Answer 42

False

Question 43

True or False | A person who is indigent may be relieved from paying the filing fees in a appeal

Answer 43

True

Question 44

True or False | The Commission will not investigate a complaint unless it has been filed within 3 years or occurrence

Answer 44

True

Question 45

True or False If a complaint proceeds through a formal hearing with the commission, they are then barred from seeking other civil or criminal relief through the courts

Answer 45

False

Question 46

True of False | Excess money in the recovery fund may be used for educational purposes

Answer 46

True

Question 47

True or False | If the recovery fund goes below $350,000 licensees' can be required to pay additional to restore the fund balance

Answer 47

False

Question 48

True or False | All first time licensees' must pay $25.00 into the recovery fund within ninety days of exam passage

Answer 48

True

Question 49

True or False | The maximum amount that can be paid form the recovery fund for 1 violation by a licensee is $25,000

Answer 49

True

Question 50

True or False | The maximum amount that can be paid from the recovery fund for multiple acts of any one licensee is $75,000

Answer 50

True

Question 51

True or False | If deemed that it is warranted by the Commission, punitive damages and/or interest may be paid out of the recovery fund

Answer 51

False

Question 52

True or False | A final order of the Commission may be appealed in Circuit Court

Answer 52

True

Question 53

True or False | Continuing education will be required of a person seeking to reactivate an inactive license.

Answer 53

True

Question 54

True or False | to maintain an active license, an agent must complete seven hours of continuing education annually

Answer 54

True

Question 55

True or False | No continuing education is required for the first renewal filling the date a person is licensed

Answer 55

True

Question 56

True or False | The Arkansa Real Estate Commission approves continuing education courses

Answer 56

False

Question 57

True or False | Pre-license classes can be taken for continuing education credit

Answer 57

False

Question 58

True or False | A continuing education course cannot be taken twice in the same year for credit

Answer 58

True

Question 59

True or False | Continuing education courses require testing in order to obtain credit

Answer 59

False

Question 60

True or False | The recovery fund is subject to having to pay for time-share violations

Answer 60

False

Question 61

True or False | Time- share is considered to be a real estate interest

Answer 61

True

Question 62

True or False | Time-share agents must individually be bonded in an amount of $10,000

Answer 62

False

Question 63

True or False | Once approved to sell time-share, the developer may advertise their offering as being "recommended by the Commission

Answer 63

False

Question 64

True or False | Punitive damages may be awarded for willful violations of the time-share act.

Answer 64

True

Question 65

True or False | A time-share purchaser has 5 days, after signing a purchase agreement, to cancel a time-share purchase agreement

Answer 65

True

Question 66

True or False | A time-share project may be advertised without submitting anything to the Commission

Answer 66

False

Question 67

True or False | Projected price increases in time-share units must not be advertised more than 60 days prior to an actual increase

Answer 67

True

Question 68

True or False | The Commission meets on a regular schedule one time per month

Answer 68

True

Question 69

True or False The principal broker cannot be held liable in any form if an agent under them sends the the commission a check that is not honored

Answer 69

False

Question 70

True or False Criminal background checks must have been completed within 6 weeks prior to the application being processed by the Commission

Answer 70

False

Question 71

True or False | Both pre-license classes for Brokers and Salespersons can be taken through correspondence (Distance Education)

Answer 71

True

Question 72

True or False | The testing fee is paid to the Commission along with the application

Answer 72

False

Question 73

True or False | A photograph of the company yard signs must be on file at the Commission at all times

Answer 73

False

Question 74

True or False If an agent is terminated or decides to leave a firm, the principal broker has up to 30 days to notify the Commission and return the license.

Answer 74

False

Question 75

True or False | Every real estate transaction requires an agent to disclose whom they represent

Answer 75

Ture

Question 76

True or False | If you represent the buyer, you must disclose this to the seller or their agent at "first contact"

Answer 76

Ture

Question 77

True or False | One agent representing the buyer and another agent representing the seller is known as Dual Agency

Answer 77

False

Question 78

True or False | Dual Agency requires written consent

Answer 78

True

Question 79

True or False | The agent always owes absolute fidelity to their client

Answer 79

True

Question 80

True or False | When a formal complaint is filed against an agent, the agent has 20 days to file a response

Answer 80

True

Question 81

True or False Upon a complainant appealing a decision by the executive director to dismiss the Commission may consider any new evidence the complaint may wish to supply them for their consideration.

Answer 81

False

Question 82

True or False | Testimony in a hearing is under oath and is recorded

Answer 82

True

Question 83

True or False | An agent can lose their license for working independent of their broker

Answer 83

True

Question 84

True or False | A listing can be taken for a term specified as "until notified"

Answer 84

False

Question 85

True or False | The term Realtor refers or any agent holding a valid real estate license

Answer 85

False

Question 86

True or False | The principal broker is generally responsible for all business conducted by the firm

Answer 86

True

Question 87

True or False The principal broker cannot legally, under any circumstance, be a broker and have a job running vending machines at the same time

Answer 87

False

Question 88

True of False When selling or renting their own personal owned properties, an agent can use "for sale by owner" or "for rent by owner" signs

Answer 88

False

Question 89

True or False | Once the sale closes, the broker is no longer required to maintain records on transaction

Answer 89

False

Question 90

True or False | The principal broker is responsible and accountable for all true foods received by the firm

Answer 90

True

Question 91

True or False There are circumstances where a broker may have some of their own money in a trust account and it not be deemed commingling.

Answer 91

True

Question 92

True or False | A broker must deposit earnest money within 3 days of receipt

Answer 92

False

Question 93

True or False | Escrow or Trust accounts must be reconciled at least monthly

Answer 93

Truth

Question 94

True or False | All agency agreements must be in writing

Answer 94

False

Question 95

True or False | If an agent drafts an offer, as the selling agent their signature must also appear on the contract

Answer 95

True

Question 96

True or False | In a coop sale, the earnest money is held by the selling company

Answer 96

False

Question 97

True or False | Post license classes can be taken through correspondence

Answer 97

False

Question 98

True or False A person wishing to be classified as a principal or executive broker must first complete the post-license course for brokers

Answer 98

True

Question 99

True or False The purchasers' right to cancel a time-share contract must appear on the front of the public offering statement in bold face type

Answer 99

True

Question 100

True or False A real estate auctioneer must immediately, prior to opening the bidding, disclose the terms and conditions of the action and whether the seller or auctioneer may bid.

Answer 100

True

Question 101

Section naming the "Real Estate License Law"

Answer 101

17-42-101

Question 102

The legislature regulates the practice of real estate because...

Answer 102

to protect public health, safety, and welfare

Question 103

Real estate service to the public may be provided by?

Answer 103

Individuals who meet and maintain minimum standards

Question 104

In real estate: how long is a "classroom hour"?

Answer 104

at least 50 minutes long, but never longer than 60 minutes

Question 105

A license to practice real estate is needed for?

Answer 105

A broker whose license has expired for no more than 60 days. Anyone collecting rents for a fee, and not residing on the property A immediate family member of a salesperson, who is asked to procure clients for a consideration

Question 106

The Terms "real estate" and "real property" mean?

Answer 106

mostly the same thing

Question 107

An "independent contractor" means?

Answer 107

A licensee working under a principal broker in buying or selling real estate

Question 108

Exempt from requiring a real estate license

Answer 108

An attorney performing their duties An owner selling 3 of his own properties a year A general partner buying land for the partnership

Question 109

Anyone dealing in real estate without a license and not being exempt is?

Answer 109

Punished if convicted

Question 110

Terms for members of the commission are?

Answer 110

Limited to 3 years

Question 111

The commission?

Answer 111

All are appointed by the governor At least one represents consumers Two of the members are not required to be nominated by the commission

Question 112

All of the commission members can?

Answer 112

have equal voting privileges

Question 113

A commission quorum

Answer 113

Is established by majority

Question 114

Salaries of the employees of the commission are established by?

Answer 114

The Commission itself

Question 115

The number of meetings of the commission is

Answer 115

Unlimited

Question 116

The duties and responsibilities of the executive director are designate by?

Answer 116

The commission

Question 117

Administration of oaths by the commission is?

Answer 117

Allowed

Question 118

The commission may legally?

Answer 118

Promulgate desirable rules | promulgate necessary rules

Question 119

In a court of law, copies made of original documents held by the commission are:

Answer 119

Acceptable as originals

Question 120

In assisting seminars in real estate the commission?

Answer 120

Is free to promote and conduct seminars