UNIT 2: LICENSEE-RELATED LAWS
AND REGULATIONS QUESTIONS &
ANSWERS!!
What are the activities that require a real estate license? - ANSWERIn regards to
selling, exchanging, purchasing, renting or leasing real estate or offers to do so.
* Sell
*Negotiate
* List
* Auction
* Option
* Collect Rent
* Advertises oneself as being in business of brokering real estate.
*Procure Prospects
* Assists or directs in negotiating
* Charges advance fees.
* performs any of the foregoing activities as an employee or on behalf of an owner.
What happens if a license has been expired in excess of two years? - ANSWERThe
reactivation requirement will be the same as that of a new applicant.
When will the commission send licensees notice to renew licenses for the upcoming
year? - ANSWEROn or about July 15 of each year.
What are the continuing education requirements for active licensees? - ANSWERSix
classroom hours annually.
What are the continuing education requirements for inactive or expired licenses? -
ANSWERSix hours for every year inactive or expired, not to exceed 30 hours.
Expired licenses can not be reactivated after 2 years.
Is auctioning a license activity? What are the different types of auctions, and auction
terms. - ANSWERYes, you need a license to auction real estate.
Types of Auctions:
* absolute action: the real estate is sold to the higher qualified better with no
minimum bid or limiting conditions.
* auction with reserve: seller or his/her agent reserves are right to establish a
disclosed or undisclosed minimum bid.
* buyers premium: advertise percentage of the high bid or flat fee added to the high
bid to determine the total contract price to be paid by the buyer.
, * Internet auction: an auction in which a prospective buyer bids using electronic
media, or an auction in which the auctioneer conducts the auction using electronic
media.
Terms:
* Rafter bid or Puffing a bid: fictitious bid used to increase the final sales price.
* Reserve: The minimum price the seller is willing to accept.
* Shill: a person who falsely pretends to have no association with the auctioneer or
seller and gives the impression of being an enthusiastic bidder by puffing of a bid.
What parties are exempted from having an Arkansas real estate license? -
ANSWER* individuals who perform any of the foregoing real estate activities
regarding their own property.
* Attorneys-in-fact
* Attorneys-at-law
* receivers, trustees in bankruptcy, administrators, executors, or guardians while
acting under court order or under the authority of a will or trust instrument.
* resident managers
* Federal agency or state government officer or employee while conducting their
official duties.
* multiple listing service
* officers of a corporation or general partner of a general partnership engaging in a
transaction involving real estate owned by the corporation.
* a leasing assistant.
What leasing duties are exempted from having an Arkansas license? - ANSWER*
Delivery of a lease application or lease
* receiving a lease or lease application for delivery to a principal broker, real estate
firm, or owner.
* receiving a security deposit, rent payment or related payment for delivery to the
principal broker, real estate firm, or owner.
* acting under the direct written instruction of the principal broker.
Who needs a license? - ANSWERAny person who sells or assist in selling real
estate for compensation.
* a broker
* A Salesperson
What are the 4 Different types of licensees? And what are their duties? -
ANSWERPrincipal Broker- the boss, in charge of trust fund, all other brokers and
salespersons.
Executive Broker- The manager under the boss. Works under principal broker. Can
run a branch and oversee associate brokers and salespersons.
Associate broker- A broker who just sells and lists. Cannot oversee salespersons.
Salesperson: a selling or listing salesperson.
AND REGULATIONS QUESTIONS &
ANSWERS!!
What are the activities that require a real estate license? - ANSWERIn regards to
selling, exchanging, purchasing, renting or leasing real estate or offers to do so.
* Sell
*Negotiate
* List
* Auction
* Option
* Collect Rent
* Advertises oneself as being in business of brokering real estate.
*Procure Prospects
* Assists or directs in negotiating
* Charges advance fees.
* performs any of the foregoing activities as an employee or on behalf of an owner.
What happens if a license has been expired in excess of two years? - ANSWERThe
reactivation requirement will be the same as that of a new applicant.
When will the commission send licensees notice to renew licenses for the upcoming
year? - ANSWEROn or about July 15 of each year.
What are the continuing education requirements for active licensees? - ANSWERSix
classroom hours annually.
What are the continuing education requirements for inactive or expired licenses? -
ANSWERSix hours for every year inactive or expired, not to exceed 30 hours.
Expired licenses can not be reactivated after 2 years.
Is auctioning a license activity? What are the different types of auctions, and auction
terms. - ANSWERYes, you need a license to auction real estate.
Types of Auctions:
* absolute action: the real estate is sold to the higher qualified better with no
minimum bid or limiting conditions.
* auction with reserve: seller or his/her agent reserves are right to establish a
disclosed or undisclosed minimum bid.
* buyers premium: advertise percentage of the high bid or flat fee added to the high
bid to determine the total contract price to be paid by the buyer.
, * Internet auction: an auction in which a prospective buyer bids using electronic
media, or an auction in which the auctioneer conducts the auction using electronic
media.
Terms:
* Rafter bid or Puffing a bid: fictitious bid used to increase the final sales price.
* Reserve: The minimum price the seller is willing to accept.
* Shill: a person who falsely pretends to have no association with the auctioneer or
seller and gives the impression of being an enthusiastic bidder by puffing of a bid.
What parties are exempted from having an Arkansas real estate license? -
ANSWER* individuals who perform any of the foregoing real estate activities
regarding their own property.
* Attorneys-in-fact
* Attorneys-at-law
* receivers, trustees in bankruptcy, administrators, executors, or guardians while
acting under court order or under the authority of a will or trust instrument.
* resident managers
* Federal agency or state government officer or employee while conducting their
official duties.
* multiple listing service
* officers of a corporation or general partner of a general partnership engaging in a
transaction involving real estate owned by the corporation.
* a leasing assistant.
What leasing duties are exempted from having an Arkansas license? - ANSWER*
Delivery of a lease application or lease
* receiving a lease or lease application for delivery to a principal broker, real estate
firm, or owner.
* receiving a security deposit, rent payment or related payment for delivery to the
principal broker, real estate firm, or owner.
* acting under the direct written instruction of the principal broker.
Who needs a license? - ANSWERAny person who sells or assist in selling real
estate for compensation.
* a broker
* A Salesperson
What are the 4 Different types of licensees? And what are their duties? -
ANSWERPrincipal Broker- the boss, in charge of trust fund, all other brokers and
salespersons.
Executive Broker- The manager under the boss. Works under principal broker. Can
run a branch and oversee associate brokers and salespersons.
Associate broker- A broker who just sells and lists. Cannot oversee salespersons.
Salesperson: a selling or listing salesperson.
