Real Estate Course
5 Ways the AREC protects the public. - answer1. Establishes minimum requirements for
licenses.
2. Requires two commissioners to be advocates for consumers.
3. Provides for the effective professional education of licensees.
4. Maintains records of all licensees.
5. Enforces rules and punishes offenders.
How many members does the AREC have and what is the commission make up? -
answer5 members total.
- 3 licensees having at least 5 years of experience.
- 2 members not having been active or retired licensees. 1 non-licensee representing
consumers. 1 non-licensee 60 years or older representing elderly individuals.
How long is the term of a AREC member? - answer3 calendar years.
Who appoints AREC commissioners? - answerThe governor.
Who should the governor consult with before making licensee member appointments? -
answerThe Arkansas REALTORS® Association.
True or false: Non-licensee members are subject to confirmation by the Senate. -
answerTrue
True or false: Non-licensee members are full voting members. - answerTrue
True or false: Non-licensee members can grade license examinations. - answerFalse
How often does the AREC meet? - answerOnce a month.
What are the powers and duties are the AREC? - answer- Administer oaths.
- Maintain official records suitable as evidence in courts.
- Conduct real estate seminars for licensees.
- Establish procedures for conducting real estate auctions.
When can AREC commissioners issue subpoenas? - answerFor hearings and
investigations.
What does the AREC director have the authority to do? - answerDischarge the duties of
fulfilling and administering the license law.
,What is the Real Estate Recovery Fund, administered by the Commission, used for? -
answer- Educational projects and seminars.
- Funding real estate research projects.
Where do annual licensee fees go to? - answerThe AREC Recovery Fund.
What is the minimum required balance for the Real Estate Recovery Fund? -
answer$250,000
Which of the following is NOT required of at least one of the Commission members?
A. Licensee with 5 years of experience
B. Member of an underrepresented group
C. 60 years of age
D. Representing consumers - answerB. Member of an underrepresented group
What is the primary source of laws and regulations governing real estate licensees in
Arkansas?
A. The Consumer Protection Act
B. The Arkansas Fair Housing Act
C. Title 17, Chapter 42 of the Arkansas Code
D. The Arkansas Professional Regulation Act - answerC. Title 17, Chapter 42 of the
Arkansas Code
What is the purpose of the Commission regulations?
A. To keep unlicensed persons from collecting commissions
B. To control the real estate industry in Arkansas
C. To test the effects of new regulations before they become law
D. To enable the Commission to carry out its duties under the License Act - answerD.
To enable the Commission to carry out its duties under the License Act
The Real Estate License Law established a Real Estate Recovery Fund:
A. to pay for the salaries and activities of the Commission.
B. to protect consumers if their property is foreclosed.
C. for the protection of the public against harmful actions by licensees.
D. for eminent domain purchases by the Commission. - answerC. for the protection of
the public against harmful actions by licensees.
Licensee members of the Commission are
A. nominated by the director of the Commission.
B. appointed by the outgoing members.
C. appointed by the Arkansas governor.
, D. nominated by the Arkansas Citizens Review Committee of the Commission. -
answerC. appointed by the Arkansas governor.
Who is a principal broker? - answerAn individual who performs certain real estate
services for another party for compensation.
The key point regarding activities requiring a license is what phrase? - answer"On
behalf of others, for compensation."
Can you sell, list, and find tenants for your own properties without being licensed? -
answerYes.
Can you sell, list, and find tenants for other people's properties without being licensed? -
answerNo.
Absolute Auction - answerAn auction in which real estate is sold to the higher qualified
bidder, with no minimum bid or limiting conditions.
Auction with Reserve - answerAn auction in which the seller or their agent reserves the
right to establish a disclosed or undisclosed minimum bid.
Buyer's Premium - answerAn advertised percentage of the high bid or a flat fee added
to the high bid to determine the total contract price to be paid by the buyer.
Internet Auction - answerAn auction in which a prospective buyer bids using electronic
media or an auction in which the auctioneer conducts the auction using electronic
media.
Rafter Bid or Puffing Bid - answerA fictitious bid used to increase the final sales price.
Reserve (Auction) - answerThe minimum price the seller is willing to accept.
Shill - answerA person who falsely pretends to have no association with the auctioneer
or seller and gives the impression of being an enthusiastic bidder through puffing of a
bid.
When does the auctioneer need to validate a buyer's capability by ascertaining the
buyer's name, address, email address, phone number, and ability to legally enter into a
contract while also also obtain an agreement to the terms of the auction from the buyer.
- answerIn an Internet auction or auction that allows absentee bids.
A resident manager rents apartments for tenants in five neighborhood apartment
complexes. Do they need a license? - answerYes.
A leasing assistant negotiates a 12-month lease for their manager. Do they need a
license? - answerYes.
5 Ways the AREC protects the public. - answer1. Establishes minimum requirements for
licenses.
2. Requires two commissioners to be advocates for consumers.
3. Provides for the effective professional education of licensees.
4. Maintains records of all licensees.
5. Enforces rules and punishes offenders.
How many members does the AREC have and what is the commission make up? -
answer5 members total.
- 3 licensees having at least 5 years of experience.
- 2 members not having been active or retired licensees. 1 non-licensee representing
consumers. 1 non-licensee 60 years or older representing elderly individuals.
How long is the term of a AREC member? - answer3 calendar years.
Who appoints AREC commissioners? - answerThe governor.
Who should the governor consult with before making licensee member appointments? -
answerThe Arkansas REALTORS® Association.
True or false: Non-licensee members are subject to confirmation by the Senate. -
answerTrue
True or false: Non-licensee members are full voting members. - answerTrue
True or false: Non-licensee members can grade license examinations. - answerFalse
How often does the AREC meet? - answerOnce a month.
What are the powers and duties are the AREC? - answer- Administer oaths.
- Maintain official records suitable as evidence in courts.
- Conduct real estate seminars for licensees.
- Establish procedures for conducting real estate auctions.
When can AREC commissioners issue subpoenas? - answerFor hearings and
investigations.
What does the AREC director have the authority to do? - answerDischarge the duties of
fulfilling and administering the license law.
,What is the Real Estate Recovery Fund, administered by the Commission, used for? -
answer- Educational projects and seminars.
- Funding real estate research projects.
Where do annual licensee fees go to? - answerThe AREC Recovery Fund.
What is the minimum required balance for the Real Estate Recovery Fund? -
answer$250,000
Which of the following is NOT required of at least one of the Commission members?
A. Licensee with 5 years of experience
B. Member of an underrepresented group
C. 60 years of age
D. Representing consumers - answerB. Member of an underrepresented group
What is the primary source of laws and regulations governing real estate licensees in
Arkansas?
A. The Consumer Protection Act
B. The Arkansas Fair Housing Act
C. Title 17, Chapter 42 of the Arkansas Code
D. The Arkansas Professional Regulation Act - answerC. Title 17, Chapter 42 of the
Arkansas Code
What is the purpose of the Commission regulations?
A. To keep unlicensed persons from collecting commissions
B. To control the real estate industry in Arkansas
C. To test the effects of new regulations before they become law
D. To enable the Commission to carry out its duties under the License Act - answerD.
To enable the Commission to carry out its duties under the License Act
The Real Estate License Law established a Real Estate Recovery Fund:
A. to pay for the salaries and activities of the Commission.
B. to protect consumers if their property is foreclosed.
C. for the protection of the public against harmful actions by licensees.
D. for eminent domain purchases by the Commission. - answerC. for the protection of
the public against harmful actions by licensees.
Licensee members of the Commission are
A. nominated by the director of the Commission.
B. appointed by the outgoing members.
C. appointed by the Arkansas governor.
, D. nominated by the Arkansas Citizens Review Committee of the Commission. -
answerC. appointed by the Arkansas governor.
Who is a principal broker? - answerAn individual who performs certain real estate
services for another party for compensation.
The key point regarding activities requiring a license is what phrase? - answer"On
behalf of others, for compensation."
Can you sell, list, and find tenants for your own properties without being licensed? -
answerYes.
Can you sell, list, and find tenants for other people's properties without being licensed? -
answerNo.
Absolute Auction - answerAn auction in which real estate is sold to the higher qualified
bidder, with no minimum bid or limiting conditions.
Auction with Reserve - answerAn auction in which the seller or their agent reserves the
right to establish a disclosed or undisclosed minimum bid.
Buyer's Premium - answerAn advertised percentage of the high bid or a flat fee added
to the high bid to determine the total contract price to be paid by the buyer.
Internet Auction - answerAn auction in which a prospective buyer bids using electronic
media or an auction in which the auctioneer conducts the auction using electronic
media.
Rafter Bid or Puffing Bid - answerA fictitious bid used to increase the final sales price.
Reserve (Auction) - answerThe minimum price the seller is willing to accept.
Shill - answerA person who falsely pretends to have no association with the auctioneer
or seller and gives the impression of being an enthusiastic bidder through puffing of a
bid.
When does the auctioneer need to validate a buyer's capability by ascertaining the
buyer's name, address, email address, phone number, and ability to legally enter into a
contract while also also obtain an agreement to the terms of the auction from the buyer.
- answerIn an Internet auction or auction that allows absentee bids.
A resident manager rents apartments for tenants in five neighborhood apartment
complexes. Do they need a license? - answerYes.
A leasing assistant negotiates a 12-month lease for their manager. Do they need a
license? - answerYes.
