c. Both the listing agent and the principal broker A specific disclosure required by Arkansas regulation is that of the agent's compensation. When a licensee leaves the employment of a principal broker, he must immediately surrender his pocket card. b. What fee does a licensee incur to move to another broker? The Arkansas Administrative Procedure Act The broker should: Brokers can alleviate known potential problems by employing seller disclosure statements, requiring agents to question suspicious items, and putting all representation in writing. b. Sign up. An attorney performing their duties a. After the conveyance, Jim and Manny. under each listing, the seller avoids paying the broker a commission if the seller sells the property to someone the broker did not procure. the buyer receives equitable title to the property. What can a principal broker delegate to an executive broker? d. Failure to disclose to all parties in a transaction, A revoked license: Harry conveys his interest to his long-time friend Wendell. If an agent drafts an offer, as the selling agent their signature must also appear on the contract. Parties who may have been damaged by unlicensed persons performing real estate services cannot sue the unlicensed party. The term "licensee" is restricted to a salesperson licensed by the state of Arkansas and working under a principal broker At first contact. All applications expire one year following successful completion of the examination, or the date of the application, whichever occurs first. Net listings are unethical because of the potential conflict of interest for the broker. a. Applicants who pass the exam must pay the license fee and Real Estate Recovery Fund fee within 90 days from the date of the examination . The value of the smaller home will most likely. b. One who is "on their own" in buying or selling real estate All of the following are examples of a property managers duties EXCEPT. Three years in all cases would not be allowed to rebuild the plant in that location under any circumstances. There was compensation promised Must be kept for 5 years _____ of these must be at least 60 years of age and represents the elderly. d. The Commissioner has the right to interplea, A licensee must disclose which party they are representing in a real estate transaction to: c. Can be filed by the defendant within 90 days b. Promulgate necessary rules The brokerage name- A licensee may not advertise any property, including the licensee's own residence, for sale or rent, without including the name of the firm with which that licensee is licensed. d. Apply for review within 3 days, c. Be punished by all the power of a circuit court, Upon passing the real estate exam, a person may: Trust funds must be deposited no later than 3 business days. One hundred dollars per a year of inactivity, All of the following are false EXCEPT: If the brokerage ceases to exist, the most recent principal broker carries responsibility for the firm's records. A principal broker authorizes one agent in her firm to represent the seller and another to represent the buyer in the same real estate transaction. c. Never Over 97% of our students have used our real estate practice test and other exam prep products to pass their real estate exam the first time through. Must pay a one time fee of $50.00 The assignee is secondarily responsible if it was agreed upon to pay the rent, and may even make rental payments directly to the landlord. Does an agent's compensation need to be disclosed? A licensee who is responsible to no one and can set his or her own hours The executive broker: the manager under the boss. The agent always owes absolute fidelity to their Client. b. d. An immediate family member of a salesperson, who is asked to procure clients for a consideration, The terms "real estate" and "real property": Match. Dual agency means representing both principal parties to a transaction. Increase because of the larger, more expensive properties. If engaged in real estate activities for a fee, and only as part of their ordinary course of business, which of the following is exempt from the real estate licensing requirement? Round to the nearest cent. Indicate which of the following items would be reported as an extraordinary item on Pitchford Corporations income statement. A bachelor died owning real estate that he devised to his niece. c. Guilty of class B felony Where records are kept d. There are no statute of limitations in any case, The section dealing with correct proceedings in cases of hearings or denials of licenses is known as: b. c. "Continuing education classes" are classes taken at an approved school The recovery fund is subject to having to pay for time0share violations. All of the following are true of an open listing and an exclusive agency listing EXCEPT. Likewise, they may give rise to questions of breaches of agency law, such as loyalty and disclosure. c. An invoice for equipment of $4,800 was recorded as$4,000. Public offering statements must be provided to all purchasers of a time-share interval. c. Is subject to revocation of their Arkansas license for violations in their own state b. b. b. In an Arkansas time-share development, a sales agent must show evidence of a corporate bond in what amount? (In many states, if couples do not specify "Joint Tenancy," this form of ownership will be automatically assumed.) c. Never convicted of a felony A person who received the email chose to opt-out from receiving additional emails from the licensee. 2023 - BT Management, Inc. All rights reserved. d. Is satisfied for the following year for new licensees, d. Is satisfied for the following year for new licensees, As to correspondence courses meeting the continuing education requirement: Only with the principal broker's permission Test. The loss of value due to the normal wear and tear on a property is called, Under an existing zoning ordinance, no signs that extend more than three feet above the highest point of a roof may be placed on any building. Diligence Blog Text me app. a. The buyer will have what type of estate upon closing? The day of closing, the escrow's closing agent called to tell the broker the $500 was missing. a. Proof of non-activity in real estate must be given A real estate brokerage firm used a third-party email service to send an unsolicited email to announce a reduced price on a listed property. A photograph of the company yard signs must be on file at he Commission at all times. Is not possible under state rules a. d. December 15, 2004, To reinstate an expired license: Open ended until renounced The agent represents one party in a transaction. d. All of the above, A licensed real estate agent: Real Estate Exam; California Real Estate Test 1; California Real Estate Test 2; California Real Estate Test 3; Real Estate Exam Questions; Real Estate Test; "At first glance" A net lease sets the tenant's monthly rent as a fixed amount plus some or all of the owner's operating expenses. Earnest money must be deposited into an escrow or trust account within three days following execution of the contract. b. Sixty hours of classroom instruction a. c. Proof of current continuing education requirements may need to be submitted inform any prospective buyers of the defect. 1,000 Real Estate Practice Test Questions Our real estate test prep comes with over 500 multiple choice practice real estate test questions, and 450 vocabulary test questions with detailed answer explanations. b. Salespeople can only receive compensation from their employing broker. You must be sponsored by a managing broker in order to practice. $25,000 per violation, to a maximum of $75,000. Good reputation Base x height. Three c. To protect public health, safety and welfare Assignment of a contract does not change the broker/agent relationship. Authority to act on behalf of Principal. What, if anything, should now be done? Universal agency. The exams are written under the supervision of the commission and administered by an independent testing company. Upon a complainant appealing a decision by the executive director to dismiss, the Commission may consider any new evidence the complainant may wish to supply them for their consideration. With a local real estate licensee, she signed exclusive right-to-sell listing agreement. After the buyer's offer was accepted, the buyer had the home inspected. How would an applicant be exempt for the GENERAL portion of the real estate exam? However, the original tenant remains primarily responsible for rental payments. The ROI formula: after-tax cash flow equity 100% of the return, Statistical Techniques in Business and Economics, Douglas A. Lind, Samuel A. Wathen, William G. Marchal, Marketing Essentials: The Deca Connection, Carl A. Woloszyk, Grady Kimbrell, Lois Schneider Farese, Information Technology Project Management: Providing Measurable Organizational Value, Alexander Holmes, Barbara Illowsky, Susan Dean. a. Record Boat Beltings payment of cash on October 25, when the exchange rate for a Swiss Franc is$1.14. Generally, examinees will have anywhere from 90 minutes to four hours to complete the exam in its entirety. b. Sixty hours A felony. a. The rescission period has elapsed on a contract; c. If they desire Let's say you have the following information: a 4-unit building with an asking price of $200,000 and gross annual rents of $24,000. If the recovery fund goes below $350,000.00, licensees' can be required to pay additional to restore the fund balance. Application designed and maintained by HCCS, Inc. Because the cousin died with no will, his property will pass to those persons identified in his state's laws of decent as heirs. All of our 1,000 Arkansas real estate practice exam questions are similar to the ones you will find on the actual Arkansas real estate exam, and are written by a Licensed Real Estate Instructor. c. Must have their own "bond of assurance" Name some critical material facts for disclosure: *the agent's opinion of the property's condition b. d. Charge for by dictate of the Governor, c. Charged for by choice of the commission, Fees, fines, and penalties collected by the commission are: The firm's records must be maintained by the principal broker for three years, available for inspection. c. Must include any listing agreements The Arkansas Real Estate License Examinations are developed and administered by Pearson VUE, a National Independent Testing Company. The _________________ is established to pay damage claims to members of the public who have suffered monetary loss attributed to real estate licensees. A time-share project may be advertised without submitting anything to the Commission. c. Must be retained until closing A licensee must disclose information involving any known facts about a property that would affect its value or desirability. The following legal description contains how many acres: the S of the SE of the NW of the NE of Section 7? The Arkansas Trust Fund d. Neither a or b, In a court of law, copies made of original documents held by the commission are: What records maintained by the principal broker does the investigative staff of the Arkansas Real Estate Commission have power to investigate? The public demands it d. Individuals who meet and maintain minimum standards, d. Individuals who meet and maintain minimum standards, In real estate: Go through a fingerprinting process. Only a licensee may perform services that are transactional, routine brokerage, and even customer service level. The Arkansas Real Estate Commission has a total of three individuals whom each serve three (3) year terms. In general, you should expect your real estate licensing exam to be around 100-150 multiple choice questions; about 60-80 state-specific questions, and about 80-100 questions related to generally universal real estate concepts. The "warehousing" occurs when individual loans are bundled, often with a common element such as the size of the mortgage or credit worthiness of the borrowers, and sold as a single unit. Multiply all denominators, divide that number into 640. b. a. Conquer Your. The clause in a mortgage or deed of trust which gives a lender the right to demand the entire loan balance to be due upon the buyer's default is. Are on the first Monday following the second Tuesday of every month c. Can be called by a majority d. Are twice a year at a time designated by the commission Click the card to flip Definition 1 / 230 C. Can be called by a majority ____ members of the AREC are appointed to represent consumers and shall not be actively engaged in or retired from the business of real estate. Is established by a majority If the buyer defaults, this means the seller, The clause in a contract that makes timely performance a condition of the contract is called, All of the following provisions would typically be included in a property management agreement EXCEPT. Fines not exceeding $10,000 for each offense The tests include questions on general real estate topics. During the current month, the following errors occurred in recording transactions in the purchases journal or in posting from it. A business day includes Saturdays the lender is open for business. Must disclose any knowledge of property repairs needed Calendar of Events; Commission; Contact AREC; News; . Any competent individual d. Must participate in the Real Estate Recovery Fund, b. d. To the commissioner, Timing of a disclosure in a real estate transaction is regulated by: Fees: Examination Fees (Salesperson: $45) License (Salesperson: $160). After helping them negotiate for their dream home, the buyers ask the salesperson if she can help them secure a mortgage. Because joint tenancy must be declared, Jim and Manny remain joint tenants with a two-thirds interest while Wendell, because of his passive acquisition of his share of the property, becomes a tenant in common with Jim and Manny. Disaster relief for real estate professionals A mortgage broker is an intermediary who brings borrowers and lenders together. *Branch offices must display clear signage and the licenses of all agents practicing within the office. d. A demand of payment from the commission, If a licensee does not renew their license by September 30th all of the following may apply EXCEPT: Can a landlord charge an extra deposit for a service animal? Criminal background checks must have been completed within six (6) weeks prior to the application being processed by the Commission. *Discharge administrative duties. d. Will be processed because of the grace period, The commission may process an application without penalty received on October 2nd because: Reasons an agency relationship may terminate without successful completion *death or incapacity of either party a. Cannot use a fictitious name As soon as payment is made from the recovery fund, the real estate licensee is automatically suspended. Let's start your studying right now! They may take their own listings with them Members of the public may have access to the MLS, but not to all of the features and content. Boat Belting then collects cash on April 24 when the exchange rate for a peso is$0.099. Are waived by mutual consent I, the principal broker, am out of town for not more than one (1) day. d. May be asked to only pay $10.00, If the amount in the Real Estate Recovery Fund is less than the amount needed for compensation: A licensee may be assessed a monetary penalty up to $1,000.00 for each violation. d. Home construction knowledge for real estate agents, All of the following are exempt from submitting courses to the board for continuing education approval EXCEPT: Complete and pass the real estate examination. c. Five years in some cases Does there have to be compensation in order to have an agency relationship? b. . d. The company's business account, A salesperson collecting security deposits from rental units they own: Have a sign stating thatchy are engaged in real estate Paying a fee established by the commission, The maximum fee for a broker to reinstate their license is: Their principal broker Property manager. Ringmen in an aution do not have to have a real estate license as long as the auctioneer they are working under has one. A test must be taken c. Have equal voting privileges It gives the buyer full knowledge of all issues with the property. A state judge In a coop sale with a listing firm, if their sellers are paying a selling bonus, the bonus may be paid directly to the agent who made the sale. What type of crime does someone commits if they act as a broker or salesperson without a valid license? Time-share is considered to be a real estate interest. A special assessment is applied to all licensees to cover it Requires consent of all licensed brokers a. What is the maximum amount the Commission may pay from the Recovery Fund? All funds received by a broker in connection with an accepted contract on behalf of his or her principal must be deposited into an escrow or trust account within Three days of obtaining all signatures for the contract. Only $35.99/year. Has the right to appeal to the commission within 30 days a. Arkansas Real Estate Test Prep - State Test Only $62.00 Add to Cart 86.5% of CompuCram users pass their licensing exam the first time! c. December 31, 2003 c. Is no longer considered liable in lawsuits c. Both a & b Also referred to as a transaction broker or a facilitator. In no case d. Is decided at the first annual meeting of the members, Salaries of the employees of the commission are established by: *property condition. Both Sales and Broker licensees' must complete post-license education within the first year of getting their license. b. Notify the commission Each agent is. Scarcity means that there is a limited supply of similar properties. a. a. 4) Financing: 10%. c. Can be appealed to the state court within 3 months Certain states also have a period of time after a foreclosure sale in which the borrower in default may redeem the property if the borrower pays the court; the right to redeem the property within the period is called a statutory right of redemption. c. The duty of the licensee How will each error come to the bookkeepers attention, other than by chance discovery? Illegal Use a graphical technique to display this information. An examination fee not to exceed $75 pursuant to 17-42-313, an appeal filing fee not to exceed $100 A real estate recovery fund fee not to exceed $25 Plus the actual cost of a state and federal criminal history background check. d. Must determine if the company resides in Arkansas, d. Must determine if the company resides in Arkansas. For help with the national portion we have our national real estate practice quiz. b. If a borrower in default pays the lender the amount in default, plus costs, before the foreclosure sale, the debt will be reinstated in some states. c. Is defined to be 3 members The broker has no grounds for a lien or for a suit. The original tenant. b. You will have between 2-4 hours to complete your exam. The listing agent Is exempt from disciplinary action Study Plan. The ________________ requires real estate licensees who hold active licenses to complete six classroom hours of real estate topics selected by the Commission each year. The company is allowed to continue operating the plant under the new zoning classification as a nonconforming use. E&O insurance policies vary from providers. The process by which the new contract replaces the old one is called. a. c. The signature of the lien holder d. May take only the Arkansas Law portion of the exam, b. d. Illegal, The interest on trust accounts program: Real Estate Practices and Agency Learn with flashcards, games, and more for free. \hspace{8pt} Determine the interest earned by Carly Company on Baltimore Company bonds for 201020102010. d. Must pay the recipient punitive damages, b. a. It gives the buyer full knowledge of all issues with the property.