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WorksheetsArkansas License Law / Time Share Law (Quiz 2 of 4)
Total questions: 64
Worksheet time: 32mins
What are the two fees that must be paid within 90 days of exam passage?
Application fee and renewal fee
Examination fee and license fee
License Fee and Real Estate Recovery Fund Fee
Renewal fee and examination fee
Do Brokers or Sales licensees who place their license on inactive status have to pay a fee during the time the license is inactive?
Yes, they must pay
No, they do not have to pay any fee
No, but they must pay a reactivation fee
While a licensee is officially on inactive or expired status, are they still subject to disciplinary actions against them?
Yes, they are still subject to disciplinary actions
No, they are not subject to any actions
Yes, but only for serious violations
No, unless they apply for reactivation
At the firm’s on-site location, the permanent sign in addition to the company name must include what additional words?
Real Estate, Realty, or other words approved by Commission
Authorized Sales Office
Branch Office
Certified Real Estate Agent
What type of license is required for a Branch Office?
Sales license
Broker license
Duplicate license
Real estate license
Who supervises licensees at a Branch Office?
The company owner
The Executive Broker
The head broker
The sales manager
What is a licensee supposed to do if they lose their pocket card?
Report it to the police
Notify Commission promptly
Notify their supervisor
Wait for the renewal period
What two (2) addresses must the licensee keep on file and current at all times with the Commission?
Mailing address and email address
Home and business address
Office address and email address
The licenses of agents are retained by whom, and where must they be displayed?
A. The agent; at their home
B. Their Principal Broker; in Principal Broker’s place of business
C. The state commission; in a public registry
D. The client; in their personal files
If an agent leaves a firm, what are they to do with their pocket card?
A. Return it to the state commission
B. Destroy it
C. Keep it for future use
D. Give it to the Principal Broker
When a licensee elects to activate under a different broker, they must sign a statement that they are not taking any items of what nature from their previous broker?
A. Personal items
B. Office supplies
C. Listings, management contacts, appraisals, lease agreements, copies of or any
other pertinent info belonging to previous Principal Broker or firm
D. Marketing materials
When would acting for more than one party be a violation?
A. When both parties are aware
B. When any party for whom licensee acts is unaware of licensee’s dual agency
C. When it is done with written consent
D. When it involves a family member
From whom must an agent always receive their commission?
A. The client
B. Their principal broker
C. The state commission
D. The real estate board
Can a commission be paid to an unlicensed person as a referral fee without violating license law?
A. Yes, always
B. No, never
C. Yes, if the amount is below a certain threshold
D. Yes, if approved by the state commission
If a license is revoked, how long is it until the party can be eligible to apply for a new license?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Under what circumstance may the executive director dismiss a complaint filed with the commission?
A. If the complaint is anonymous
B. If complaint fails to state a prima facie case or if after investigation Executive Director determines there is insufficient proof of violation
C. If the complaint is against a high-ranking official
D. If the complaint is more than a year old
Does the Commission have the right to suspend or revoke a license, following a hearing, if the agent is found guilty of license law violations?
Yes
No
Only if the agent agrees
Only if the agent is a repeat offender
What amount of monetary penalty may be assessed a licensee?
$500 per violation
$1,000 per violation
$2,000 per violation
It varies
How long does a complainant have to file an appeal if the complaint is dismissed by the Executive Director?
10 days
30 days
60 days
90 days
How soon must an appellant pay the filing fee and cost of preparing the record when they file an appeal?
Immediately
Within 10 days
Within 30 days
Within 60 days
Under what conditions may the appellant be relieved from being required to pay the filing fees?
If they are a first-time appellant
If appellant is indigent
If they have a lawyer
If they win the appeal
What three (3) things may the Commission choose to do regarding their review of an appeal?
Affirm executive director’s dismissal, order additional investigation, order hearing on the complaint
Increase the penalty, order additional investigation, or uphold the decision
Decrease the penalty, order additional investigation, or uphold the decision
Dismiss the appeal, decrease the penalty, or increase the penalty
The Commission will not investigate a complaint unless it is filed within what period of time?
1 year
2 years
3 years
6 months
What two agencies are involved in the applicant’s background check?
FBI and Arkansas State Police
IRS and Local Police
Homeland Security and Arkansas State Police
FBI and Local Police
Who has to pay for the fees associated with the required criminal background check and fingerprinting?
The state
The applicant
The employer
The federal government
Is it possible that a person, who in the past has been convicted of a felony or crime, would still be able to obtain a real estate license?
Yes, under certain conditions
No, never
Only if the crime was non-violent
Only if the crime was a misdemeanor
Who administers the “Real Estate Recovery Fund”?
The state governor
The Real Estate Commission
The local police department
The federal government
In addition to public protection, list four additional purposes the Real Estate Recovery Fund may be used for.
Educational seminars, real estate chairs or courses at institutions of higher learning, research projects in field of real estate, educational and research projects to advance real estate field
Marketing, advertising, travel expenses, and educational seminars
Office supplies, salaries, utilities, and real estate chairs or courses at institutions of higher learning
Real estate development, educational and research projects to advance real estate field, property management, and sales
What level of money must be maintained in the Recovery Fund to prevent licensees from having to pay additional fees to restore the fund balance to its minimum balance requirement?
$250,000
$500,000
$1,000,000
$2,000,000
How much money must be paid into the Recovery Fund the first time a person becomes a licensee?
$25
$75
$100
Awards paid from the Recovery Fund are limited to what type of damages to the aggrieved party?
Punitive damages
Actual damages
Nominal damages
Liquidated damages
How long after the Commission’s final order must an aggrieved party wait before any funds can be expended from the Recovery Fund on their behalf?
30 days
60 days
90 days
120 days
What is the maximum amount that can be paid from the Recovery Fund for any one (1) violation or continuing series of violations by a licensee?
$10,000
$20,000
$25,000
$30,000
What is the maximum amount that can be paid from the Recovery Fund for the acts of any one (1) licensee?
$50,000
$75,000
$100,000
$150,000
What type of awards or cost cannot be assessed against the Recovery Fund?
Punitive or exemplary damages or interest on damages
Compensatory damages
Legal fees
Court costs
Can a circuit court have authority to require payment from the Recovery Fund in an amount greater than the limitations set forth in the license law?
Yes
No
Only under special circumstances
Only with Commission approval
Final order of the Commission may be appealed in which court?
District Court
Circuit Court
Supreme Court
Appellate Court
Upon payment from the Recovery Fund, what immediately becomes the status of the agent’s license?
Suspended
Revoked
Probationary
Active
Is interest paid on a broker’s trust account and placed into an Arkansas nonprofit Corporation a voluntary or mandatory option?
Voluntary
Mandatory
Optional
Required
If a broker is participating in the interest-bearing program, what minimum-sized notice must be prominently displayed describing this to the public?
8.5 x 11 inches
5 x 7 inches
4 x 7 inches
3 x 5 inches
Who appoints the directors that oversee the interest received and disbursement of those funds in compliance with the requirements of law?
The broker
The state governor
At least 60% by Commission, remainder by Arkansas Realtors Association
The federal government
List four (4) areas under this act, whereby interest funds received from a broker’s trust account may be dispersed.
Economic development, Research, Education, Other public service purposes
Economic development, Utilities, Education, Other public service purposes
Economic development, Rent, Education, Other public service purposes
Research, Education, Other public service purposes, Lawsuits
Buyers’ agency agreements, property listing agreements and cooperative brokerage agreements are referred to as what type of agreement?
Sales agreements
Representation Agreement
Lease agreements
Purchase agreements
When should a licensee not be liable for the paying of a referral fee?
When the referral is from a family member
When the referral is from a licensed broker
When reasonable cause for payment does not exist
When the referral is from a client
A person who encourages another to attend a sales presentation for time-share is known as what type of agent?
Sales agent
Referral agent
Acquisition agent
Promoter
A person who exchanges time-share intervals in an exchange program is known as what type of agent?
Exchange agent
Time-share agent
Interval agent
Swap agent
Is a time-share interest considered to be a real or personal property interest?
Real property interest
Personal property interest
Both real and personal property interest
Neither real nor personal property interest
Who has the authority to adopt additional rules or regulations to carry out the intent of time-share laws?
The developer
The Commission
The property owner
The state governor
Applications for registration of time-share must be updated and renewed how often?
Annually
Biannually
Every five years
Every ten years
Once permitted to sell time-share in Arkansas, may the developer then advertise or represent that the Commission has approved or recommended their time-share program?
Yes, always
No, never
Yes, but only with written consent
No, unless specified otherwise
Can time-share instruments create procedures for imposing a monetary penalty or suspension if an owner fails to comply with the time-share instruments?
Yes
No
Only for monetary penalties
Only for suspensions
What may a developer be charged with who violates the time-share act?
A misdemeanor
A felony
A civil infraction
A traffic violation
What is the maximum penalty that may be imposed upon a person who violates the time-share act?
$1,000
Fine up to $5,000 or 1 year in jail or both
$10,000
$50,000
Can punitive damages or attorneys’ fees be awarded for willful violation of this Act?
Yes
No
Only punitive damages
Only attorneys' fees
Does the Real Estate Recovery Fund pay compensatory (actual damage) awards for time-share violations by an agent?
Yes
No
Only for fraud cases
Only for contract breaches
Within what period of time must a judicial proceeding be commenced regarding the public offering statement or validity of a contract?
1 year
2 years
3 years
4 years
How long and from what date does a purchaser have the right to cancel a time-share contract with a developer?
Within 7 days after execution of contract
Within 5 days after execution of contract
Within 10 days after execution of contract
Within 15 days after execution of contract
Deposits made for a time-share must be placed in an escrow account with what two requirements regarding the account?
It must be non-interest bearing
and held in this state
It must be non-interest-bearing and state insured
It must be interest-bearing and state insured
It must be non-interest-bearing and federally insured
How long and from what date does a purchaser have the right to cancel a time-share contract with a developer?
For 5 days after execution of contract
For 7 days after execution of contract
For 15 days after execution of contract
For 10 days after execution of contract
How long and from what date does a developer have the right to cancel a time-share contract with a purchaser?
For 5 days after execution of contract
For 10 days after execution of contract
For 7 days after execution of contract
For 15 days after execution of contract
What disclosure must be given if a price or gift offering is made in order to get a person to consider buying a time-share?
The market value of the gift
Must disclose at the time of offer of gift in a clear and unequivocal manner the intent to offer a sales presentation
The expiration date of the offer
The legal implications of the offer
What is required if a purchaser’s name is to be used for promotional purposes such as mailings to third persons?
Express written or oral consent of purchaser
A handshake from the purchaser
Notification to the purchaser
No consent is required
Which of the following is NOT listed as a purpose for the funds allocated by the Commission?
Economic development
Research
Education
Infrastructure development
A notice of cancellation by a consumer is suggested to be sent to the developer by what method?
USPS standard mail
Registered mail
Fax
