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WorksheetsArkansas License Law / Time Share Law (Quiz 4 of 4)
Total questions: 59
Worksheet time: 30mins
Who is generally responsible for all business conducted by the firm?
Executive Broker
Principal Broker
Associate Broker
Salesperson
Who, besides the Principal Broker, may legally have supervisory responsibility delegated to them?
Salesperson
Associate Broker
Executive Broker
Client
Who is responsible for the activities of an Executive Broker?
The Executive Broker themselves
The Principal Broker
The Salesperson
The Client
List four (4) areas of instruction a principal or an executive broker are to provide to those licensed under them.
Instruct with regard to fundamentals of real estate, Instruct with regard to ethics of profession, Keep them informed of all changes & developments of Arkansas Real Estate Law & Commission Regulations, Exercise strict supervision
Instruct with regard to fundamentals of real estate, Instruct with regard to ethics of profession, Keep them informed of all changes & developments of Arkansas Real Estate Law & Commission Regulations, Exercise lax supervision
Instruct with regard to basics of real estate, Instruct with regard to profitability of profession, Keep them informed of all changes & developments of Arkansas Real Estate Law & Commission Parties, Exercise no supervision
Instruct with regard to basics of real estate, Instruct with regard to profitability of profession, Keep them informed of all changes & developments of Arkansas Real Estate Law & Commission Parties, Exercise strict supervision
The exercising of strict supervision of licensees within a firm is placed on whom?
The Salesperson
The Client
The Principal Broker & Executive Broker
The Firm's Owner
If a principal broker is excluded from participating in a closing, what is still their requirement?
To provide written instructions to the 3rd party closing transactions
To provide verbal instructions to the 3rd party closing transactions
To provide no instructions to the 3rd party closing transactions
To provide a phone call to the 3rd party closing transactions
When is a principal broker restricted against hiring agents to work under them?
When they are under investigation
When they have a conflict of interest
If they are gainfully employed or engaged in a non-real estate related field
When they are not licensed
As a minimum, any property advertised for sale or rent, including the licensee’s own property, must include what specific item of information?
Name of the firm with whom they are licensed
Date that they became licensed
Name of the owner of the firm with whom they are licensed
Name of the licensee
Are there circumstances whereby the agent’s individual names or telephone numbers may be a part of the advertising?
Yes – as long as the licensee’s connection with the broker is obvious in ad
Yes – as long as the licensee’s home address is obvious in ad
No, never
Yes – as long as the licensee approves it
What is the purpose of the requirement that “a licensee shall exert reasonable efforts to ascertain those facts, which are material to the value or desirability of every property”?
To avoid licensee’s intentional or negligent misrepresentation to the public
To increase the property value
To expedite the sale process
To reduce the paperwork involved
When earnest money is received by an agent, how soon and to whom must it be delivered?
To the Seller immediately
Within 24 hours to the principal broker
To Principal Broker immediately
Within a week to the buyer
How long must complete records pertaining to a real estate transaction be maintained by the principal broker?
1 year
3 years
5 years
7 years
If a real estate firm ceases to do business, who is responsible for maintaining the records of the firm?
The last principal broker remaining with the firm
The state commission
The last accountant remaining with the firm
The firm's legal advisor
If a firm closes and custody of records are given to another party, what three (3) things must be furnished to the Commission regarding that person or firm?
Name, address, and phone number of the place where records are maintained
Name, address and email of the place where records are maintained
Name, phone number, and email of the place where records are maintained
Name, address, and license number of the place where records are maintained
Clients’ moneys, earnest moneys, rents deposits, etc. which are received by the principal broker but do not belong to them are referred to as what type of funds?
Trust funds
Personal funds
Business funds
Operational funds
Who is solely responsible and accountable for all trust funds received by a firm?
The firm's accountant
The principal broker
The real estate agent
The firm's legal advisor
Accounts into which client funds are placed must include, along with the account name, one of what two choices to indicate it is other people’s money?
Trust or escrow
Personal or business
Operational or savings
Checking or savings
Under what two (2) conditions may a principal broker have some of their own money in an escrow account and it not be deemed as commingling?
If bank has minimum balance to keep account open, if bank requires service charge for account, broker may keep amount not to exceed total of 6 months service charges
If bank has maximum balance to keep account open, if bank requires service charge for account, broker may keep amount not to exceed total of 6 months service charges
If bank has minimum balance to keep account open, if the broker's personal account cannot accept their money until Monday, broker may keep amount not to exceed total of 3 months service charges
If bank has minimum balance to keep account open, if bank requires service charge for account, broker may keep amount not to exceed total of 12 months service charges
What is the maximum amount a broker can place of the own money into an escrow account to cover bank service charges?
Amount to cover 6 months’ service charges
Amount to cover 2 months’ service charges
Amount to cover 12 months’ service charges
Amount to cover 3 months’ service charges
What are the five (5) things the principal broker must submit to the Commission regarding their trust account?
(1) Name of account
(2) Number of account
(3) Name of bank
(4) Address of bank
(5) Date account was opened
(1) Name of broker
(2) Number of account
(3) Name of bank
(4) Phone number of bank
(5) Date account was opened
(1) Name of account
(2) Number of employees
(3) Name of bank
(4) Email of bank
(5) Date account was opened
(1) Name of account
(2) Number of account
(3) Name of teller
(4) Address of bank
(5) Date account was opened
How soon following the execution of a contract must the earnest money be placed into an escrow account?
12 days
3 days
5 days
1 day
What is the provision if the third day for required depositing of earnest money falls on a Saturday, Sunday or legal holiday?
Must be deposited the next non-Saturday, Sunday or holiday day
Must be deposited the next Tuesday
Must be deposited as soon as the broker returns from vacation
Must be deposited the next Wednesday
How often must escrow account bank statements be reconciled?
At least monthly
At least weekly
At least twice weekly
Once annually
How long must bank reconciliations on trust accounts be maintained?
3 years
2 years
5 years
7 years
In a coop transaction, who presents the offer to a seller?
The buyer's agent
The listing firm
The seller
The seller's agent
On agent-owned rentals, what two (2) things are required if the agent wishes to keep the tenant’s security deposits in their own account and not be required to place them in the trust account of their broker?
(1) Licensee must have written agreement w/ tenant stating licensee may keep deposit
(2) Copy of agreement be furnished to Principal Broker
(1) Licensee must have verbal agreement w/ tenant stating licensee may keep deposit
(2) Copy of agreement be furnished to Executive Broker
(1) Licensee must have handshake agreement w/ tenant stating licensee may keep deposit
(2) Copy of agreement be furnished to Office Manager
(1) Licensee must have written agreement w/ office manager stating licensee may keep deposit
(2) Copy of agreement be furnished to Executive Broker
What are seven (7) approved reasons for disbursing funds from a trust account?
(1) Upon rejection of offer
(2) Upon withdrawal of offer not yet accepted
(3) At closing of transaction
(4) Upon written agreement signed by all parties and is separate from contract which directs broker to hold funds
(5) Upon filing of interpleader action in court
(6) Upon order of court
(7) Upon reasonable interpretation of contract which directed broker to deposit funds
(1) Upon acceptance of offer
(2) Upon withdrawal of accepted offer
(3) At beginning of transaction
(4) Upon written agreement signed by all parties and is separate from contract which directs broker to hold funds
(5) Upon filing of interpleader action in court
(6) Upon order of court
(7) Upon reasonable interpretation of contract which directed broker to deposit funds
(1) Upon acceptance of offer
(2) Upon withdrawal of accepted offer
(3) At beginning of transaction
(4) Upon verbal agreement signed by all parties and is separate from contract which directs broker to hold funds
(5) Upon filing of interpleader action in court
(6) Upon order of court
(7) Upon reasonable interpretation of contract which directed broker to deposit funds
(1) Upon acceptance of offer
(2) Upon withdrawal of accepted offer
(3) At beginning of transaction
(4) Upon written agreement signed by all parties and is separate from contract which directs broker to hold funds
(5) Upon filing of interpleader action in court
(6) Upon order of executive broker
(7) Upon reasonable interpretation of contract which directed broker to deposit funds
Does license law require non-exclusive agency agreements to be in writing?
It is strongly recommended
It is not recommended
It is mandatory
It is strongly discouraged
If a licensee is buying or selling their property, what two (2) things must they fully disclose?
(1) That they are licensed and are buying, renting, leasing for their own account
(2) That they have an interest in property which they are selling, renting or leasing disclosures be in writing before contract is entered into
(1) That they are licensed and are buying, renting, leasing for their own account
(2) That they have an interest in property which they are selling, renting or leasing disclosures be in writing after contract is entered into
How soon must an offer on property be presented to the seller?
Promptly
Within a month
Within two weeks
Within the year
In addition to a buyer’s signature on an offer to purchase, what two (2) additional signatures are also required on the offering instrument?
Licensee who receives it and licensee’s supervising broker
Licensee who receives it and licensee’s office manager
Licensee who receives it and seller's agent
Licensee who receives it and licensee’s assistant
Does an offer to purchase also have to have the signatures of the listing agent and his or her supervising broker?
Yes
No
Not if the supervising broker is out of town
Not if the listing agent is sick that day
Without prior permission, may a selling licensee contact the seller directly if another firm holds an exclusive listing contract on the property?
Yes
No
Unless otherwise authorized by the owner, For Sale signs should only be on the property during which period of time?
During existence of listing agreement
After the sale is completed
Before the property is listed
At any time
If a licensee is convicted of any crime, other than a traffic violation, how long do they have to make a written report to the Commission?
10 days
30 days
60 days
90 days
If a licensee wishes to seek a waiver of the continuing education requirement, how must they make such a request?
By phone
In person
In writing
Through an online form
How many hours of post-license education are required for a salesperson?
10 hours
18 hours
40 hours
50 hours
How many hours of post-license education are required for a broker?
10 hours
30 hours
40 hours
50 hours
Can post-license education be obtained through correspondence?
Yes
No
Only for brokers
Only for salespersons
Who establishes the course content for post-license education?
The state government
The real estate commission
The broker
The salesperson
How long does a salesperson or broker licensee have to complete their post-license education after obtaining their license?
6 months
End of 6th month following date of initial license
2 years
3 years
If a salesperson or broker fails to obtain their post-license education in the stipulated time frame, what will be the status of their license?
Active
Inactive
Suspended
Revoked
Can a person who passed the broker’s exam be classified as either Principal or Executive Broker prior to completion of the thirty (30) hour broker’s post-license course?
Yes
No
Only if they have prior experience
Only if they have a special permit
What entity was established by law that is the designated recipient of funds generated under Act 690 of 1993?
Real Estate Commission
State Treasury
Department of Housing
Arkansas Real Estate Foundation, Inc.
Under what three (3) provisions may a broker place escrow funds into an interest-bearing account?
When required to do so by law, by valid regulation of any governmental agency, and while participating in interest on Real Estate Brokers Trust Account Program
With verbal consent of all parties, for any purpose, and under federal law
With written consent of the broker, for a specific purpose, and under federal law
When required to do so by law, by valid regulation of any insurance agency, and while participating in interest on Real Estate Brokers Trust Account Program
A purchaser of time-share has how long to cancel the agreement to purchase?
3 days
5 days
7 days
10 days
Can the purchaser’s right to cancel a contract for purchase be waived?
Yes
No
Only under special circumstances
Only with the developer’s consent
Where must the purchaser’s right to cancel appear in writing and at least what size type must it appear?
On front of public offering statement, in at least 10-pt bold face type
On front of public offering statement, in at least 14-pt bold face type
On second page of public offering statement, in at least 12-pt bold face type
In the contract, 16-point type
How soon should funds which have been received by the developer be returned to a prospective purchaser of time-share if they cancel the contract within the allotted time period?
Within 7 days of receipt of notice of cancellation
Within 15 days of receipt of notice of cancellation
Within 30 days of receipt of notice of cancellation
Within 10 days of receipt of notice of cancellation
How long is the developer to maintain records of their time-share activities?
1 year
2 years
3 years
5 years
In time-share references to the term “Reasonable time” is to be presumed as what period of time?
30 days
60 days
90 days
120 days
Is a person auctioning real estate in Arkansas required to hold both an Arkansas Real Estate License and an Arkansas Auctioneer’s License?
Yes
No
Only if the property value exceeds $100,000
Only if the auction is held online
Does “Buyer’s Premium” mean a buyer will pay more for the item than the actual bid amount they made on the item?
Yes
No
Only if the seller agrees
Only if the auction is held in person
If a property is sold to the highest bidder with no minimum bid having been established, what type of auction is this referred to as?
Reserve auction
Absolute auction
Sealed bid auction
Dutch auction
If a minimum bid has been established and the seller has the right to reject any and all bids, what type of auction is this referred to as?
Reserve auction
Absolute auction
Sealed bid auction
Dutch auction
Unless explicit terms state otherwise, will real estate auctions be considered to be “with reserve” or as “absolute or without reserve”?
With reserve
Absolute or without reserve
Sealed bid
Dutch auction
Does an auctioneer have to have a written agreement with the owner regarding the terms of the sale?
Yes
No
Only if the property value exceeds $100,000
Only if the auction is held online
Does the seller have to agree if the Auctioneer wishes to bid on the property?
Yes
No
Only if the property value exceeds $100,000
Only if the auction is held online
Immediately prior to opening the bidding on real estate, what two (2) things must the auctioneer announce to those in attendance?
The terms and conditions of auction and if the seller and/or auctioneer or others on their behalf may bid on or purchase the real estate being auctioned
The terms and conditions of auction and if they plan to rent the real estate being auctioned
The name and address of the seller
The name and address of the auctioneer's place of business
