Arkansas Real Estate Salesperson State Portion

Arkansas Real Estate Salesperson, State Portion

Key Concepts

General powers and records - Copies of all records and papers in the office of the Commission, when certified and authenticated by the Commission, shall be received in evidence in all courts equally and with like effect as the originals (§ 17-42-203(d)). - When a subpoena is issued at a party's request, the fees and mileage of the officers serving the subpoena and of the witness are paid by the party at whose request the witness is subpoenaed (§ 17-42-205(c)(2)(B)). Requests for subpoenas must be in writing, and the person requesting bears the burden of obtaining and serving it; fees and mileage of officers serving subpoenas and of witnesses subpoenaed are as provided by Regulation 45(d) of the Arkansas Regulations of Civil Procedure (Regulation 1.6(a), (c)).

Complaints, investigations, hearings, appeals - If the complaint fails to state a prima facie case, or if after investigation there is insufficient proof, the Executive Director shall dismiss the complaint (§ 17-42-312(a)(2)). - A dismissal may be appealed to the Commission; the request must be in writing and received in the Commission office no later than 60 days following the date of dismissal (§ 17-42-313(a)(1)). If the review results in a hearing being ordered, both the filing fee and the cost of preparing the record are refunded to the appellant (§ 17-42-313(a)(3)(B)). The appeal filing fee is $100.00 (Regulation 3.1(a)(12)). - Within 20 days after service of the complaint, the licensee shall file a written answer with the director, dated and signed under oath (Regulation 9.2(b)). - All motions concerning or related to a hearing must be in writing and filed at the Commission office…

Key Concepts

A license is required — and one act is enough. "The commission of a single act by a person required to be licensed under this chapter and not so licensed shall constitute a violation of this chapter" (§ 17-42-301(c)). Civil penalties for unlicensed activity are addressed at § 17-42-109, and criminal sanctions at § 17-42-105. Exemptions appear at § 17-42-104.

Types of licenses (§ 17-42-103). "Licensee" means an individual who holds any type of license issued by the commission and "includes a principal broker, an executive broker, an associate broker, and a salesperson" (§ 17-42-103(8)). - Principal broker — an individual expecting to act or acting for another for a fee, commission, or other consideration who performs the acts listed in § 17-42-103(10) (selling, exchanging, purchasing, renting, leasing, listing, auctioning, collecting rent, advertising, procuring prospects, etc.). - Executive broker — holds a broker's license, is employed by or associated as an independent contractor with a principal broker, and works under the principal broker's supervision; an executive broker "may supervise associate brokers and salespersons" (§ 17-42-103(7)). - Associate broker — holds a broker's license, works under a principal broker or executive broker, and "shall have no supervisory authority over any other licensee" (§ 17-42-103(1)).

Pre-license education. For a salesperson applicant, "the maximum number of education hours required… shall not exceed 90 hours, at least 30 hours of which shall be in the basic principles of real estate" (§ 17-42-303(a)(2)).

Key Concepts

Dealing independently of principal broker (Reg. 10.1) - If a principal broker learns a salesperson has engaged in real estate activities independently or through another broker without permission, the principal broker must immediately notify the Commission in writing and forward that licensee's license to the Commission (Reg. 10.1(a)). If permission was granted, this reporting duty is not triggered. - A salesperson, associate broker, or executive broker who acts independently or through another broker without permission is presumed to be in violation of A.C.A. § 17-42-311 (Reg. 10.1(b)). Representing or attempting to represent a broker other than the affiliated principal broker without express knowledge and consent is a prohibited act (A.C.A. § 17-42-311(a)(9)), as is accepting a commission or valuable consideration from anyone except the licensed principal broker under whom the licensee is licensed (A.C.A. § 17-42-311(a)(8), disciplinary action per § 17-42-312).

Agency agreements (Regs. 10.2, 10.10) - All written agency agreements or contracts, and any extensions, must state a specific determinable duration or specific expiration date (Reg. 10.2). - Exclusive agreements must be in writing; non-exclusive agency agreements are strongly recommended to be written but not required (Reg. 10.10(a), (b)). - Real estate forms used in the regular course of business must be approved by a licensed Arkansas attorney prior to use (Pope County Bar Association, Inc. vs. Suggs) (Reg. 10.10(c)).

Arkansas Real Estate Salesperson, State Portion

Key Concepts

Reporting violations (Regulation 10.14) - It is the duty of each licensee to report in writing to the Commission any information that is or may be a violation of the Arkansas Real Estate License Law or Commission Regulations. Mishandling of trust funds (for example, depositing earnest money into a personal account rather than the broker's trust account) is such a violation and must be reported. (Ar Re Regulations, Regulation 10.14)

Criminal convictions — licensee reporting (Regulation 10.16(a)) - A licensee convicted of, or pleading guilty or nolo contendere to, any crime other than a traffic violation must make a written report to the Commission within thirty (30) days after the conviction or plea. (Regulation 10.16(a))

Criminal convictions — applicant reporting (Regulation 10.16(c)) - An applicant who already has a prior conviction (other than a traffic violation) must furnish the required written report at the time the application is submitted. If the action has not yet occurred, the report must be made immediately after it occurs. (Regulation 10.16(c))

Prohibited acts / disciplinary action (§ 17-42-311) - § 17-42-311(a)(3): Being convicted of or pleading guilty or nolo contendere to a felony listed under § 17-3-102, or a crime involving violence, fraud, dishonesty, untruthfulness, or untrustworthiness — regardless of whether imposition of sentence has been deferred or suspended — is a prohibited act subjecting the licensee to disciplinary action. - § 17-42-311(a)(8): A salesperson may not accept a commission or valuable consideration for licensed activities from any person except the principal broker under whom the salesperson is licensed. - § 17-42-311(a)(9): Acting as a broker or salesperson while not licensed with a principal broker…

Arkansas Real Estate Salesperson, State Portion

Key Concepts

General disclosure requirement - In every real estate transaction involving a licensee, the licensee shall clearly disclose to all parties or to their agents which party or parties he or she is representing (§ 17-42-108(a)(1)). - A licensee may represent more than one party to a transaction pursuant to and subject to rules of the Arkansas Real Estate Commission (§ 17-42-108(a)(2)). - The Commission determines the timing, method, and other requirements of agency disclosure and the consequences of failure to disclose (§ 17-42-108(b)).

Seller or lessor agents (Regulation 8.1) - A seller's agent must disclose the agency relationship with the seller in a timely manner so as to avoid, to the extent possible, eliciting or receiving from the prospective buyer information reasonably expected to remain confidential — financial situation, negotiating strategies, or motivations (Reg. 8.1(a)(1)). - When disclosure is made to the buyer's or lessee's licensed agent, it is that licensee's duty to convey the disclosure to the buyer or lessee in a timely manner (Reg. 8.1(a)(2)). - Disclosure shall be in writing but may initially be made orally and reduced to writing at a convenient time; evidence of the disclosure shall be maintained by the licensee (Reg. 8.1(b)). - Disclosure must be in writing before the buyer or lessee signs any document related to the transaction (Reg. 8.1(c)).