In the state of Arkansas, as in most other states, real estate laws govern what an individual can and cannot do legally while working in the real estate profession. While there are many laws and regulations, a few of the major ones impacting the profession relate to the licensure of individuals and businesses wanting to list and sell property.
In Arkansas, real estate laws govern who can and cannot engage in the practice of selling real estate. Anyone who performs any activity listed in the A.C.A 17-42-103(12) must have a real estate license from the state in order to legally work as a broker or agent. Arkansas uses Pearson VUE as the organization that develops and administers the test for licensure. Passing the real estate exam is just one step in the licensure process.
Before the Arkansas Real Estate Commission (AREC) will grant a license, you'll have to be the age of majority, which is 18 in Arkansas; submit proof of your age, which can include a valid driver's license or birth certificate; and have 60 hours of education in real estate obtained from one of the state's recognized schools. The state will also conduct a background check prior to issuing the license.
Pearson VUE 5601 Green Valley Drive Bloomington, MN 55437-1099 952-681-3000 asisvcs.com
Arkansas Real Estate Commission 612 South Summit Street Little Rock, AR 72201-4740 501-683-8010 state.ar.us/arec
Arkansas real estate laws also affect real estate firms. In order to open a firm, an individual must file a form with the AREC for the firm's name. Once the AREC approves the name for the business, the firm must appoint a licensed principal broker. The principal broker is the person the state will hold responsible for maintaining all local, state and federal real estate laws, including ensuring that staff members have the proper licenses to perform the work they do. In addition, a firm may need an executive broker if the firm has more than one office operating under its name.
As part of the real estate firm's management, the principle broker will determine whether or not the firm should apply for trust account, which allows the business to separate funds received for things like escrows and trust funds in a special trust account.
Code of Ethics
The AREC and organization like the Arkansas Realtors Association have the right to enforce disciplinary action for any realtor in Arkansas who fails to comply with the laws and regulations for the industry. This can include willfully misrepresenting information, making false promises in order to sell a property or representing more than one party in a transaction.
In order to work as a realtor in Arkansas, you need to make sure you follow the Code of Ethics, which includes regulations like working with one party on a transaction to ensure you provide that party with the best possible negotiation. Real estate laws and regulations in Arkansas also cover things like contracts. Agents must provide clients with written copies of contracts complete with any required signatures. In some cases, the agent may need to fully disclose any aspects to the agreement such as compensation received from a listing agent.
Arkansas Realtors Association 11224 Executive Center Dr. Little Rock, AR 72211 501-225-2020 arkansasrealtors.net
- real estate contract image by Keith Frith from Fotolia.com