Arkansas Real Estate License Law and Commission Rules
Who Regulates What
The Arkansas Real Estate Commission (AREC) administers the license law, adopts rules, investigates complaints, and disciplines licensees through reprimand, fine, suspension, revocation, or probation. A salesperson must be associated with and supervised by a licensed broker; commissions cannot be paid to an unlicensed person. No one may perform brokerage for compensation without a license, and unlicensed assistants may only do clerical work.
Duties the Commission Enforces
Core compliance items: written agency disclosure and written agreements; truthful advertising that identifies the firm; accurate records and retention; separate escrow/trust accounts with no commingling; prompt accounting for funds; supervision of associated licensees by the broker; and cooperation with investigations. Violations include misrepresentation, failure to disclose a material fact, undisclosed dual compensation, and commingling.
Renewal and Education
Licenses renew on the Commission's cycle and require continuing education; the specific hour counts and deadlines change, so verify the current numbers in the AREC rules rather than memorizing an outdated figure. Arkansas also maintains a recovery fund that may reimburse consumers harmed by a licensee's misconduct, subject to statutory limits and conditions.
Traps and Rule of Thumb
Trap: assuming a licensee may accept a fee directly from a buyer without the broker's knowledge. Trap: thinking the Commission can award damages to a consumer - it disciplines, it does not litigate private disputes.
Rule of thumb: every dollar question is a trust-account question. If funds are not the licensee's, they go into the broker's escrow account and get accounted for promptly.