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The Arkansas Real Estate Commission (AREC) was created by which Arkansas statute?

ACA § 17-42

ACA § 17-39

ACA § 34-27

ACA § 4-27

to track

2026 Statistics

Key Facts: AR Real Estate Exam

110 Q

Scored Exam Questions

Pearson VUE AR candidate handbook

80 + 30

National + State Split

Pearson VUE AR candidate handbook

70%

Passing Score (Each Section)

AREC / Pearson VUE

60 hrs

Pre-License Education

ACA § 17-42-303

Age 18+

Minimum Age Requirement

ACA § 17-42-303

6 months

Post-License Deadline

ACA § 17-42-303(c)(1)

Arkansas requires 60 hours of pre-license education (30 in basic principles) from an AREC-approved school. The Pearson VUE exam has 80 national + 30 state scored questions, both at 70% passing. Minimum age is 18. After passing, you must apply to AREC within 90 days ($85 application fee if taking exam, or $160 if exempt). You must then complete post-license education within 6 months of initial licensure to remain active. All agency contracts must have a written expiration date (AREC Reg 8.3), all real estate agreements must be in writing, and trust accounts must be labeled 'trust' or 'escrow' at an FDIC-insured, non-interest bearing institution. Salespersons cannot deal independently of their principal broker.

Sample AR Real Estate Practice Questions

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1The Arkansas Real Estate Commission (AREC) was created by which Arkansas statute?

A.ACA § 17-42

B.ACA § 17-39

C.ACA § 34-27

D.ACA § 4-27

Explanation: The Arkansas Real Estate Commission is created and governed by Arkansas Code Annotated § 17-42, commonly called the Real Estate License Law. This statute grants AREC authority to license, regulate, and discipline real estate professionals in the state.

2Which of the following best describes AREC's primary purpose?

A.To promote real estate sales and increase home ownership in Arkansas

B.To license, regulate, and discipline real estate professionals to protect the public

C.To establish commission rates for real estate transactions statewide

D.To manage the Multiple Listing Service (MLS) for Arkansas brokers

Explanation: AREC's primary mission is consumer protection — licensing qualified individuals, setting educational standards, and disciplining licensees who violate the law or regulations. Protecting the public from unqualified or unethical practitioners is the foundation of any real estate regulatory body.

3AREC has the authority to do which of the following?

A.Set mandatory commission rates for all licensed brokers in Arkansas

B.Approve, suspend, or revoke real estate licenses and impose monetary penalties

C.Require all licensees to join the Arkansas REALTORS® Association

D.Regulate mortgage lending rates within the state

Explanation: AREC holds broad regulatory powers under ACA § 17-42, including examining applicants, approving or denying license applications, suspending or revoking licenses, conducting investigations, and imposing monetary fines. Setting commission rates would violate antitrust law, and AREC cannot mandate trade association membership.

4When a consumer files a complaint against an Arkansas licensee, who investigates the complaint?

A.The local board of REALTORS®

B.The Arkansas Real Estate Commission

C.The Arkansas Attorney General's office

D.The licensee's principal broker

Explanation: AREC has sole authority to investigate complaints against licensees under Arkansas license law. The Commission reviews complaints, conducts investigations, holds hearings, and renders disciplinary decisions. Local REALTOR® boards handle ethics complaints under their own code, which is separate from state licensing discipline.

5What is the purpose of the Arkansas Real Estate Recovery Fund?

A.To provide low-interest loans to first-time homebuyers in Arkansas

B.To reimburse consumers who suffer financial harm caused by a licensee's misconduct

C.To fund AREC's operational budget and staff salaries

D.To compensate licensees who lose money due to a transaction falling through

Explanation: The Recovery Fund is a consumer protection mechanism funded by licensee fees. When a court judgment against a licensee cannot be collected because the licensee lacks sufficient assets, an eligible consumer may apply to the Fund for reimbursement up to statutory limits. Licensees themselves are not eligible to claim from the Fund.

6Which disciplinary action is NOT within AREC's authority?

A.Revoking a real estate license

B.Imposing a monetary fine on a licensee

C.Suspending a real estate license pending a hearing

D.Sentencing a licensee to prison for fraud

Explanation: AREC is an administrative regulatory body and cannot impose criminal penalties such as imprisonment. AREC's disciplinary tools include license suspension, revocation, reprimand, and monetary penalties. Criminal prosecution for fraud is handled by law enforcement and courts, not the Commission.

7AREC regulations are adopted through which process?

A.By vote of the Arkansas General Assembly only

B.By AREC following the Arkansas Administrative Procedure Act

C.By the Governor's executive order

D.By majority vote of all licensed principal brokers in the state

Explanation: AREC is an administrative agency that adopts and amends its regulations following the Arkansas Administrative Procedure Act, which requires public notice and opportunity for comment. The General Assembly granted AREC rule-making authority under ACA § 17-42, so the legislature does not need to vote on each individual rule.

8After AREC conducts a hearing and issues a disciplinary order, what right does the licensee have?

A.No right to appeal; AREC's decision is always final

B.The right to appeal the order to an Arkansas circuit court

C.The right to demand re-examination before any penalty takes effect

D.The right to have the local REALTOR® board overturn the decision

Explanation: Under the Arkansas Administrative Procedure Act, a licensee aggrieved by an AREC final order has the right to seek judicial review by filing an appeal in an Arkansas circuit court. This ensures due process and a check on administrative authority.

9If AREC's Recovery Fund pays a claim on behalf of a licensee, what typically happens to that licensee's license?

A.The license is automatically renewed at the next renewal period

B.The license is immediately revoked and may not be reinstated until the Fund is repaid

C.The licensee receives a formal warning but keeps the license

D.The license is placed on probation for 90 days

Explanation: When the Recovery Fund pays a claim caused by a licensee's conduct, the licensee's license is revoked. The licensee cannot be relicensed until the full amount paid by the Fund — plus interest — is repaid. This provision protects the Fund's solvency and deters misconduct.

10Which exam administrator is authorized to administer the Arkansas real estate licensing examination?

A.ACT

B.Pearson VUE

C.Prometric

D.ETS

Explanation: Arkansas uses Pearson VUE to administer both the national and state portions of the real estate licensing examination. Candidates must schedule their exam through Pearson VUE and pass both portions to be eligible for licensure.

About the AR Real Estate Exam

The Arkansas real estate salesperson exam covers national real estate fundamentals plus Arkansas-specific topics under ACA § 17-42, including AREC licensing requirements, trust account rules, agency disclosure obligations, statutory requirements governing licensees, and the Recovery Fund. The state portion (30 items) is heavily weighted toward broker responsibilities, trust accounts, and agency relationships.

Questions

110 scored questions

Time Limit

5 hours

Passing Score

70% on each portion

Exam Fee

$150 (2-for-1 discount when both portions registered simultaneously) (Arkansas Real Estate Commission (AREC) / Pearson VUE)

AR Real Estate Exam Content Outline

45%

Arkansas License Law & AREC

AREC structure, powers, and duties (ACA § 17-42); licensing requirements (age 18, 60 hrs pre-license); post-license within 6 months; license types; annual renewal; Recovery Fund; disciplinary sanctions; reporting obligations

27%

Statutory Requirements for Licensees

Trust accounts (FDIC, 'trust/escrow' label, non-interest bearing); no commingling; earnest money handling; written agreements; expiration dates on agency contracts; self-dealing disclosure; advertising rules; principal broker supervision; executive brokers; BPOs; property management

15%

Agency Relationships & Disclosures

Seller agents, buyer agents, dual agents; written consent for dual agency; disclosure timing (first substantive contact); fidelity and honest dealing; required vs. waivable duties; failure to disclose consequences; subagency

13%

Other Statutory Requirements

Reporting criminal convictions, timeshare regulations, trade organization membership, antitrust, AREC investigations and hearings, reciprocity (70% minimum), violation penalties

How to Pass the AR Real Estate Exam

What You Need to Know

Passing score: 70% on each portion
Exam length: 110 questions
Time limit: 5 hours
Exam fee: $150 (2-for-1 discount when both portions registered simultaneously)

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

AR Real Estate Study Tips from Top Performers

1Know ACA § 17-42 — it's the foundation of Arkansas real estate law and governs all AREC licensing and disciplinary authority

2Master trust account rules: labeled 'trust' or 'escrow', FDIC institution, non-interest bearing, no commingling, principal broker solely responsible

3Remember the post-license requirement: must be completed within 6 months of initial licensure (not 12 months) to remain active

4Agency contracts MUST have a written expiration date — this is AREC Regulation 8.3 and is heavily tested

5Salespersons cannot deal independently of their principal broker — all compensation flows through the principal broker

6Self-dealing: any licensee buying or selling for their own account must disclose their licensed status in writing (ACA § 17-42-311)

Frequently Asked Questions

How many questions are on the Arkansas real estate salesperson exam?

The Arkansas salesperson exam has 110 scored questions: 80 national general questions and 30 Arkansas-specific state law questions. There are also 15 unscored pretest items (5 national + 10 state). You must score at least 70% on each section separately. Pearson VUE administers both portions.

What are the education requirements for an Arkansas real estate license?

Arkansas requires 60 hours of pre-license education from an AREC-approved school, of which at least 30 hours must be in the basic principles of real estate. After passing the exam, you must apply within 90 days and complete a post-license course within 6 months of initial licensure. Failure to complete post-license education causes your license to go inactive.

What are Arkansas trust account requirements for real estate?

Arkansas principal brokers must maintain a separate trust account (not their personal or business account) for all client funds. The account must be labeled 'trust' or 'escrow' and kept at an FDIC-insured institution. Generally, trust accounts must be non-interest bearing unless participating in the IREBTA (Interest on Real Estate Brokers' Trust Account) program. The principal broker is solely responsible for trust account compliance — no commingling is permitted.

Do Arkansas real estate agency contracts require an expiration date?

Yes. AREC Regulation 8.3 requires that all agency agreements have a definite written termination date. A listing or buyer agency agreement without a written expiration date violates Arkansas law and can result in disciplinary action. This is one of the most commonly tested state-specific topics on the Arkansas exam.