In Arkansas, broker-associate Rachel has completed all broker-level requirements and works under designated broker Howard at a Jonesboro firm. A client asks Rachel if she can independently list and sell a property without Howard's involvement. Under AREC rules, Rachel's correct response should be that she:
Correct Answer
C) Cannot act independently because broker-associates must work under a designated broker
Under AREC rules, a broker-associate has met broker-level education and experience requirements but is specifically classified as working under the supervision of a designated broker. The broker-associate category does not confer the right to operate independently. Rachel must conduct all real estate activities under Howard's supervision and through Howard's brokerage.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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