A candidate in another state is preparing to obtain an Arkansas real estate license through reciprocity. She holds a broker license in her home state and wants to practice at the broker level in Arkansas without opening her own brokerage. Which Arkansas license category should she apply for?
Correct Answer
A) Broker-associate, allowing her to practice at the broker level under a designated broker
Under Arkansas law and AREC reciprocity rules, an out-of-state broker who wishes to practice in Arkansas at the broker level but does not intend to open an independent brokerage should apply for a broker-associate license. This category is appropriate for individuals who have met broker-level qualifications but will work under the supervision of an Arkansas designated broker, which is the correct structure for practicing without independent brokerage authority.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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