1. Real Estate License Law
      Table of Contents
      Real Estate License Law - General Provisions
      Arkansas Real Estate Commission.
      Licenses.
      Applicability - Real Estate Recovery Fund - Disciplinary Actions.
      Renewal of Licenses.
      Interest on Trust Accounts Program.

2. Real Estate Time-Sharing
      Table of Contents
      General Provisions.
      Administration and Registration.
      Creation, Termination, and Management.
      Protection of Purchasers.
      Advertising.
      Financing.

3. Regulations
4. Federal Fair Housing Laws Summary Information

Subchapter 1 - Real Estate License Law - General Provisions.

  17-42-101.  Title.
  17-42-102.  Legislative findings and intent.
  17-42-103.  Definitions.
  17-42-104.  Exemptions.
  17-42-105.  Criminal sanctions.
  17-42-106.  Injunction.
  17-42-107.  Capacity to sue and be sued.
  17-42-108.  Disclosure requirement.

Subchapter 2 - Arkansas Real Estate Commission

  17-42-201.  Creation - Members.
  17-42-202.  Organization - Employees.
  17-42-203.  Powers and duties.
  17-42-204.  Disposition of funds - Fund created.
  17-42-205.  Subpoenas and subpoenas duces tecum.

 Subchapter 3 - Licenses

  17-42-301.  License required - Violations.
  17-42-302.  Issuance or denial of license.
  17-42-303.  Educational requirements.
  17-42-304.  Fees.
  17-42-305.  Nonresident license requirements.
  17-42-306.  Application procedure.
  17-42-307.  Expiration and renewal.
  17-42-308.  Inactive license.
  17-42-309.  Place of business.
  17-42-310.  Change of name or address - Lost license or card.
  17-42-311.  Violations.
  17-42-312.  Investigation of complaint - Penalties.
  17-42-313.  Dismissal of complaint - Appeal.
  17-42-314.  Hearings.
  17-42-315.  Criminal background check

Subchapter 4 - Applicability - Real Estate Recovery Fund - Disciplinary Actions

  17-42-401.  Applicability.
  17-42-402.  Construction.
  17-42-403.  Creation - Administration.
  17-42-404.  Fees - Use of fund.
  17-42-405.  Additional fees.
  17-42-406.  Disciplinary hearing - Procedure.
  17-42-407.  Jurisdiction.
  17-42-408.  Appeal.
  17-42-409.  Subrogation - Suspension of license.

 Subchapter 5 - Renewal of Licenses

  17-42-501.  Renewal or reactivation requirements.
  17-42-502.  Curriculum.
  17-42-503.  Nonqualifying courses or events.
  17-42-504.  Qualifying courses.
  17-42-505.  Instructor credentials.
  17-42-506.  Credit - Certificate of attendance.
  17-42-507.  Monitoring courses.

Subchapter 6 - Interest on Trust Accounts Program

  17-42-601.  Establishment of program.
  17-42-602.  Notice.
  17-42-603.  Disposition of funds.

SUBCHAPTER.

1.  REAL ESTATE LICENSE LAW - GENERAL PROVISIONS.
2.  ARKANSAS REAL ESTATE COMMISSION.
3.  LICENSES.
4.  APPLICABILITY - REAL ESTATE RECOVERY FUND - DISCIPLINARY  ACTIONS.
5.  RENEWAL OF LICENSES.
6.  INTEREST ON TRUST ACCOUNTS PROGRAM.

SECTION.

17-42-101.  Title.
17-42-102.  Legislative findings and intent.
17-42-103.  Definitions.
17-42-104.  Exemptions.
17-42-105.  Criminal sanctions.
17-42-106.  Injunction.
17-42-107.  Capacity to sue and be sued.
17-42-108.  Disclosure requirement.

This chapter shall be known as the "Real Estate License Law."

The legislature finds that it is necessary to regulate the practice of real estate brokers and salespersons in order to protect the public health, safety, and welfare. It is the legislature's intent that only individuals who meet and maintain minimum standards of competence and conduct may provide service to the public.

As used in this chapter, unless the context otherwise requires:
(1)  "Associate broker" shall mean an individual who has a broker's license and who is employed by a principal broker, or is associated with a principal broker as an independent contractor, and who participates in any activity described in subdivision (12) of this section while under the supervision of a principal broker or executive broker; provided, however, that an associate broker shall have no supervisory authority over any other licensee;
(2)  "Branch office" shall mean a real estate principal broker's office other than his or her principal place of business;
(3)  "Board" shall mean the State Board of Private Career Education;
(4)  "Classroom hour" shall mean a period of at least fifty (50) minutes, but not more than sixty (60) minutes, of actual classroom instruction with the instructor present;
(5)  "Commission" shall mean the Arkansas Real Estate Commission;
(6)  "Continuing education" shall mean postlicensure education derived from participation in courses in real estate-related subjects which have been approved by the board or which are not required to be approved by the board;
(7)  "Continuing education unit" shall mean a period of ten (10) contact hours of actual classroom instruction with the instructor present;
(8)  "Director" shall mean the Executive Director of the Arkansas Real Estate Commission;
(9)  "Executive broker" shall mean an individual who has a broker's license and who is employed by a principal broker or associated with a principal broker as an independent contractor and who participates in any activity described in subdivision (12) of this section while under the supervision of a principal broker; provided, however, that an executive broker may supervise associate brokers and salespersons;
(10)(A)  "Licensee" shall mean an individual who holds any type of license issued by the commission and, unless the context clearly requires otherwise, shall include a principal broker, an executive broker, an associate broker, and a salesperson.
(B)  Nothing in this chapter shall preclude a licensee from doing business as a professional corporation pursuant to § 4-29-101 et seq.;
(11)  "Participate in a real estate auction" shall mean any act or conduct done for compensation or the expectation thereof and designed, intended, or expected to affect the bidding or results of a real estate auction, including, without limitation, serving as an auctioneer or ringman or encouraging, soliciting, or receiving bids;
(12)  "Principal broker" shall mean an individual, while acting for another for a fee, commission, or other consideration, or the expectation thereof, who:
(A)  Sells, exchanges, purchases, rents, or leases real estate;
(B)  Offers to sell, exchange, purchase, rent, or lease real estate;
(C)  Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rent, or lease of real estate;
(D)  Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange;
(E)  Auctions, offers, attempts, or agrees to auction real estate, or participates in a real estate auction;
(F)  Buys, sells, offers to buy or sell, or otherwise deals in options on real estate or improvements thereon;
(G)  Collects, offers, attempts, or agrees to collect rent for the use of real estate;
(H) Advertises or holds himself out as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate;
(I)  Assists or directs in the procuring of prospects calculated to result in the sale, exchange, lease, or rent of real estate;
(J)  Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, lease, or rent of real estate;
(K)  Engages in the business of charging an advance fee in connection with any contract whereby he or she undertakes to promote the sale or lease of real estate either through its listing in a publication issued for such purpose or for referral of  information concerning such real estate to brokers, or both; or
(L)  Performs any of the foregoing acts as an employee of or on behalf of the owner of, or any person who has an interest in,  real estate;
(13)(A)  "Real estate" shall mean and include leaseholds or any other interest or estate in land and shall include the sale and resale of time-share units.
(B)  Unless the context otherwise requires, the words "real estate" and "real property" shall be synonymous; and
(14)  "Salesperson" shall mean an individual who has a salesperson's license and who is employed by a principal broker or is associated with a principal broker as an independent contractor and who participates in any activity described in subdivision (12) of this section while under the supervision of a principal broker or executive broker.

(a)  The provisions of this chapter shall not apply to:
(1)  Any person not licensed under this chapter who performs any of the acts described in
§17-42-103(12) with regard to the property owned, leased, or purchased by him or her;
(2)  An attorney in fact under a duly executed and recorded power of attorney from the owner or lessor authorizing the final consummation by performance of any contract for the sale, lease, or exchange of real estate, provided that the attorney in fact receives no fee, commission, or other consideration and has no expectation thereof, directly or indirectly, for performing any such act;
(3)  An attorney at law in the performance of his or her duties as an attorney at law;
(4)  Any person acting as receiver, trustee in bankruptcy, administrator, executor, or guardian, or while acting under a court order or under the authority of a will or of a trust instrument;
(5)  Any person acting as a resident manager when such resident manager resides on the premises and is engaged in the leasing of real property in connection with his or her employment;
(6)  Any officer or employee of a federal agency or state government, or any political subdivision thereof, in the performance or conduct of his or her official duties;
(7)  Any multiple listing service wholly owned by a nonprofit organization or association of real estate licensees; or
(8)  An officer of a corporation or a general partner of a partnership with respect to real property owned or leased by the corporation or partnership, or in connection with the proposed purchase or leasing of real property by the corporation or partnership, provided that such acts are not performed by the officer or partner for or in expectation of special compensation and provided further that such acts are not performed as a vocation of the officer or partner.
(b)  Any real estate broker licensed by the Arkansas Real Estate Commission on or before January 1, 1985, who is engaged in the sale of real estate by auction only is authorized to employ real estate salespersons to work under the license of the broker even though the broker is employed in a non-real estate related field and is only a part-time broker.

(a)  Any person acting as a real estate broker or salesperson within this state who does not hold a valid active Arkansas license or who otherwise violates any of the provisions of this chapter shall be guilty of a Class D felony and, upon conviction, punished accordingly.
(b)  Any officer or agent of a corporation or member or agent of a firm, partnership, co-partnership, or association who shall personally participate in or in any way be accessory to any violation of this chapter by the firm, partnership, co-partnership, association, or corporation shall be subject to all the penalties prescribed in this section for individuals.
(c)  Any commissioner, the executive director, or other designee, or any licensee residing in the county where the violation occurs may by affidavit institute criminal proceedings against any violator of this chapter without having to file a bond for costs.
(d)  The prosecuting attorney for each county shall prosecute any violation of the provisions of this chapter which occurs in his or her county.

(a)  Whenever there is reason to believe that any person, licensed or unlicensed, has violated any provision of this chapter, or any order, license, decision, demand, or requirement issued or made pursuant to this chapter, the commission, the executive director, or other designee may bring an action in the chancery court of any county in which the person resides or does business to enjoin such person from continuing such violation or engaging therein or doing any act or acts in furtherance thereof.
(b)  Whenever there is reason to believe a person is acting as a real estate broker or salesperson in this state without a valid active Arkansas license, any licensee within the county where the violation occurs may bring an action in the chancery court to enjoin such person from continuing such violation or engaging therein or doing any act or acts in furtherance thereof.
(c)  In any action brought pursuant to this section, the chancery court shall have jurisdiction and authority to enter such preliminary or final injunction or such other relief as may be appropriate.

   (a)  No action or suit shall be instituted, nor recovery be had, in any court of this state by any person or other legal entity for compensation for performance of any acts described in §17-42-103(12) unless at the time of offering to perform and performing any such act or procuring any promise to contract for the payment of compensation for any such contemplated act, the person holds an active license under this chapter as a principal broker, or the person or other legal entity was the owner of the real estate firm which contracted for or otherwise performed the acts for the compensation which is the subject of the action or suit through either a principal broker or a person approved by the commission under §17-42-301(f) while licensed or approved by the commission at the time of the acts.
   (b)  No salesperson, executive broker, or associate broker may sue in his or her own capacity for the recovery of fees, commissions, or compensation for services as a salesperson, executive broker, or associate broker unless the action is against the principal broker with whom he or she is licensed or was licensed at the time the acts were performed.

(a)  In every real estate transaction involving a licensee, the licensee shall clearly disclose to all parties or to their agents which party he or she is representing. A licensee may represent more than one party to a real estate transaction pursuant to and subject to regulations and rules of the Arkansas Real Estate Commission.
(b)  The timing, method, and other requirements of such disclosure shall be established by the commission, and the commission shall also determine the consequences of failure to make disclosure in accordance with such requirements.

SECTION.

17-42-201.  Creation - Members.
17-42-202.  Organization - Employees.
17-42-203.  Powers and duties.
17-42-204.  Disposition of funds - Fund created.
17-42-205.  Subpoenas and subpoenas duces tecum.

17-42-201.  Creation - Members.                                                 Back    TOP OF PAGE

(a)  The Arkansas Real Estate Commission shall consist of five (5) members, appointed by the Governor for terms of three (3) years, whose terms shall begin on January 1 and end on December 31 of the third year or when their respective successors are appointed and qualified.
(1)(A)  Three (3) members shall have been licensed real estate brokers or licensed real estate salespersons for not less than five (5) years prior to their nominations.
(B)  The Governor shall appoint members to fill vacancies from a list of four (4) nominees submitted by the Arkansas Realtors Association.
(2)(A)  Two (2) members shall not be actively engaged in or  retired from the business of real estate.
(B)  One (1) shall represent consumers, and one (1) shall be  sixty (60) years of age or older and shall represent the elderly.
(C)  Both shall be appointed from the state at large, subject  to confirmation by the Senate, but shall not be required to be appointed from a list submitted by the Arkansas Realtors Association.
(D)  The two (2) positions may not be held by the same person.
(E)  Both shall be full voting members but shall not participate in the grading of examinations.
(b)  Each commissioner may receive expense reimbursement and stipends in accordance with 25-16-901 et seq.

(a)(1)  Immediately upon the qualification of the member appointed in each year, the commission shall meet and organize by selecting from its members a chairman and vice chairman.
(2)  A simple majority shall constitute a quorum.
(3)  The commission shall meet as often as necessary or desirable in order to conduct its business.
(b)(1)  The commission shall employ an executive director and such staff as may be necessary to carry out the provisions of this chapter and to put into effect the rules and regulations the commission may promulgate.
(2)  The executive director shall have such duties, authority, and responsibility as the commission may designate, or as necessarily implied herein.
(3)  The commission shall fix the salaries of employees.

(a)  The commission may do all things necessary and convenient for carrying into effect the provisions of this chapter and may from time to time promulgate necessary or desirable rules and regulations.
(b)  The commission shall have power to administer oaths.
(c)  The commission shall adopt a seal with such design as it may prescribe engraved thereon.
(d)  Copies of all records and papers in the office of the commission, certified and authenticated by the commission, shall be received in evidence in all courts equally and with like effect as the originals.
(e)  The commission shall annually publish a list of the names and addresses of all active licensees licensed by it under the provisions of this chapter, and of all persons whose licenses have been suspended or revoked during that period, together with other information relative to the enforcement of the provisions of this chapter as it may deem of interest to the public.
(f)  The commission may conduct or assist in conducting real estate institutes and seminars and incur and pay the reasonable and necessary expenses in connection therewith, which institutes or seminars shall be open to all licensees.
(g)  The commission is authorized to make reasonable charges for materials provided by the commission and for services performed in connection with providing materials.

(a)  Except as otherwise provided herein, all fees, charges, fines, and penalties collected by the commission shall be deposited in a fund to be known as the "Arkansas Real Estate Commission Fund."
(b)  The commission is empowered to expend funds appropriated from the Arkansas Real Estate Commission Fund for the requirements, purposes, and expenses of the commission under the provisions of this chapter, upon vouchers signed by the executive director or deputy executive director of the commission and countersigned by the chairman or vice chairman thereof.

(a)  The Arkansas Real Estate Commission shall have the power to issue subpoenas and subpoenas duces tecum in connection with both its investigations and hearings.
(b)  A subpoena duces tecum may require any book, writing, document, or other paper or thing which is germane to an investigation or hearing conducted by the commission to be transmitted to the commission.
(c)(1)  Service of a subpoena shall be as provided by law for the service of subpoenas in civil cases in the circuit courts of this state, and the fees and mileage of officers serving the subpoenas and of witnesses appearing in answer to the subpoenas shall be the same as provided by law for proceedings in civil cases in the circuit courts of this state.
(2)(A)  The commission shall issue a subpoena or subpoena duces tecum upon the request of any party to a hearing before the commission.
(B)  The fees and mileage of the officers serving the subpoena  and of the witness shall be paid by the party at whose request a witness is subpoenaed.
(d)(1)  In the event a person shall have been served with a subpoena or subpoena duces tecum as herein provided and fails to comply therewith, the commission may apply to the circuit court of the county in which the commission is conducting its investigation or hearing for an order causing the arrest of the person and directing that the person be brought before the court.
(2)  The court shall have the power to punish the disobedient person for contempt as provided by law in the trial of civil cases in the circuit courts of this state.

SECTION.

17-42-301.  License required - Violations.
17-42-302.  Issuance or denial of license.
17-42-303.  Educational requirements.
17-42-304.  Fees.
17-42-305.  Nonresident license requirements.
17-42-306.  Application procedure.
17-42-307.  Expiration and renewal.
17-42-308.  Inactive license.
17-42-309.  Place of business.
17-42-310.  Change of name or address - Lost license or card.
17-42-311.  Violations.
17-42-312.  Investigation of complaint - Penalties.
17-42-313.  Dismissal of complaint - Appeal.
17-42-314.  Hearings.

   (a)  No person shall practice or represent himself or herself as a real estate broker or salesperson without first applying for and receiving a license to practice under this chapter.
   (b)  Any person who directly or indirectly for another with the intention, or on the promise of receiving any valuable consideration, offers, attempts, or agrees to perform any single act described in
§17-42-103(12), whether as part of a transaction or as an entire transaction, shall be deemed a broker or salesperson within the meaning of this chapter.
   (c)  The commission of a single act by a person required to be licensed under this chapter and not so licensed shall constitute a violation of this chapter.
   (d)    It shall be unlawful for any person, directly or indirectly, to act as a real estate broker or salesperson without first obtaining a license and otherwise complying with the provisions of this chapter.
    (e)    Notwithstanding the provisions of this section, a person or other legal entity not licensed by the commission may own a real estate firm, provided the employees or agents employed by or associated with the firm who perform real estate activities identified under §17-42-103(12) hold an active license under this chapter. The firm may enter into contracts or otherwise perform activities identified under §17-42-103(12) only through a principal broker and any licensee employed by or associated with the principal broker that holds an active license issued by the commission at the time of performing the contract or activities.
    (f)     The commission may provide for the continuing temporary operation of a real estate firm having all rights under §17-42-107(a) upon the death, resignation, termination, or incapacity of the principal broker, or the closing of a real estate firm, under the direction of a person approved by the commission, subject to time limitations and other conditions imposed by the commission.

(a)  The commission shall issue a license to any applicant who meets the following requirements:
(1)  Attainment of the age of majority;
(2)  Successful completion of educational requirements prescribed by this chapter;
(3)  Successful completion of experience requirements prescribed by this chapter;
(4)  Successful completion of an examination administered or approved by the commission;
(5)  Demonstrates no record of unprofessional conduct; and
(6)  Evidence of good reputation for honesty, trustworthiness, and integrity sufficient to safeguard the interests of the public.
(b)  The commission shall determine what constitutes adequate proof of meeting the above requirements, and shall deny a license to any applicant who fails to meet such requirements or who fails to pay the appropriate fees.

   (a)  The commission shall establish educational requirements for licensure, including the standards and procedures for approval of educational programs, subject to the following conditions:
   (1)  The maximum number of educational hours to be required of an applicant for a broker's license shall not exceed one hundred twenty (120) hours within the thirty-six (36) months immediately preceding the date of application; and
   (2)  The maximum number of hours required of an applicant for a salesperson's license shall not exceed ninety (90) hours, at least thirty (30) hours of which shall be in the basic principles of real estate.
   (b)  The commission shall establish the experience requirement for licensure for an applicant for a broker's license subject to the condition of serving an active, bona fide apprenticeship by holding a valid real estate salesperson’s license issued by the Arkansas Real Estate Commission, or by holding a valid real estate salesperson's license or broker's license issued by the appropriate licensing agency of another state, for a period of not less than twenty-four (24) months within the previous forty-eight (48) month period immediately preceding the date of application; provided, however, that the commission may waive such experience requirement for a real estate broker applicant who has held an active real estate broker’s license for a period of not less than eighteen (18) months.
   (c)(1)  The commission shall establish a post-licensure education requirement for individuals in their first year of licensure as a salesperson or broker.
       (2)  The commission shall not require more than thirty (30) classroom hours of post-licensure educational hours.

17-42-304.  Fees.                                                                                 Back    TOP OF PAGE

   The commission shall have authority to establish, charge, and collect the following fees:
   (1)  An application fee not to exceed fifty dollars ($50.00);
   (2)  An original broker's license fee not to exceed eighty dollars ($80.00);
   (3)  A broker's license annual renewal fee not to exceed eighty dollars ($80.00);
   (4)  An original salesperson's license fee not to exceed sixty dollars ($60.00);
   (5)  A salesperson's license annual renewal fee not to exceed sixty dollars ($60.00);
   (6)  A broker's expired license fee not to exceed one hundred ten dollars ($110.00) per year or fraction thereof;
   (7)  A salesperson's expired license fee not to exceed eighty dollars ($80.00) per year or fraction thereof;
   (8)  A license reissuance fee not to exceed thirty dollars ($30.00);
   (9)  An initial duplicate license fee not to exceed thirty dollars ($30.00);
   (10)  A duplicate license annual renewal fee not to exceed thirty dollars ($30.00);
   (11)  A transfer fee not to exceed thirty dollars ($30.00);
   (12)(A)  An examination fee not to exceed seventy-five dollars ($75.00).
          (B)  Provided, however, the commission, at its discretion, may direct each applicant to pay the actual costs of the examination fee directly to a testing service engaged by the commission to administer the examination;
   (13)  Pursuant to § 17-42-313, an appeal filing fee not to exceed one hundred dollars ($100.00); and
   (14)  A Real Estate Recovery Fund fee not to exceed twenty-five dollars ($25.00).

(a)  In order to be licensed in Arkansas a nonresident must:
(1) Either:
(A)  Meet the requirements of §17-42-302; or
(B)  Show satisfactory proof of current active licensure in the applicant's resident jurisdiction, which must be a jurisdiction that offers Arkansas licensees opportunities for licensure substantially comparable to those offered to that jurisdiction's licensees by this chapter;
(2)  Pay any required fees;
(3)  Sign a statement that the applicant has read the Arkansas Real Estate License Law, §17-42-101 et seq., and regulations and agrees to abide by its provisions in all real estate activity;
(4)(A)  Affiliate with a resident or nonresident principal broker  licensed by the commission, if a salesperson or associate broker.
(B)  If a nonresident licensee terminates the affiliation with a principal broker licensed by the commission, the license of such nonresident shall automatically be terminated until such nonresident places the license on inactive status or affiliates with another broker licensed by the commission;
(5)(A)  Cause the licensing body of the applicant's resident jurisdiction to furnish to the commission a certification of licensure and copies of the records of any disciplinary actions taken against the applicant's license in that or other jurisdictions.
(B)  Disciplinary action by any other lawful licensing authority may be grounds for denial of license to a nonresident or for suspension or revocation of a license issued to a   nonresident or for other appropriate disciplinary action authorized by this chapter;
(6)(A)  File with the executive director a designation in writing that appoints the executive director to act as the licensee's agent upon whom all judicial and other process or legal notices directed to such licensee may be served.
(B)  Service upon the executive director shall be equivalent to personal service upon the licensee.
(C)  Copies of such appointment, certified by the executive director, shall be deemed sufficient evidence thereof and shall be admitted in evidence with the same force and effect as the   originals thereof might be admitted.
(D)  In such written designation, the licensee shall agree that any lawful process against the licensee which is served upon the  executive director shall be of the same legal force and validity as if served upon the licensee and that the authority shall continue in force so long as any liability remains outstanding in this jurisdiction.
(E)  The executive director shall mail a copy of any such process or notice by certified mail to the last known business  address of the licensee; and
(7)(A)  Agree in writing to cooperate with any investigation initiated by the commission by promptly supplying any documents  the commission may request and by personally appearing at the commission's offices or such other location in this state as the commission may request.
(B)  If notice is sent by certified mail to the last known business address of a nonresident licensee directing the licensee to produce documents or to appear for an interview, and the licensee fails to comply with that request, the commission may impose on the nonresident licensee any disciplinary sanction permitted by this chapter.
(b)  The commission in its discretion may enter into written agreements with similar licensing authorities of other jurisdictions as may be necessitated by the laws of those jurisdictions to assure for Arkansas licensees nonresident licensure opportunities comparable to those afforded to nonresidents by this chapter.
(c)  The commission may deny licensure under subdivision (a)(1)(B) of this section to an applicant whose resident licensure is in a jurisdiction which the commission deems not to have educational or experience requirements at least equal to those of Arkansas.

(a)(1)  Applications for licensure must be submitted on forms provided by the commission.
(2)  The commission may require any information and documentation needed to determine if the applicant meets the criteria for licensure as provided in this chapter.
(3)  Each applicant shall pay such application fee and examination fee as the commission may require pursuant to §17-42-304.
(b)(1)  An applicant who successfully completes the examination shall, within ninety (90) days from the date of the examination, pay such license fee and Real Estate Recovery Fund fee as the commission may require pursuant to §17-42-304.
(2)  The applicant's failure to pay the license fee and Real Estate Recovery Fund fee within that ninety-day period shall invalidate the examination results, and the applicant shall be required to make new application and retake the examination as an original applicant.

   (a)  Every license, both active and inactive, shall expire on December 31 of each year.
   (b)(1)  For each active licensee, the commission shall issue a new license for each ensuing year, in the absence of any reason or condition which might warrant the refusal of a license, upon receipt of a written request no later than September 30 of each year upon forms provided by the commission together with the annual fee therefor.
   (2)(A)  For any broker or salesperson who does not wish to engage in the real estate business, the license shall be renewed on inactive status, in the absence of any reason or condition which might warrant the refusal of a license, upon receipt of the written request of the applicant no later than September 30 of each year upon forms provided by the commission together with the annual fee therefor.
        (B)  However, the commission may limit the number of renewal periods in which a license may be renewed on inactive status.
        (C)  The renewal fee for inactive status shall be the same as for renewal of an active license.
   (3)  An application for renewal filed after September 30 of any year shall be treated as an application to renew an expired license.
   (c)  If any person to whom a valid license may have been issued permits the license to expire for a period not in excess of that established by the commission, the commission shall issue to the person a current license without requiring the person to submit to any examination if the person furnishes such information as the commission requires, including proof of completion of appropriate continuing education requirements, and pays such fee as the commission requires.
   (d)(1)  Beginning January 1, 2002, new salesperson and broker licensees shall complete post-licensure education in accordance with §17-42-303(c).
   (2)  If the licensee fails to complete the post-licensure education requirements within twelve (12) months after the date the license was issued, the commission shall place the license on inactive status until the commission receives documentation that the licensee has completed the post-licensure education requirements.

(a)(1)  A licensee may place his or her license on inactive status.
(2)  The holder of an inactive license shall not practice as a real estate broker or salesperson in this state without first activating the license.
(b)  An inactive license which is not renewed shall be treated as an expired license pursuant to
§17-42-307.
(c)  Inactive licenses may be activated upon compliance with requirements established by the commission, including payment of appropriate fees.
(d)  The provisions of this chapter relating to disciplinary action against a licensee shall be applicable to an inactive or expired license.

(a)  Every principal broker shall maintain a place of business and shall display a permanently attached sign bearing the name under which the broker conducts his or her real estate business and the words "real estate," "realty," or other words approved by the commission which clearly indicate to the public that the broker is engaged in the real estate business.
(b)(1)  If a principal broker maintains a branch office, a duplicate license shall be issued upon payment by the principal broker of such initial fee and, thereafter, such renewal fee as the commission may require pursuant to §17-42-304.
(2)  Provided, however, a duplicate license shall not be issued for a branch office at which an executive broker or associate brokers or salespersons are assigned unless such branch office has its own principal broker.

(a)(1)  When a licensee changes his or her name, place of business, or address shown on the license, or loses a license or pocket card, he or she shall promptly notify the commission of such change or loss.
(2)  Upon receipt of such notice and payment of the relevant fee, the commission shall reissue the license.
(b)  It is the responsibility of each licensee to keep the commission notified of his or her mailing address, both home and business, at all times.
(c)  The licenses of the principal broker and all licensees employed by or associated with him or her shall be retained by the principal broker and conspicuously displayed in his or her place of business.
(d)(1)  Upon the termination of a licensee's employment by or association with a principal broker, the licensee shall promptly deliver his or her pocket card to the principal broker, and the principal broker shall promptly notify the commission of such termination and return to the commission the license and pocket card of the terminated licensee, which shall automatically inactivate the license.
(2)  If the pocket card is unavailable, the principal broker shall promptly so notify the commission in writing.
(e)  A license inactivated under this section may be transferred to another principal broker upon application of the licensee, payment of the relevant fee, and submission of a statement that he or she is not taking any listings, management contracts, appraisals, lease agreements, or copies of any such documents, or any other pertinent information belonging to the licensee's previous principal broker.

(a)  The following acts, conduct, or practices are prohibited, and any licensee found guilty shall be subject to disciplinary action as provided in § 17-42-312:
(1)  Obtaining a license by means of fraud, misrepresentation, or concealment;
(2)  Violating any of the provisions of this chapter or any rules or regulations adopted pursuant thereto or any order issued thereunder;
(3)  Being convicted of any crime involving moral turpitude, fraud, dishonesty, untruthfulness, or untrustworthiness; provided, that for the purposes of this section being convicted shall include all instances in which a plea of guilty or nolo contendere is the basis for the conviction, and all proceedings in which the sentence has been deferred or suspended, and a certified copy of the final judgment of any court of competent jurisdiction in such matters shall be conclusive evidence in any hearing under this chapter;
(4)  Making any substantial misrepresentation;
(5)  Making, printing, publishing, distributing, or causing, authorizing, or knowingly permitting the making, printing, publication, or distribution of false statements, descriptions, or promises of such character as to reasonably induce, persuade, or influence any person to act thereon;
(6)  Failing, within a reasonable time, to account for or to remit any moneys coming into his or her possession which belong to others;
(7) Committing any act involving moral turpitude, fraud, dishonesty, untruthfulness, or untrustworthiness;
(8)  Acting for more than one (1) party in a transaction without the knowledge of all parties for whom he or she acts, or accepting a commission or valuable consideration for the performance of any of the acts specified in this chapter from any person except the licensed principal broker under whom he or she is licensed;
(9)  Acting as a broker or salesperson while not licensed with a principal broker, representing or attempting to represent a broker other than the principal broker with whom he or she is affiliated without the express knowledge and consent of such principal broker, or representing himself or herself as a salesperson or having a contractual relationship similar to that of a salesperson with anyone other than a licensed principal broker;
(10)  Advertising in a false, misleading, or deceptive manner;
(11)  Being unworthy or incompetent to act as a real estate broker or salesperson in such manner as to safeguard the interests of the public;
(12)  Paying a commission or valuable consideration to any person for acts or services performed in violation of this chapter, including paying a commission or other valuable consideration to an unlicensed person for participation in a real estate auction; and
(13)  Any other conduct, whether of the same or a different character from that hereinbefore specified, which constitutes improper, fraudulent, or dishonest dealing.
(b)  Any license obtained through mistake or inadvertence shall be subject to revocation.
(c)  A licensee whose license is revoked pursuant to this section shall be eligible to apply for a new license after the expiration of two (2) years from the date of revocation.

(a)(1)  The commission may, on its own motion, and shall, upon the verified complaint in writing of any person, provided the complaint and any evidence, documentary or otherwise, presented in connection therewith shall make out a prima facie case, investigate the actions of any person engaged in the business or acting in the capacity of a real estate broker or real estate salesperson regardless of whether the transaction was for his or her own account or in his or her capacity as a broker or salesperson.
(2)  If the complaint fails to state a prima facie case or if, after investigation, the executive director determines there is insufficient proof of a violation of this chapter, the executive director shall dismiss the complaint.
(3)  If, however, the executive director determines there is sufficient proof of a violation of this chapter, the licensee shall be notified of the charges against him or her and ordered to appear for a hearing.
(4)  If the licensee is found to have violated this chapter, the commission may impose any one (1) or more of the following sanctions:
(A)  Suspension, revocation, or denial of his or her license or the renewal thereof;
(B)  A penalty not to exceed one thousand dollars ($1,000) for each violation;
(C)  Require completion of appropriate educational programs or courses;
(D)  Require successful completion of an appropriate licensing examination;
(E)  Place conditions or restrictions upon the licensee's license or practice; or
(F)  Such other requirements or penalties as may be appropriate to the circumstances of the case, and which would achieve the desired disciplinary purposes, but which would not impair the public welfare and morals.
(b)  The commission is authorized to file suit in either the Circuit Court of Pulaski County or the circuit court of any county in which the defendant resides or does business to collect any penalty assessed pursuant to this chapter if such penalty is not paid within the time prescribed by the commission.
(c)  Where deemed appropriate, the commission may suspend the imposition of any sanctions imposed upon appropriate terms and conditions.

(a)  Any person whose complaint against a licensed real estate broker or salesperson is dismissed by the executive director without a hearing may appeal such dismissal to the commission subject to and in accordance with the following provisions:
(1)  The request for appeal must be in writing and received in the office of the commission not later than sixty (60) days following the date of dismissal by the executive director;
(2)  The request for appeal must be accompanied by such filing fee as the commission may require pursuant to §17-42-304; and
(3)(A)(i)  The appellant must also pay the cost of preparing the  record for the commission's review, which cost shall be determined by the commission.
(ii)  Such costs must be paid by the appellant within thirty (30) days after notification of the amount. Otherwise, the appeal will be dismissed.
(B)  Provided, however, that, if the commission's review results in a hearing being ordered on the complaint, both the filing fee and the cost of preparing the record shall be refunded   to the appellant.
(C)  Any person who is indigent and unable to pay either the filing fee or the cost of the record, or both, may file a pauper's oath in such form as required by the commission, and, if the commission determines that the appellant is indeed indigent, the filing fee or cost of the record, or both, shall be waived.
(b)(1)  All appeals duly perfected pursuant to subsection (a) of this section shall be presented to and decided by the commission on the written record.
(2)  Such decision may be to affirm the executive director's dismissal, to order additional investigation, or to order a hearing on the complaint.

(a)  Proceedings under §17-42-312 and hearings on denials of licenses shall be conducted pursuant to the Arkansas Administrative Procedure Act, §25-15-201 et seq.
(b)  Except in cases where a licensee has obtained a license by false or fraudulent representation, the commission shall not investigate the actions of, or conduct any disciplinary hearing regarding, any real estate broker or salesperson unless the complaint is filed or the investigation initiated within three (3) years from the date of the actions complained of or concerning which an investigation is initiated.

17-42-315. Criminal background check. 

   (a)(1) Beginning January 1, 2006, the Arkansas Real Estate Commission may require each original applicant for a license issued by the commission to apply to the Identification Bureau of the Department of Arkansas State Police for a state and federal criminal background check to be conducted by the Identification Bureau of the Department of Arkansas State Police and the Federal Bureau of Investigation.
   (2)(A) An applicant may sit for the examination required by § 17-42-302(a)(4) while awaiting the results of a background check prescribed by this section.
        (B) No license shall be issued to an applicant until the commission receives and approves the state and federal criminal background check.
   (b)  The check shall conform to applicable federal standards and shall include the taking of fingerprints.
   (c)  The applicant shall sign a release of information to the Commission and shall be responsible for the payment of any fee associated with the criminal background check.
   (d)  Upon completion of the criminal background check, the Identification Bureau of the Department of Arkansas State Police shall forward to the Commission all releasable information obtained concerning the applicant.
   (e)  At the conclusion of any background check required by this section, the Identification Bureau of the Department of Arkansas State Police shall be allowed to retain the fingerprint card of the applicant until notified by the Commission that the person is no longer licensed.
   (f)  Except as provided in subsection (g) of this section, a person shall not receive or hold a license issued by the commission if the person has been convicted of or pleaded guilty or nolo contendere to a felony or a crime involving moral turpitude, fraud, dishonesty, untruthfulness, or untrustworthiness.
   (g)(1)    The provisions of subsection (f) of this section may be waived by the Commission upon the request of:
         (A) An affected applicant for licensure; or
         (B) The person holding a license subject to sanctions.
   (2)  Circumstances for which a waiver may be granted shall include, but not be limited to, the following:
         (A) The age at which the crime was committed;
         (B) The circumstances surrounding the crime;
         (C) The length of time since the crime;
         (D) Subsequent work history;
         (E) Employment references;
         (F)  Character references; and
         (G) Other evidence demonstrating that the applicant does not pose a threat to the public.
   (h)(1)    Any information received by the Commission from the Identification Bureau of the Department of Arkansas State Police or the Federal Bureau of Investigation pursuant to this section shall not be available for examination except by the affected applicant for licensure, or his or her authorized representative, or the person whose license is subject to sanctions, or his or her authorized representative.
         (2)  No record, file, or document shall be removed from the custody of the Department of Arkansas State Police.
   (i)   Any information made available to the affected applicant for licensure of the person whose license is subject to sanctions shall be information pertaining to that person only.
   (j)   Rights of privilege and confidentiality established in this section shall not extend to any document created for purposes other than the background check.
   (k)  The Commission may adopt rules and regulations to fully implement the provisions of this section.

SECTION.

17-42-401.  Applicability.
17-42-402.  Construction.
17-42-403.  Creation - Administration.
17-42-404.  Fees - Use of fund.
17-42-405.  Additional fees.
17-42-406.  Disciplinary hearing - Procedure.
17-42-407.  Jurisdiction.
17-42-408.  Appeal.
17-42-409.  Subrogation - Suspension of license.

The provisions of this subchapter shall apply only to:
(1)  Licensees who were licensed at the time of the occurrence of the acts or violations complained of; and
(2) Acts or violations which occur after December 31, 1979.

Nothing in this subchapter shall be construed to limit or restrict in any manner other civil or criminal remedies which may be available to any person.

There is created and established the "Real Estate Recovery Fund," which shall be maintained and administered by the Arkansas Real Estate Commission as provided in this subchapter.

(a)  The commission shall set the fees at such amount as it deems necessary to initially establish the fund and to reestablish the fund at the beginning of each annual renewal period. However, the fees shall not exceed the limits set forth in § 17-42-405.
(b)  The assets of the fund may be invested and reinvested as the commission may determine, with the advice of the State Board of Finance.
(c)  Any amounts in the fund may be used by the commission for the following additional purposes:
(1)  To fund educational seminars and other forms of educational projects for the use and benefit generally of licensees;
(2)  To fund real estate chairs or courses at various state institutions of higher learning for the purpose of making such courses available to licensees and the general public;
(3)  To fund research projects in the field of real estate; and
(4)  To fund any and all other educational and research projects of a similar nature having to do with the advancement of the real estate field in Arkansas.

(a)  In addition to the other fees provided for in this chapter and commission regulations, each licensed real estate broker and salesperson shall pay to the commission for the benefit of the fund a fee as the commission may require, not to exceed the lesser of:
(1)  Twenty-five dollars ($25.00) per annual renewal; or
(2)  An amount sufficient to restore the fund balance to two hundred fifty thousand dollars ($250,000).
(b)  Likewise, each person who becomes a licensee for the first time shall at that time pay to the commission for the benefit of the fund such fee as the commission may require, not to exceed twenty-five dollars ($25.00).
(c)  No fees collected under the provisions of this subchapter may be expended from the fund except for the purposes set forth in this subchapter.

(a)(1)  In any disciplinary hearing before the commission which involves any licensee who has allegedly violated any provision of this chapter or commission regulations, the commission shall first determine whether a violation has occurred.
(2)  If so, the commission shall then determine the amount of damages, if any, suffered by the aggrieved party or parties. However, damages shall be limited to actual damages in accordance with §17-42-407.
(3)  The commission shall then direct the licensee to pay that amount to the aggrieved party or parties.
(4)  If that amount has not been paid within thirty (30) days following entry of the commission's final order in the matter and the order has not been appealed to the circuit court, then the commission shall, upon request, pay from the fund to the aggrieved party or parties the amount specified. However, the commission shall not:
(A)  Pay in excess of fifteen thousand dollars ($15,000) for any one (1) violation or continuing series of violations, regardless of the number of licensees who participated in such violation or continuing series of violations; or
(B)  Pay an amount in excess of the fund balance.
(b)  The question of whether or not certain violations constitute a continuing series of violations shall be a matter solely within the discretion and judgment of the commission.
(c)  Nothing within this subchapter shall obligate the fund for any amount in excess of a total of fifty thousand dollars ($50,000) with respect to:
(1)  The acts of any one (1) licensee; or
(2)  Any group of related claims.
(d)  Whether or not a claim is one of a group of related claims shall be a matter solely within the discretion and judgment of the commission.
(e)  When unsatisfied or pending claims are such that they exceed the limits payable under subsection (c) of this section, the commission shall be the sole determinant of how the available funds shall be allocated among such claims.

(a)  The commission's jurisdiction and authority to award damages to an aggrieved party pursuant to
§17-42-406 is limited to actual, compensatory damages. The commission shall not award punitive or exemplary damages, nor shall it award interest on damages.
(b)  Likewise, the appellate jurisdiction of the circuit court is limited to the awarding of actual, compensatory damages.
(c)  The circuit court shall have no authority or jurisdiction to assess punitive or exemplary damages under this subchapter.
(d)  The circuit court's jurisdiction over the fund shall be limited to appeals from the commission's orders.
(e)  The circuit court shall have no jurisdiction or authority to order payments from the fund in any amount in excess of either:
(1)  The amount determined by the commission; or
(2)  The limits set forth in § 17-42-406.

(a)  An appeal may be taken to the circuit court from a final order of the commission in accordance with the Arkansas Administrative Procedure Act, § 25-15-201 et seq.
(b)  An appeal shall automatically stay that portion of the commission's order which directs the payment of damages, and neither the licensee nor the commission shall be obligated to pay the damages to the aggrieved party or parties until such time as the appeal is finally decided, whether in the circuit court or in the Arkansas Supreme Court.

Upon the payment by the commission of any amount of money under the provisions of § 17-42-406:
(1)  The recipients of the payment, to the extent of the payment, shall assign to the commission all rights and claims that they may have against the licensee involved;
(2)  The commission shall be subrogated to all of the rights of the recipients of the payment, to the extent of the payment; and
(3)  In addition to any other disciplinary action taken against the licensee on the merits of the hearing, his or her license shall be immediately suspended until he or she has completely reimbursed the commission for the payment, plus interest at a rate to be determined by the commission, which rate shall not exceed ten percent (10%) per annum.

SECTION.

17-42-501.  Renewal or reactivation requirements.
17-42-502.  Curriculum.
17-42-503.  Nonqualifying courses or events.
17-42-504.  Qualifying courses.
17-42-505.  Instructor credentials.
17-42-506.  Credit - Certificate of attendance.
17-42-507.  Monitoring courses.

(a)  As a condition precedent to renewal or activation of licenses, licensees shall meet the following requirements:
(1)(A)  Licensees on inactive status are not required to comply with this subchapter during their inactive status.
(B)(i)  Prior to activation of a license on inactive status, the licensee shall satisfactorily complete six (6) classroom hours or equivalent continuing education units or equivalent correspondence work of continuing education.
(ii)  However, that will satisfy the requirements only for that particular license year and not for the following license year;
(2)(A)  Persons licensed as real estate brokers or salespersons shall successfully complete six (6) classroom hours or equivalent continuing education units or equivalent correspondence work of continuing education annually.
(B)  Those persons shall be deemed to have successfully completed the continuing education requirements for the licensing year following the year in which first licensed in Arkansas;
(3)  Provided the course or courses consist of no less than six (6) classroom hours or equivalent continuing education units of real estate-related subjects and otherwise comply with the minimum requirements of this subchapter, and further provided that evidence of such compliance satisfactory to the commission is submitted in form, manner, and content prescribed by the commission, a nonresident licensee may meet the Arkansas continuing education requirements by taking courses which meet the continuing education requirements of his or her resident state for the licensing year in question.
(b)  The commission may waive all or part of the requirements of subsection (a) of this section for any licensee who submits satisfactory evidence of inability to meet the continuing education requirements due to health reasons or other hardship or extenuating circumstances beyond the licensee's control.
(c)  Licenses for persons who apply for renewal of their licenses and who do not provide to the commission evidence of meeting the continuing education requirements, but who have otherwise met all requirements for license renewal, shall be placed on inactive status until the evidence is provided to the commission.

(a)(1)  The commission may establish the continuing education curriculum by identifying subject matter topics.
(2)  The commission may identify specific topics of not more than one (1) hour to be included in continuing education courses.
(3)  The commission shall not require licensees to complete specific courses within the subject matter topics.
(4)  Changes in the curriculum shall be applicable beginning with the license renewal period subsequent to the curriculum change.
(b)  The board shall approve continuing education courses and may approve only those continuing education courses which meet the criteria prescribed by the commission. In establishing such criteria, the commission shall give due consideration to the advice and recommendations of the board.
(c)  The board shall determine the classroom hour equivalency of correspondence courses.

(a)  The following do not qualify as continuing education:
(1)  Courses of instruction designed to prepare a student for passing the real estate broker or salesperson examinations, except as provided in §17-42-501(a);
(2)  Offerings in mechanical skills and office and business skills, including, but not limited to, typing, speed-reading, memory improvements, language, report writing, personal motivation, salesmanship, and sales psychology;
(3)  Sales promotions or other meetings held in conjunction with the general business of the licensee; and
(4)  Time devoted to breakfasts, luncheons, and dinners.
(b)  The same course may not be used to meet the continuing education requirement twice during the same license year.

The following courses and their instructors are not required to obtain the approval of the board in order to qualify as continuing education courses in this subchapter:
(1)  Courses in real estate-related subjects offered by the National Association of Realtors, the National Association of Real Estate Brokers, or their societies, institutes, or councils; and
(2)  Courses in real estate-related subjects offered by the commission.
(3) Courses of at least three (3) semester hours or equivalent in real estate subjects acceptable to the commission offered by colleges or universities.

(a)  Except as provided in this subchapter, instructors in continuing education courses shall file credentials with the board showing the necessary specialized preparation, training, and experience to ensure competent and qualified instruction.
(b)  The board will prescribe instructor qualification credentials and education requirements based upon advice and recommendation of the commission.

17-42-506.   Credit - Certificate of attendance.                         Back    TOP OF PAGE

(a)  Credit shall be earned on the basis of attendance.
(b)(1)  A certificate of attendance which states the name of the student, the name of the school or sponsor of the course, the date the course was completed, the number of classroom hours of instruction covered by the individual course, and such other information as the commission may require shall be presented to each attendee upon completion of the course.
(2)  No certificate of attendance shall be issued to a licensee who is absent for more than ten percent (10%) of the classroom hours.
(3)  Either a copy of the certificate or other proof of satisfactory completion of the course acceptable to the commission shall be furnished to the commission by the licensee.
(4)  It is the licensee's responsibility to establish his or her successful completion of a continuing education course.

The commission or its designee is authorized to attend and monitor any courses of instruction offered or to be offered as meeting the requirements of this chapter.

SECTION.

17-42-601.  Establishment of program.
17-42-602.  Notice.
17-42-603.  Disposition of funds.

17-42-601.  Establishment of program.                                         Back    TOP OF PAGE

(a)  The commission is hereby authorized and empowered, subject to the following restrictions and limitations, to establish a program authorizing and permitting the collection of interest on real estate brokers' trust accounts and the disbursement of such interest by the depository institutions involved to an Arkansas nonprofit corporation for use for such tax-exempt purposes as are hereinafter set forth.
(b) Participation in the program shall be completely voluntary with each broker rather than mandatory.

(a)  All real estate brokers participating in this program shall post a notice at least four inches by seven inches (4" x 7") stating that they participate in the interest on real estate brokers' trust accounts program.
(b)  Said notice shall be displayed prominently and shall contain information concerning the purposes for which the interest accumulating on the account shall be used, and shall state: "If funds belonging to you are deposited in this firm's trust account, any interest earned therefrom will be forwarded by the depository bank to a nonprofit organization which will dispense the funds to provide for economic development, research, education, and such other public service purposes as may be determined by the recipient corporation selected by the Arkansas Real Estate Commission."

(a)(1)  The recipient of the funds generated by such program shall be such Arkansas nonprofit corporation as the commission shall designate.
(2)  Such corporation shall be governed by a board of directors consisting of not fewer than five (5) nor more than fifteen (15) members.
(3)  At least sixty percent (60%) of the total number of directors shall be appointed by the commission and the remainder by the Arkansas Realtors Association.
(4)  The corporation shall be tax exempt as defined by § 501(c)(3) of the Internal Revenue Code.
(b)  The funds generated by the program shall be used for economic development, research, education, and such other public service purposes as may be determined by the recipient corporation specified in this section.

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