076.00.96 Ark. Code R. 001

Current through Register Vol. 49, No. 10, October, 2024

Rule 076.00.96-001 - 6.2 Inactive Status Renewal; 7.5 Termination/Transfer; 8.5 Fidelity/ Honest Dealing; 10.1 Dealing Ind. of Principal Broker; 10.5 Advertising; 10.10 Agreements to be Written; 10.16 Crim. Convict. and Disciplinary Actions; 11.3 Approved Courses

6.2Inactive Status Renewal.

(a) Any licensee who does not wish to engage in the real estate business at the time of renewal may apply for inactive status.

(1) A licensee who renews a license on inactive status for the calendar year 1994 or later may renew on inactive status for three (3) consecutive calendar years. If such licensee does not activate the license before the end of the third (3rd) calendar year the licensee shall be regarded as an original applicant.

(2) A licensee whose license was renewed on inactive status for the calendar year 1993 or before may renew on inactive status for five (5) consecutive calendar years. If such licensee does not activate the license before the end of the fifth (5th) calendar year, the licensee shall be regarded as an original applicant.

(b) The limitations of Regulation 6.2(a)(1) and (2) shall be increased by the amount of time during inactive status that the licensee:

(1) Holds an active real estate license in another state; or

(2) Is employed by the federal, state, county or local government in a capacity in which the holding of an active real estate license would not be in the public interest; or

(3) Is employed as a full-time instructor at either an accredited postsecondary school or a school or organization licensed by the State Board of Private Career Education whose course of instruction is deemed by the commission to satisfy the educational requirements of the Arkansas Real Estate License Law.

(c) It shall be the responsibility of any person who renews a license on inactive status to promptly notify the commission in writing of any change of name or address.

7.5Termination or Transfer.

(a) Within seven (7) days after the employment or association of a licensee with a principal broker ends, such principal broker shall notify the commission of such termination and return to the commission the license and pocket card of the terminated licensee. Such notification shall automatically inactivate the license. Immediately upon termination, the terminated licensee shall deliver to the principal broker his/her pocket card.

(b) The license of a licensee terminated under Regulation 7.5(a) may be transferred to another firm, after the license and pocket card have been returned to the commission, by the licensee's filing with the commission a transfer application signed by the new principal broker. Such transfer application must be accompanied by (1) a statement that the licensee is not taking any listings, management contracts, appraisals, lease agreements, or copies of any such documents, or any other pertinent information belonging to the former principal broker or firm, and (2) a transfer fee. At the time the transfer application and the accompanying items are filed, a temporary interim license may be issued.

(c) If an actively licensed broker or salesperson does not wish to continue to engage in the real estate business, such broker or salesperson shall return any license and pocket card in his/her possession to his/her principal broker who shall then return these items to the commission for inactive status. A broker who closes his/her firm shall remove all signs reflecting the company name and shall return all licenses and pocket cards issued to the principal broker to the commission office for inactive status. If a real estate firm shall close its office, any real estate salesperson licensed with such principal broker shall be entitled to transfer to a new principal broker upon compliance with the appropriate provisions of the Arkansas Real Estate License Law and commission regulations.

(d) If the principal broker is deceased, unavailable, or for any reason unwilling or unable to act, then the licensee has the responsibility to notify the commission in writing of the termination or transfer and of returning the pocket card and license.

8.5Fidelity and Honest Dealing.

(a) In accepting employment as an agents a licensee pledges to protect and promote the interests of the client or clients. This obligation of absolute fidelity to the interest of the client or clients is primary, but does not relieve a licensee from the equally binding obligation of dealing honestly with all parties to the transaction.

(b) A licensee shall not offer or advertise property without authority and in any offering or advertisement the price quoted must not be other than that agreed upon with the owners as the offering price.

(c) "When acting as agent in the sale or management of property, a licensee shall not accept any commission, rebate, profit, payment, compensation or other valuable consideration from any source in connection with the property without full written disclosure to the party represented by the licensee.

(d) A licensee shall not accept compensation from more than one party without full written disclosure to all parties to the transaction.

10.1Dealing Independently of Principal Broker.

(a) If a principal broker or executive broker learns a salesperson, associate broker or executive broker licensed under such principal broker or executive broker has, without permission of the principal broker or executive broker, engaged in real estate activities independently or through some other broker, it is the duty of the principal broker or executive broker to immediately notify the commission in writing and forward such licensee's license to the commission.

(b) Any salesperson, associate broker or executive broker who engages in real estate activities independently or through some other broker without permission from the principal broker or executive broker shall be presumed to be in violation of A.C.A. § 17-42-311 and subject to appropriate sanctions.

REGULATION 10.5

10.5 Advertising.

(a) A licensee may not advertise any property.-; including the licensee's own property, for sale or rent, or display a real estate sign without including in that advertisement or sign the name of the firm with whom that licensee is licensed.

(b) A principal broker and any persons licensed with said principal broker shall not advertise or otherwise conduct real estate brokerage business under any name other than the name in which the principal broker's license has been issued.

(c) In public advertising a principal broker shall be especially careful to present a true picture and should not permit licensees to use individual names or telephone numbers, unless the licensee's connection with the broker is obvious in the advertisement.

10.10Agreements to be Written.

(a) Except as provided in Regulation 10.10(b), a licensee, for the protection of the public and of all parties with whom the licensee deals, shall see that the exact agreement of the parties regarding real estate is in writing, and that signed copies of such agreements are delivered to all parties involved. (Examples: Offer and acceptance contracts, closing statements, lease agreements, management agreements, financial obligations and commitments, etc.)

(b) It is strongly recommended that listing agreements be in writing.

(c) In compliance with the Arkansas Supreme Court decision in the case of Pope County Bar Association, Inc. vs. Suggs, 624 S.W. 2d 828 (1981), real estate forms used by licensees in the regular course of business shall be approved by a licensed Arkansas attorney prior to use. The licensee shall be responsible for providing evidence of such approval by a licensed Arkansas attorney upon request of the Commission.

10.16Criminal Convictions and Disciplinary Actions.

(a) A licensee who is convicted of or pleads guilty or nolo contendere to any crime other than a traffic violation shall make written report thereof to the commission within thirty (30) days after the conviction or plea. The report shall include the date of the offense and of the conviction or plea, the name and address of the court, the specific crime for which convicted, or to which the plea is entered, the fine, penalty and/or other sanctions imposed, and copies of the charging document and judgment of conviction or other disposition, including probation or suspension of sentence. The report shall also include the licensee's explanation of the circumstances which led to the charge and conviction or plea, along with any other information which the licensee wishes to submit.

(b) A licensee who after the initiation of an investigation, hearing or other administrative action surrenders or who has a professional, vocational or occupational license, permit, certification or registration denied, revoked, suspended or cancelled or who is subjected to any sanctions, including probation, involving such license, permit, certification or registration shall make written report thereof to the commission within thirty (30) days after such action. The report shall include the date of the action, the name and address of the regulatory agency which has taken the action and copies of documents pertaining thereto. The report shall also include the licensee's explanation of the circumstances which led to the action, along with any additional information the licensee wishes to submit.

(c) An applicant for a real estate license who has been convicted of or pleaded guilty or nolo contendere to any crime other than a traffic violation or who after the initiation of an investigation, hearing or other administrative action has surrendered or has had a professional, vocational or occupational license, permit, certification or registration denied, revoked, suspended or cancelled or who has been subjected to any sanctions, including probation, involving such a license, permit, certification or registration shall furnish the written report referred to in Regulation 10.16 (a) and/or (b) to the commission at the time the application is submitted if such action has already occurred, otherwise such report shall be made immediately after the action occurs.

11.3Approved Courses and Instructors.

Only those courses and instructors which are approved by the State Board of Private Career Education or which are exempted from such approval by Section 23(4) of Act 690 of 1993 [A.C.A. § 17-42-504 ] shall be accepted by the commission for continuing education credit.

076.00.96 Ark. Code R. 001

11/20/1996