Arkansas Real Estate License Law and Time-Share Act Vocabulary

Vocabulary definitions covering key statutory terms from the Arkansas Real Estate License Law and the Arkansas Time-Share Act.

Associate broker

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 real estate activities under the supervision of a principal broker or executive broker, having no supervisory authority over any other licensee.

Branch office

A principal broker's office other than his or her principal place of business.

Broker's price opinion

An estimate prepared by a licensee that details the probable selling price of real estate and provides a varying level of detail about the real estate's condition, market, and neighborhood, and information about sales of comparable real estate.

Classroom hour

A period of at least fifty (50) minutes, but not more than sixty (60) minutes, of actual classroom instruction with the instructor present.

Continuing education

Postlicensure education derived from participation in courses in real estate-related subjects that have been approved by the Arkansas Real Estate Commission or that are not required to be approved by the commission.

Continuing education unit

A period of ten (10) contact hours of actual classroom instruction with the instructor present.

Executive broker

An individual who has a broker's license, is employed by or associated with a principal broker as an independent contractor, participates in real estate activities while under the supervision of a principal broker, and may supervise associate brokers and salespersons.

Licensee

An individual who holds any type of license issued by the commission, including a principal broker, an executive broker, an associate broker, and a salesperson.

Principal broker

An individual expecting to act or acting for another for a fee, commission, or other consideration who performs real estate acts such as selling, buying, renting, leasing, listing, auctioning, or collecting rent for real estate.

Real estate

An interest in real property, including without limitation a leasehold, time-share interval, or an interest in real property purchased or sold in connection with the purchase or sale of assets, stock, or ownership interest of a business.

Salesperson

An individual who has a salesperson's license, is employed by or associated with a principal broker as an independent contractor, and participates in real estate activities while under the supervision of a principal broker or executive broker.

Unlicensed real estate activity

Offering or engaging in any practice, act, or operation set forth in § 17-42-103(10) without a valid active Arkansas license issued by the commission.

Systematic residential rental property inspection program

A program that requires all persons who reside outside of the State of Arkansas and are owners of residential rental property located within the corporate limits of a municipality in this state to designate an agent for service of process.

Arkansas Real Estate Commission Fund

The fund into which all fees, charges, fines, and penalties collected by the Arkansas Real Estate Commission are deposited and spent for the expenses of the commission.

Real Estate Recovery Fund

A fund maintained and administered by the Arkansas Real Estate Commission to pay actual compensatory damages to aggrieved parties resulting from licensee violations, subject to statutory limits.

Accredited college or university

A state-supported institution of higher education or a nonpublic, not-for-profit college or university currently incorporated and recognized by the Arkansas Higher Education Coordinating Board operating under applicable state laws.

Approved course

A course of instruction approved by the commission that satisfies the education requirements for prelicense education, postlicense education, or continuing education for a real estate license.

Associate instructor

A person who is licensed by the commission to teach real estate courses while under the supervision of an administrator or principal instructor that satisfy the education requirements for a real estate license.

Classroom course

A real estate course that is presented at a facility in person by an instructor and attended in person by the student, or connects an instructor and student by contemporaneous, two-way audio and visual technology.

Distance education

A real estate course that is delivered through an electronic medium that allows the instructor and student to be separated by both distance and time.

Nonqualified offering

A course in real estate education that has not been approved by the commission but is offered to persons intending to apply for a real estate license.

Principal instructor

A person licensed by the commission for each licensed school who is responsible for the education courses at a main school and the acts necessary to comply with real estate education laws and commission rules.

Actual introduction

The referral of a principal to a licensee by the person or entity seeking the referral fee before the principal and licensee have engaged in material discussions regarding a specific real estate transaction.

Interference with a licensee relationship

A demand for a referral fee without reasonable cause, a threat or action to reduce relocation benefits to obtain a referral fee, or an attempt to induce a principal to breach a representation agreement to obtain a referral fee.

Referral fee

Any mutually agreed-upon fee, commission, or other consideration to be paid by a licensee to any person or entity, excluding a cooperative commission offered between listing and selling licensees.

Representation agreement

An agreement between a principal and a licensee in which the licensee agrees to perform any of the activities of a principal broker, including buyer's agency agreements, property listing agreements, and cooperative brokerage agreements.

Accommodation

An apartment, condominium or cooperative unit, cabin, lodge, hotel or motel room, or other private or commercial structure affixed to real property, designed for occupancy by one or more individuals, and part of a time-share plan.

Acquisition agent

A person that by telephone, inducement, solicitation, or otherwise in the ordinary course of business directly tries to encourage a person in Arkansas to attend a sales presentation for a time-share plan.

Component site

A specific geographic location where accommodations that are part of a multisite time-share plan are located.

Consumer time-share reseller

A purchaser who acquires a time-share interest for his or her own use and occupancy and later offers the time-share interest or occupancy rights for resale or rental, or engages a time-share interest transfer services provider.

Developer (Time-Share)

A person who establishes a time-share plan, is in the business of selling time-share interests, or succeeds to a developer's interest offering at least twelve (12) time-share interests in a plan.

Exchange program

A method, arrangement, or procedure for the voluntary exchange of time-share interests among time-share owners.

Public offering statement

A required disclosure document provided to each purchaser of a time-share interest detailing developer information, accommodation descriptions, budgets, fees, liens, financing, and cancellation rights.

Time-share estate

An arrangement by which the purchaser receives a right to occupy a time-share property, together with a real estate interest in the time-share property.

Time-share use

Any arrangement under which the purchaser receives a right to occupy a time-share property but does not receive a time-share estate.

Time-share interest transfer services

Direct contact initiated with an Arkansas resident relating to services to transfer ownership, assist with transfer of ownership, or assist with a relinquishment or voluntary disposition of a consumer time-share interest.

Developer control period

A length of time provided in time-share estate instruments during which the developer, or a managing agent selected by the developer, may manage the time-share plan and its accommodations.