Arkansas Real Estate Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Get ready to ace your Arkansas Real Estate Exam. Use our engaging quizzes with flashcards and multiple choice questions to enhance your study experience. Prepare effectively by testing your knowledge and understanding of Arkansas real estate laws and practices!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What is required of a principal broker in regard to trust fund management?

Must maintain a personal account for trust funds
Either maintain a separate trust account or have an escrow agent
Donate a portion to charity
Invest them for short-term gains

The correct answer is: Either maintain a separate trust account or have an escrow agent

A principal broker is responsible for managing the trust funds of their clients, which includes any funds held in escrow for real estate transactions. As such, it is necessary for a principal broker to either maintain a separate trust account for these funds or have them held by an escrow agent. Options A, C, and D are incorrect because maintaining a personal account, donating funds to charity, or investing for short-term gains would not fulfill the principal broker's duty to properly manage and safeguard the trust funds.