Arkansas License Law
If a licensee holds a concurrent license as both a real estate salesperson and a mortgage loan originator (MLO), AREC requires the licensee to:
AImmediately surrender one of the two licenses
BFully disclose both capacities to any client and avoid conflicts of interest✓ Correct
CObtain special dual-license status from AREC
DOperate the two businesses from separate offices
Explanation
Holding both a real estate and MLO license creates the potential for conflicts of interest. AREC and applicable federal law require full disclosure to clients of the licensee's dual roles and prohibit undisclosed dual compensation in the same transaction.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
State-Specific Concepts
AREC Regulation
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