Arkansas Real Estate Practice Exam

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

Prepare for the Arkansas Real Estate Exam with our comprehensive quiz featuring multiple-choice questions and detailed explanations. Get ready to showcase your real estate knowledge and secure your license!

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.