AREC Arkansas Broker Practice Exam

The correct answer highlights an essential aspect of real estate practice governed by state licensing laws. In Arkansas, as in many other states, a real estate firm must be supervised by a licensed broker. If the only broker in the firm passes away, sales personnel cannot operate independently because the law requires that all real estate activities be conducted under the supervision of a licensed broker. This ensures consumer protection and maintains the professional standards of the industry.

In this situation, salespersons cannot conduct transactions or represent clients until another licensed broker is designated to take over the firm's operations or until AREC provides specific guidance or approval. This regulation is in place to safeguard the interests of the public and to ensure that all real estate transactions are handled by qualified individuals who hold the necessary licenses and have met the training and ethical standards required by the law.

Thus, the permanence of broker supervision is a critical concept within real estate practice, ensuring accountability and professionalism in the field.