17-42-103. Definitions.

17-42-103. Definitions. As used in this chapter: (1)(A) “Associate broker” means 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 any activity described in subdivision (10) of this section while under the supervision of a principal broker or executive broker. (B) An associate broker shall have no supervisory authority over any other licensee; (2) “Branch office” means a principal broker's office other than his or her principal place of business; (3) “Broker's price opinion” means 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; (4) “Classroom hour” means a period of at least fifty (50) minutes, but not more than sixty (60) minutes, of actual classroom instruction with the instructor present; (5) “Continuing education” means 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; (6) “Continuing education unit” means a period of ten (10) contact hours of actual classroom instruction with the instructor present; (7)(A) “Executive broker” means an individual who: (i) Has a broker's license; (ii) Is employed by a principal broker or associated with a principal broker as an independent contractor; and (iii) Participates in any activity described in subdivision (10) of this section while under the supervision of a principal broker. (B) An executive broker may supervise associate brokers and salespersons; (8)(A) “Licensee” means an individual who holds any type of license issued by the commission. (B) “Licensee” includes a principal broker, an executive broker, an associate broker, and a salesperson. (C) This chapter does not preclude a licensee from: (i) Doing business as a professional corporation under § 4-29-101 et seq.; or (ii) Receiving payment from a real estate firm or principal broker of an earned commission to the licensee's legal business entity if the licensee earned the commission on behalf of the real estate firm or principal broker; (9) “Participate in a real estate auction” means to do any act or conduct for compensation or the expectation of compensation and designed, intended, or expected to affect the bidding or results of a real estate auction, including without limitation serving as an auctioneer or ringman or encouraging, soliciting, or receiving bids; (10) “Principal broker” means an individual expecting to act or acting for another for a fee, commission, or other consideration who: (A) Sells, exchanges, purchases, rents, or leases real estate; (B) Offers to sell, exchange, purchase, rent, or lease real estate; (C) Negotiates, offers, attempts, or agrees to negotiate the sale, exchange, purchase, rent, or lease of real estate; (D) Lists, offers, attempts, or agrees to list real estate for sale, lease, or exchange; (E) Auctions, offers, attempts, or agrees to auction real estate, or participates in a real estate auction; (F) Buys, sells, or assigns or offers to buy, sell, or assign or otherwise deals in options on real estate or improvements to real estate; (G) Collects, offers, attempts, or agrees to collect rent for the use of real estate; (H) Advertises or holds himself or herself out as being engaged in the business of buying, selling, exchanging, renting, or leasing real estate; (I) Assists or directs in the procuring of prospects calculated to result in the sale, exchange, lease, or rent of real estate; (J) Assists or directs in the negotiation of any transaction calculated or intended to result in the sale, exchange, lease, or rent of real estate; (K) Engages in the business of charging an advance fee in connection with any contract whereby he or she undertakes to promote the sale or lease of real estate either through its listing in a publication issued for such a purpose or for referral of information concerning the real estate to brokers, or both; or (L) Performs any of the acts described in this subdivision (10) as an employee of or on behalf of the owner of, or any person who has an interest in, real estate; (11)(A) “Real estate” means an interest in real property. (B) “Real estate” includes without limitation a leasehold, time-share interval, or an interest in real property that is purchased or sold in connection with the purchase or sale of all or part of the assets, stock, or other ownership interest of a business or other organization; (12) “Salesperson” means an individual who: (A) Has a salesperson's license; (B) Is employed by a principal broker or is associated with a principal broker as an independent contractor; and (C) Participates in any activity described in subdivision (10) of this section while under the supervision of a principal broker or executive broker; and (13) “Unlicensed real estate activity” means offering or engaging in any practice, act, or operation set forth in subdivision (10) of this section without a valid active Arkansas license issued by the commission.