Arkansas Real Estate Practice Exam

Under what condition can a real estate firm continue operating after the Broker is terminated without a replacement?

1. After paying a continuation fee

2. When the Commission permits it

3. By hiring a temporary broker from another firm

4. If the broker was terminated for non-disciplinary reasons

The correct answer is: When the Commission permits it

A This option is incorrect because paying a continuation fee does not necessarily guarantee that a firm can continue operating without a replacement broker. C: Hiring a temporary broker from another firm may be a viable option, but it is not a guarantee and is not the specified condition in the question. D: This option is also incorrect because whether or not the termination was for disciplinary reasons does not determine if a firm can continue operating without a replacement. It depends on the specific circumstances and requirements set by the Commission. The correct answer is B because the Commission granting permission is the only specified condition in the question that would allow a real estate firm to continue operating without a replacement broker. None of the other options address this condition. While options A and C may be possible solutions, they are not the specified condition in the question. Option D is also incorrect as it does not specifically address the importance of obtaining permission from the Commission. It is important to carefully consider all choices and their relevance to the given question when choosing the best answer.