AREC Arkansas Broker Practice Exam 2026 – The Comprehensive All-in-One Guide to Success!

Advertising without revealing the broker's name is indeed not an illegal practice for a real estate licensee in every context. It is common and, in certain advertising scenarios, permissible for a licensee to advertise without explicitly stating the broker's name, particularly in more informal or less regulated settings. However, it is crucial for licensees to follow their specific state's laws and regulations, as they may vary. The primary objective in advertising is to avoid misleading the public, and as long as the advertising is not deceptive and adheres to state regulations, it is often considered acceptable.

In contrast, the other options represent clear violations of legal and ethical standards in real estate practice. Accepting fees for referrals from unlicensed individuals is typically considered unethical and illegal, as it undermines the licensing structure and could lead to penalties. Misrepresenting a property's value directly deceives potential buyers and erodes trust in the market, which is why it is illegal. Lastly, failing to disclose known defects in a property is a breach of the duty to inform and protect buyers, which can have significant legal ramifications for the licensee.