Free Arkansas Real Estate Practice Exam

Q1.An Arkansas principal broker is closing their brokerage. Under AREC rules governing record retention, which of the following BEST describes the broker's obligation regarding transaction files?

• A.The broker must immediately surrender all transaction files to the AREC office upon closing the brokerage.
• B.The broker must retain all transaction records for a minimum of five years from the date of the transaction, even after the brokerage ceases operations.
• C.The broker's record-keeping obligation terminates upon closing the brokerage, and records may be destroyed to protect client confidentiality.
• D.The broker must transfer all transaction files to the clients involved in each transaction within 30 days of closing the brokerage.

Q2.What is the key difference between a reasonable accommodation and a reasonable modification?

• A.Accommodations are physical changes; modifications are policy changes
• B.Accommodations are policy/rule changes paid for by the housing provider; modifications are physical changes paid for by the resident
• C.Both are paid for by the housing provider
• D.Both are paid for by the resident

Q3.A deed conveying property 'to Maria and Sofia as joint tenants with right of survivorship' requires how many unities?

• A.One — unity of possession only
• B.Two — time and title
• C.Four — time, title, interest, and possession
• D.Three — time, title, and interest

Q4.Under Arkansas law, when must a licensee who is working with a buyer as a buyer's agent first provide the written agency disclosure to that buyer?

• A.Before the buyer signs any offer to purchase real property
• B.At the first substantive contact with the buyer
• C.Only after the buyer has identified a specific property they wish to purchase
• D.Within 24 hours of entering into a written buyer-representation agreement

Q5.Under Arkansas law, which of the following statements correctly distinguishes a salesperson's license from a broker's license?

• A.A salesperson may operate independently and maintain their own escrow accounts
• B.A salesperson must work under the supervision of a licensed Arkansas real estate broker
• C.A salesperson and a broker have identical authority to conduct real estate transactions
• D.A salesperson may supervise other licensees after completing 60 hours of education

Q6.A salesperson licensed in Arkansas decides to leave their current brokerage and affiliate with a new principal broker. Under Arkansas law, the salesperson may begin performing real estate activities under the new broker:

• A.Immediately upon giving verbal notice to the original broker
• B.Only after the Arkansas Real Estate Commission has issued a new license reflecting the affiliation with the new broker
• C.After a mandatory 30-day waiting period following termination from the previous broker
• D.As soon as the new principal broker submits a written transfer request to AREC, even before the license is reissued

Q7.What type of contract exists when only one party is legally bound to perform?

• A.Bilateral contract
• B.Executed contract
• C.Unilateral contract
• D.Express contract

Q8.A broker's firm represents both the seller and the buyer in the same transaction under a disclosed dual agency arrangement. After written consent is obtained from both parties, the broker learns that the seller's financial situation has become desperate and the seller will accept significantly less than the listed price. What is the broker's most appropriate course of action?

• A.Disclose the seller's financial distress to the buyer, since both parties have consented to dual agency.
• B.Maintain confidentiality of the seller's financial situation and refrain from sharing it with the buyer, consistent with dual agency obligations.
• C.Withdraw from representing the buyer so the full fiduciary duty can be owed to the seller.
• D.Advise the buyer to submit a lowball offer based on the broker's general market knowledge without referencing the seller's situation.

Q9.Under Arkansas Real Estate Commission rules, which of the following actions by a dual agent is permissible without violating the duties owed to either client?

• A.Advising the seller that the buyer has set a firm maximum price she will pay
• B.Telling the buyer that the seller will accept significantly less than the listing price
• C.Presenting all offers and counteroffers to both parties in a timely and objective manner
• D.Recommending a specific negotiating strategy to the buyer to gain an advantage over the seller

Q10.A buyer's agent in Arkansas has negotiated a purchase agreement on behalf of a buyer client. After the contract is signed, the buyer's agent learns that the buyer intends to demolish the house and build a commercial structure, which local zoning may not permit. Under Arkansas agency law, what should the buyer's agent do?

• A.Keep the information confidential because it relates to the buyer's future plans and is protected by the duty of loyalty
• B.Advise the buyer to verify that the intended use complies with local zoning regulations, as the agent owes the client the duty of reasonable care and diligence
• C.Immediately disclose the buyer's plans to the seller so the seller can rescind the contract
• D.Do nothing, because the agent's duties end once the purchase agreement is signed

Q11.Under the concept of police power, which of the following would NOT be a valid exercise of government authority over private property?

• A.Requiring environmental impact assessments for new developments
• B.Taking private property for public use without just compensation
• C.Establishing setback requirements for new construction
• D.Limiting building heights in residential areas

Q12.A landlord tells a rental applicant: 'I'll waive your late fee if you come over tonight.' This is an example of which type of housing harassment?

• A.Hostile environment harassment
• B.Quid pro quo harassment
• C.Third-party harassment
• D.Constructive eviction

Q13.The Arkansas Fair Housing Act prohibits discrimination in the sale or rental of housing. Which of the following protected classes is included under Arkansas state fair housing law IN ADDITION to those protected under the federal Fair Housing Act?

• A.Marital status
• B.Sexual orientation
• C.Age
• D.Arkansas state law does not add any protected classes beyond federal law

Q14.A newly licensed Arkansas real estate salesperson must complete post-license education within a specified period after obtaining their initial license. Which of the following correctly describes this Arkansas requirement?

• A.18 hours of continuing education must be completed within one year of licensure
• B.30 hours of post-license education must be completed within the first renewal period
• C.No post-license education is required; only continuing education at renewal is mandatory
• D.60 hours of additional education must be completed within two years of licensure

Q15.Which federal environmental law created the Superfund program to clean up contaminated sites?

• A.Clean Air Act
• B.Clean Water Act
• C.Safe Drinking Water Act
• D.CERCLA