Free Arkansas Real Estate Practice Exam

Q1.Familial status protection under the FHA covers:

• A.Households with one or more children under 18, pregnant individuals, and anyone in the process of obtaining legal custody
• B.Only married couples with children
• C.Only families that are biologically related
• D.Only households with US citizen children

Q2.A broker acting as a transaction broker (non-agent facilitator) in a state that authorizes this status owes which set of duties to the parties in the transaction?

• A.Limited duties such as honesty, accounting for funds, and presenting all offers, but NOT full fiduciary duties such as undivided loyalty or obedience to either party.
• B.Full fiduciary duties to both the buyer and the seller simultaneously.
• C.Fiduciary duties exclusively to the seller because the seller pays the commission.
• D.No duties to either party because the transaction broker is a neutral third party similar to an escrow officer.

Q3.The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating against credit applicants based on which of the following?

• A.Credit history
• B.Marital status
• C.Income level
• D.Employment history

Q4.A property was the site of a methamphetamine laboratory that was properly remediated according to state standards. The current seller was never involved in the drug activity and purchased the property after remediation was completed. What is the seller's disclosure obligation regarding this information?

• A.No disclosure required since the property was properly remediated
• B.Must disclose as it may affect the property's value or desirability
• C.Must disclose only if specifically asked by the buyer
• D.Disclosure prohibited as it would constitute housing discrimination

Q5.Under Arkansas law, a developer who offers lots in an unplatted subdivision to the public must obtain prior approval from which entity before selling or offering those lots for sale?

• A.The Arkansas Real Estate Commission (AREC)
• B.The local county assessor's office
• C.The Arkansas Department of Health
• D.The Arkansas State Highway Commission

Q6.Under CERCLA (42 U.S.C. § 9601 et seq.), a broker sells a commercial property that is later found to contain significant hazardous waste contamination from a prior owner's industrial operations. The current seller had no involvement in the contamination. Which party is most likely to face CERCLA cleanup liability?

• A.The current owner/seller, because CERCLA imposes strict liability on current owners of contaminated property regardless of fault or knowledge of the contamination.
• B.Only the original polluter, because CERCLA liability attaches exclusively to the party who deposited the hazardous substances.
• C.The broker, because a broker who facilitates the sale of a contaminated property is jointly liable as an 'arranger' under CERCLA.
• D.Neither the seller nor any prior owner, because CERCLA liability requires proof of negligence.

Q7.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

Q8.An investor purchases a duplex for $180,000 and receives monthly rental income of $1,200 per unit. What is the gross rental multiplier (GRM) for this property?

• A.150
• B.7.5
• C.6.25
• D.12.5

Q9.The Arkansas Real Estate Commission is empowered to promulgate rules and regulations governing licensee conduct. Under Ark. Code Ann. Title 17, Chapter 42, which of the following best describes a fundamental limitation on this rulemaking authority?

• A.The Commission may only adopt rules that have first been approved by a two-thirds vote of the Arkansas General Assembly before they take effect
• B.The Commission's rules must be consistent with and cannot exceed the authority granted by the Arkansas Real Estate License Law, and are subject to the Arkansas Administrative Procedure Act
• C.The Commission may promulgate any rule it deems necessary for public protection, and those rules automatically supersede conflicting provisions of the Arkansas Real Estate License Law
• D.The Commission's rulemaking authority extends only to educational requirements and does not apply to disciplinary procedures or advertising standards

Q10.Under federal fair housing law, which of the following activities would be considered illegal discrimination in the rental of residential property?

• A.Refusing to rent to someone because they have a pit bull and the property has a no-pets policy
• B.Charging a higher security deposit for a tenant with a service animal
• C.Requiring all tenants to have a minimum credit score of 650
• D.Refusing to rent a one-bedroom apartment to a family with three children due to occupancy standards

Q11.Under Arkansas law, which state agency is primarily responsible for enforcing fair housing laws that prohibit discrimination in residential real estate transactions?

• A.The Arkansas Real Estate Commission (AREC)
• B.The Arkansas Fair Housing Commission
• C.The Arkansas Attorney General's Office
• D.The Arkansas Department of Human Services

Q12.Under CERCLA (Superfund), which party is typically NOT liable for environmental cleanup costs at a contaminated property?

• A.Current property owner
• B.Previous property owner who owned during contamination
• C.Innocent purchaser who conducted due diligence
• D.Lender who forecloses and takes title

Q13.Under Arkansas Real Estate Commission rules, which of the following actions by a salesperson would be considered a prohibited practice?

• A.Presenting all offers to the seller promptly, even if the seller has already accepted another offer
• B.Advertising a listed property after obtaining written permission from the principal broker
• C.Placing a 'For Sale' sign on a property without the written consent of the owner
• D.Disclosing to a buyer that the property is located in a flood zone

Q14.An Arkansas salesperson places an advertisement on social media for a listing that states only the property address, the price, and the salesperson's personal cell phone number. Under AREC advertising rules, why is this advertisement non-compliant?

• A.Social media advertising of real property is entirely prohibited for salespersons under Arkansas law.
• B.The advertisement must include the salesperson's license number prominently displayed alongside the property information.
• C.The advertisement fails to include the name of the principal broker or the licensed brokerage firm under which the salesperson is licensed.
• D.The advertisement is non-compliant only if the listing price exceeds a threshold set by the Arkansas Real Estate Commission.

Q15.Under Ark. Code Ann. Title 17, Chapter 42 and AREC rules, which of the following is a MANDATORY duty of an Arkansas principal broker with respect to affiliated salespersons?

• A.The principal broker must co-sign every purchase agreement drafted by an affiliated salesperson before the salesperson may present it to a client.
• B.The principal broker must actively supervise affiliated licensees, ensure they comply with Arkansas real estate law, and is responsible for trust funds and documents handled by those licensees.
• C.The principal broker must require all affiliated salespersons to work exclusively from the broker's main office and may not authorize remote or home-based work under any circumstances.
• D.The principal broker must personally review and approve all MLS listings entered by affiliated salespersons within 24 hours of submission.