Free Arkansas Real Estate Practice Exam

Q1.A licensed Arkansas salesperson, without the knowledge of her principal broker, verbally agrees to accept a commission directly from a seller she represented. Under Arkansas law, which of the following statements best describes this arrangement?

• A.It is permissible as long as the salesperson discloses the arrangement to the Arkansas Real Estate Commission within 10 days.
• B.It is prohibited because an Arkansas salesperson may only receive compensation through her principal broker.
• C.It is permissible because the seller and salesperson are both consenting adults and no third party is harmed.
• D.It is permissible only if the transaction closes and the amount does not exceed one month's salary equivalent.

Q2.Which federal agency is primarily responsible for enforcing the Equal Credit Opportunity Act (ECOA) as it applies to mortgage lenders?

• A.Department of Housing and Urban Development (HUD)
• B.Consumer Financial Protection Bureau (CFPB)
• C.Federal Trade Commission (FTC)
• D.Federal Reserve Board (FRB)

Q3.Under RESPA, a lender may collect a monthly escrow cushion for taxes and insurance. What is the maximum escrow cushion a lender is permitted to maintain in a borrower's escrow account?

• A.One month's worth of escrow payments
• B.Two months' worth of escrow payments
• C.Three months' worth of escrow payments
• D.Six months' worth of escrow payments

Q4.How often must an Arkansas real estate salesperson renew their license, and what body is responsible for administering that renewal?

• A.Every year, administered by the Arkansas Secretary of State
• B.Every two years, administered by the Arkansas Real Estate Commission
• C.Every three years, administered by the Arkansas Department of Labor
• D.Every four years, administered by the National Association of REALTORS®

Q5.How soon must undisputed, noncontingent property-management money generally be deposited?

• A.Within one calendar day
• B.Within three banking days after receipt
• C.By the next monthly reconciliation
• D.Within ten business days

Q6.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

Q7.Under the Equal Credit Opportunity Act (ECOA, 15 U.S.C. § 1691), a lender denies a loan application. Which of the following requirements is the lender legally obligated to fulfill?

• A.Notify the applicant of the adverse action and provide the specific reasons within 30 days
• B.Offer the applicant a counter-proposal at a higher interest rate before issuing a denial
• C.Refer the applicant to a HUD-approved housing counselor before denying the loan
• D.Allow the applicant a 60-day appeal period before the denial becomes final

Q8.A broker is selling a 1965 residential dwelling. Under the Residential Lead-Based Paint Hazard Reduction Act (42 U.S.C. § 4852d) and EPA/HUD regulations, which of the following is a mandatory broker obligation BEFORE the purchaser is obligated under a sales contract?

• A.Ensure the seller provides the buyer with an EPA-approved lead hazard information pamphlet and any known lead-based paint disclosure, and allow the buyer a 10-day period to conduct a risk assessment or inspection.
• B.Arrange and pay for a certified lead inspection of the property at the broker's expense before listing the property.
• C.Obtain a written certification from a state-licensed lead inspector confirming the absence of lead-based paint before any offers are presented.
• D.Disclose only if the broker has actual knowledge of lead-based paint; there is no proactive duty to provide pamphlets or allow inspection periods.

Q9.Which agent behavior constitutes illegal steering under the Fair Housing Act?

• A.Directing a buyer of a specific ethnicity toward or away from neighborhoods based on the racial composition of those areas
• B.Showing a buyer properties only within their stated price range
• C.Declining to show properties that do not meet the buyer's stated school district preference
• D.Recommending neighborhoods based on the buyer's commute requirements

Q10.Under A.R.S. § 32-2127(C), who may manage a branch office?

• A.Only an unlicensed office manager.
• B.A broker or licensed salesperson.
• C.Only the designated broker in person.
• D.Any team leader.

Q11.Under RESPA (12 U.S.C. § 2601 et seq.), a lender's escrow account analysis reveals that a borrower's monthly escrow deposit is $410. The lender collected an initial escrow deposit at closing. At the low point of the escrow account during the year, the balance is $205. What is the maximum cushion the lender is permitted to maintain in the escrow account above the lowest projected balance?

• A.$820
• B.$410
• C.$615
• D.$205

Q12.The tenant receives a mailed itemized deduction statement and does not dispute it. After what period does the statute state that further claims to the amount stated are waived?

• A.10 days
• B.30 days
• C.60 days
• D.One year

Q13.What minimum retention period does § 32-2175 specify for records concerning a finder's fee?

• A.One year
• B.Three years
• C.Five years
• D.Seven years

Q14.Under the Fair Housing Act's 1988 amendments, a property owner is required to permit a tenant with a disability to make reasonable modifications to the premises. Which of the following statements is MOST accurate regarding who bears the cost of these modifications?

• A.The cost must always be paid by the property owner as part of the reasonable accommodation obligation
• B.The cost is shared equally between the landlord and tenant regardless of the property type
• C.The tenant generally bears the cost of reasonable modifications to private housing, but the landlord may require restoration of the premises upon lease termination
• D.The Department of Housing and Urban Development reimburses landlords for all approved modification costs through federal grants

Q15.A team ad makes the team look like a separate brokerage. What is the best correction?

• A.Remove the employing broker name.
• B.Make the employing broker legal name or licensed DBA clear and prominent and follow current team guidance.
• C.Create a second license for the team name automatically.
• D.Limit the ad to social media.