Free Arkansas Real Estate Practice Exam

Q1.Which federal law requires disclosure of lead-based paint hazards in residential properties built before 1978?

• A.Fair Housing Act
• B.Truth-in-Lending Act
• C.Residential Lead-Based Paint Hazard Reduction Act
• D.CERCLA

Q2.An Arkansas broker discovers that a salesperson working under their license has been practicing real estate without proper supervision. Under state law, what is the broker's potential liability?

• A.No liability since each licensee is individually responsible
• B.Limited liability only for transactions the broker personally handled
• C.Full responsibility for all acts of salespersons under their license
• D.Liability only if the broker had actual knowledge of violations

Q3.An Arkansas broker operates under multiple trade names in different cities. According to Commission rules, what must the broker do regarding these trade names?

• A.Obtain separate licenses for each trade name
• B.Register each trade name with the Commission and pay applicable fees
• C.Use only the name on the original license
• D.File articles of incorporation for each trade name

Q4.Under Arkansas Real Estate Commission rules, what is the maximum period a salesperson license may remain on inactive status?

• A.1 year
• B.2 years
• C.3 years
• D.5 years

Q5.According to Arkansas license law, which disclosure must be made to all parties in a real estate transaction?

• A.Disclosure of agency representation
• B.Disclosure of the broker's commission rate
• C.Disclosure of comparable sales data
• D.Disclosure of the property's assessed value

Q6.The fiduciary duty of loyalty requires an agent to:

• A.Always agree with the client's decisions
• B.Put the client's interests above the agent's own
• C.Disclose confidential information when beneficial
• D.Represent multiple clients in the same transaction

Q7.Under RESPA, which settlement service provider is prohibited from giving or receiving referral fees?

• A.Real estate brokers only
• B.Mortgage lenders only
• C.Title insurance companies only
• D.All settlement service providers

Q8.Under Arkansas law, when must a broker provide the Agency Disclosure Statement to a prospective client?

• A.At the closing of the transaction
• B.When the purchase agreement is signed
• C.At the first substantive contact about specific property
• D.Only if specifically requested by the client

Q9.Disparate impact discrimination differs from disparate treatment because:

• A.It requires proof of discriminatory intent
• B.It involves a facially neutral policy that disproportionately affects a protected class
• C.It only applies to commercial properties
• D.It is not actionable under the Fair Housing Act

Q10.According to Arkansas law, how many hours of continuing education must a broker complete each license renewal period?

• A.10 hours
• B.12 hours
• C.15 hours
• D.20 hours

Q11.A buyer is obtaining a $240,000 loan with a 6.5% annual interest rate. What is the monthly interest payment for the first month?

• A.$1,300
• B.$1,560
• C.$15,600
• D.$1,200

Q12.An Arkansas real estate salesperson working for ABC Realty has listed a property. Another salesperson from ABC Realty brings a buyer for the same property. What type of agency situation exists?

• A.Single agency with two different firms
• B.Dual agency at the company level
• C.Transaction brokerage
• D.No agency relationship exists

Q13.In Arkansas, a listing agent learns that their seller client has been making mortgage payments to avoid foreclosure but the property is still in pre-foreclosure status. When prospective buyers ask about the seller's motivation, the agent should:

• A.Disclose the pre-foreclosure status as it affects the title
• B.State only that the seller is motivated but keep foreclosure information confidential
• C.Refuse to answer any questions about seller motivation
• D.Advise buyers to research public records themselves

Q14.In Arkansas, which document must be recorded to perfect a mechanic's lien against real property?

• A.Notice of Intent to Lien
• B.Statement of Lien
• C.Preliminary Notice
• D.Lien Waiver

Q15.Under RESPA guidelines, if a borrower's loan amount is $240,000 and they pay 2 points, how much do they pay in points?

• A.$2,400
• B.$4,800
• C.$24,000
• D.$48,000