FINAL EXAM - ARKANSAS REAL
ESTATE PRINCIPLES QUESTIONS
WITH CORRECT ANSWERS!!
2.5 (One point = 1% of loan $75,000 x .01 = $750 $1,875 ÷ 750 = 2.5) - ANSWERA
$75,000 mortgage loan requires a discount of $1,875 to be paid by the seller. How
many points is this equivalent to?
Satisfaction of Mortgage - ANSWERClaire has just made the final payment to her
lender for her home's mortgage. However, a lien on her property will remain until the
lender records
The Appraiser Licensing and Certification Board - ANSWERIn Arkansas, appraisers
are regulated by
In Severalty - ANSWERJamal and Tina bought a store building and took title as joint
tenants. Tina died testate. Jamal now owns the store
Brownfields - ANSWERDefunct, derelict, or abandoned commercial or industrial
sites, which may contain toxic waste, are known as
$60,925 ($56,500 net proceeds + $160 ad allowance = $56,660; $56,660 ÷ 93%
(100% total costs - 7% commission) = $60,925 sales price.) - ANSWERA property
owner wishes to net $56,500 from the sale of a vacant lot. After paying an
advertising allowance of $160 and a 7% commission, what must the selling price be
(rounded to the nearest dollar)?
- ANSWERIn cooperative properties, the real estate is
A) Subject to proprietary leases given to shareholders.
B) Taxed individually to the shareholders.
C) Owned individually by the shareholders.
D) Mortgaged individually by the shareholders.
Department of Environmental Quality - ANSWERWhat government agency in
Arkansas has jurisdiction for the cleanup of hazardous waste and substances on
properties?
Illegal - ANSWERIn Arkansas blind ads are
Tenants in Common - ANSWERArun and Ben are joint tenants. Ben sells his interest
to George. What is the relationship of Arun and George?
640 Acres - ANSWERA standard rectangular survey system section contains
, - ANSWERTitle insurance would cover all of the following hidden defects discovered
after closing and not listed on the title commitment EXCEPT
A) A recorded mortgage satisfaction document.
B) A wrong name on a recorded deed.
C) An incorrect legal description.
D) A claim to ownership by the spouse of a former owner.
Interstate Land Sales Full Disclosure Act - ANSWERMany states have enacted a
subdivided land sales law to regulate the sale to state residents of land located
outside the state. All subdivision sales to residents outside the state are subject to
3 Years - ANSWERCopies of the lead-based disclosure forms must be retained for
at least
Secondary Mortgage Market - ANSWERMore loans can be made by lenders thanks
to the availability of
D (Crops) - ANSWERAn important characteristic of land is that it may be modified or
improved at some point in time. Depending on its type, an improvement may
increase the value of real estate greatly. All of the following are considered to be
improvements EXCEPT
A) Sewers.
B) Buildings.
C) Roads.
D) Crops.
Two Month's Rent - ANSWERIf a tenant is required to pay a security deposit, what is
the maximum amount the landlord can require?
A (Curtesy) - ANSWERWhich of the following is an NOT an example of a legal life
estate?
A) Curtesy
B) Remainder
C) Dower
D) Homestead
C (Successful defense against all charges based on loyalty to his client-seller) -
ANSWERA real estate professional is selling a home to a buyer and told her that the
foundation was "solid as a rock" when he knew for a fact that it was slowly sinking
into the landfill on which it was built. Now that the sale is completed, which of the
following is LEAST likely to happen to the real estate professional?
A) Suit to recover money damages experienced by the buyer due to basement
leakage
B) Being charged with intentional misrepresentation
C) Successful defense against all charges based on loyalty to his client-seller
D) Revocation of his license for failure to disclose a material fact
In Severalty - ANSWERIn Arkansas, spouses are presumed to hold title to real
estate
ESTATE PRINCIPLES QUESTIONS
WITH CORRECT ANSWERS!!
2.5 (One point = 1% of loan $75,000 x .01 = $750 $1,875 ÷ 750 = 2.5) - ANSWERA
$75,000 mortgage loan requires a discount of $1,875 to be paid by the seller. How
many points is this equivalent to?
Satisfaction of Mortgage - ANSWERClaire has just made the final payment to her
lender for her home's mortgage. However, a lien on her property will remain until the
lender records
The Appraiser Licensing and Certification Board - ANSWERIn Arkansas, appraisers
are regulated by
In Severalty - ANSWERJamal and Tina bought a store building and took title as joint
tenants. Tina died testate. Jamal now owns the store
Brownfields - ANSWERDefunct, derelict, or abandoned commercial or industrial
sites, which may contain toxic waste, are known as
$60,925 ($56,500 net proceeds + $160 ad allowance = $56,660; $56,660 ÷ 93%
(100% total costs - 7% commission) = $60,925 sales price.) - ANSWERA property
owner wishes to net $56,500 from the sale of a vacant lot. After paying an
advertising allowance of $160 and a 7% commission, what must the selling price be
(rounded to the nearest dollar)?
- ANSWERIn cooperative properties, the real estate is
A) Subject to proprietary leases given to shareholders.
B) Taxed individually to the shareholders.
C) Owned individually by the shareholders.
D) Mortgaged individually by the shareholders.
Department of Environmental Quality - ANSWERWhat government agency in
Arkansas has jurisdiction for the cleanup of hazardous waste and substances on
properties?
Illegal - ANSWERIn Arkansas blind ads are
Tenants in Common - ANSWERArun and Ben are joint tenants. Ben sells his interest
to George. What is the relationship of Arun and George?
640 Acres - ANSWERA standard rectangular survey system section contains
, - ANSWERTitle insurance would cover all of the following hidden defects discovered
after closing and not listed on the title commitment EXCEPT
A) A recorded mortgage satisfaction document.
B) A wrong name on a recorded deed.
C) An incorrect legal description.
D) A claim to ownership by the spouse of a former owner.
Interstate Land Sales Full Disclosure Act - ANSWERMany states have enacted a
subdivided land sales law to regulate the sale to state residents of land located
outside the state. All subdivision sales to residents outside the state are subject to
3 Years - ANSWERCopies of the lead-based disclosure forms must be retained for
at least
Secondary Mortgage Market - ANSWERMore loans can be made by lenders thanks
to the availability of
D (Crops) - ANSWERAn important characteristic of land is that it may be modified or
improved at some point in time. Depending on its type, an improvement may
increase the value of real estate greatly. All of the following are considered to be
improvements EXCEPT
A) Sewers.
B) Buildings.
C) Roads.
D) Crops.
Two Month's Rent - ANSWERIf a tenant is required to pay a security deposit, what is
the maximum amount the landlord can require?
A (Curtesy) - ANSWERWhich of the following is an NOT an example of a legal life
estate?
A) Curtesy
B) Remainder
C) Dower
D) Homestead
C (Successful defense against all charges based on loyalty to his client-seller) -
ANSWERA real estate professional is selling a home to a buyer and told her that the
foundation was "solid as a rock" when he knew for a fact that it was slowly sinking
into the landfill on which it was built. Now that the sale is completed, which of the
following is LEAST likely to happen to the real estate professional?
A) Suit to recover money damages experienced by the buyer due to basement
leakage
B) Being charged with intentional misrepresentation
C) Successful defense against all charges based on loyalty to his client-seller
D) Revocation of his license for failure to disclose a material fact
In Severalty - ANSWERIn Arkansas, spouses are presumed to hold title to real
estate
