ARKANSAS STATE EXAM PRACTICE
QUESTIONS WITH CORRECT
ANSWERS
How soon after a possible license law violation is committed must a complaint be filed
with the Arkansas Real Estate Commission?
-Within five years of the alleged act
-Within one year of the alleged act
-Within three years of the alleged act
-Within two years of the alleged act - Correct Answers -Within three years of the alleged
act
By when must licensees deliver escrow funds to their principal broker in Arkansas?
-Immediately
-Within the next business day of sales contract signing
-Within three business days of the parties signing the contract
-Within two business weeks of receipt - Correct Answers -Immediately
Escrow funds must be delivered to the broker immediately. Once the contract is signed,
the broker has three days to deposit them in the firm's trust account, deliver them to an
escrow agent, or deposit them according to the parties' agreement.
What can happen if a brokerage firm changes location without letting the commission
know?
-The commission may impose steep fees and penalties.
-The firm can change locations without telling the commission.
-The firm may be required to post a sign at the old location, indicating that it has moved.
-The principal broker's license and all associated licensees' licenses could be cancelled.
- Correct Answers -The principal broker's license and all associated licensees' licenses
could be cancelled.
Joe manages several properties for Candice in Hot Springs. In a money pinch, Joe
decides to use a tenant's security deposit to pay for some needed maintenance on
another unit. Which is true regarding Joe's actions?
-Joe is allowed to use the deposit for other property management fees, as long as he
replaces the money within 72 hours.
-Joe is permitted to use the deposit as he deems necessary.
-Joe is prohibited from ever using the deposit for other fees by Arkansas license law.
, -Joe may use the deposit to pay for other expenses and fees, if this was specifically
allowed by the tenant agreement. - Correct Answers -Joe may use the deposit to pay for
other expenses and fees, if this was specifically allowed by the tenant agreement.
What is the primary purpose of a BPO?
-To help buyers determine how much to offer for a property.
-To help insurers determine the amount of liability insurance to place on a property.
-To help lenders determine the potential sales price for a property.
-To help sellers determine an appropriate listing price. - Correct Answers -To help
lenders determine the potential sales price for a property.
Arkansas salesperson Sebastian has just moved from College Station to Maumelle.
Which of the following must he now do?
-He must call AREC to inform them of his address change within five days.
-He must inform his broker in writing of his address change within one week. The broker
must then notify AREC of the changes.
-He must inform his broker of his address change within 10 days. The broker then has
up to 10 additional days to notify AREC for Sebastian.
-He must promptly contact AREC in writing to inform them of his address change. -
Correct Answers -He must promptly contact AREC in writing to inform them of his
address change.
Once handed over, trust funds belong to the ______ until the transaction for which they
were designated has been completed, or they're disbursed according to the agreement
between the parties.
-Bank
-Broker
-Licensee
-Party who submitted them - Correct Answers -Party who submitted them
Of the following, who is exempt from holding a real estate license?
-A broker with a client interested in purchasing a condo
-A for-profit multiple listing service
-An assistant who helps with professional real estate activities
-An attorney working professionally within a transaction - Correct Answers -An attorney
working professionally within a transaction
In Arkansas, which of the following is an example of self-dealing?
-A licensee lists his property with another firm and sells his home without informing
buyers of his license status.
-A licensee purchases a listing through his cousin but does not inform the seller.
-A licensee purchases a property for personal profit.
-A licensee sells a property for personal profit. - Correct Answers -A licensee purchases
a listing through his cousin but does not inform the seller.
QUESTIONS WITH CORRECT
ANSWERS
How soon after a possible license law violation is committed must a complaint be filed
with the Arkansas Real Estate Commission?
-Within five years of the alleged act
-Within one year of the alleged act
-Within three years of the alleged act
-Within two years of the alleged act - Correct Answers -Within three years of the alleged
act
By when must licensees deliver escrow funds to their principal broker in Arkansas?
-Immediately
-Within the next business day of sales contract signing
-Within three business days of the parties signing the contract
-Within two business weeks of receipt - Correct Answers -Immediately
Escrow funds must be delivered to the broker immediately. Once the contract is signed,
the broker has three days to deposit them in the firm's trust account, deliver them to an
escrow agent, or deposit them according to the parties' agreement.
What can happen if a brokerage firm changes location without letting the commission
know?
-The commission may impose steep fees and penalties.
-The firm can change locations without telling the commission.
-The firm may be required to post a sign at the old location, indicating that it has moved.
-The principal broker's license and all associated licensees' licenses could be cancelled.
- Correct Answers -The principal broker's license and all associated licensees' licenses
could be cancelled.
Joe manages several properties for Candice in Hot Springs. In a money pinch, Joe
decides to use a tenant's security deposit to pay for some needed maintenance on
another unit. Which is true regarding Joe's actions?
-Joe is allowed to use the deposit for other property management fees, as long as he
replaces the money within 72 hours.
-Joe is permitted to use the deposit as he deems necessary.
-Joe is prohibited from ever using the deposit for other fees by Arkansas license law.
, -Joe may use the deposit to pay for other expenses and fees, if this was specifically
allowed by the tenant agreement. - Correct Answers -Joe may use the deposit to pay for
other expenses and fees, if this was specifically allowed by the tenant agreement.
What is the primary purpose of a BPO?
-To help buyers determine how much to offer for a property.
-To help insurers determine the amount of liability insurance to place on a property.
-To help lenders determine the potential sales price for a property.
-To help sellers determine an appropriate listing price. - Correct Answers -To help
lenders determine the potential sales price for a property.
Arkansas salesperson Sebastian has just moved from College Station to Maumelle.
Which of the following must he now do?
-He must call AREC to inform them of his address change within five days.
-He must inform his broker in writing of his address change within one week. The broker
must then notify AREC of the changes.
-He must inform his broker of his address change within 10 days. The broker then has
up to 10 additional days to notify AREC for Sebastian.
-He must promptly contact AREC in writing to inform them of his address change. -
Correct Answers -He must promptly contact AREC in writing to inform them of his
address change.
Once handed over, trust funds belong to the ______ until the transaction for which they
were designated has been completed, or they're disbursed according to the agreement
between the parties.
-Bank
-Broker
-Licensee
-Party who submitted them - Correct Answers -Party who submitted them
Of the following, who is exempt from holding a real estate license?
-A broker with a client interested in purchasing a condo
-A for-profit multiple listing service
-An assistant who helps with professional real estate activities
-An attorney working professionally within a transaction - Correct Answers -An attorney
working professionally within a transaction
In Arkansas, which of the following is an example of self-dealing?
-A licensee lists his property with another firm and sells his home without informing
buyers of his license status.
-A licensee purchases a listing through his cousin but does not inform the seller.
-A licensee purchases a property for personal profit.
-A licensee sells a property for personal profit. - Correct Answers -A licensee purchases
a listing through his cousin but does not inform the seller.
