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) - Correct
Answers -A $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 - Correct Answers -Claire 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
- Correct Answers -In 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 - Correct Answers -What government agency in
Arkansas has jurisdiction for the cleanup of hazardous waste and substances on
properties?
Illegal - Correct Answers -In Arkansas blind ads are
Tenants in Common - Correct Answers -Arun and Ben are joint tenants. Ben sells his
interest to George. What is the relationship of Arun and George?
640 Acres - Correct Answers -A standard rectangular survey system section contains
- Correct Answers -Title 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 - Correct Answers -Many 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 - Correct Answers -Copies of the lead-based disclosure forms must be retained
for at least
Secondary Mortgage Market - Correct Answers -More loans can be made by lenders
thanks to the availability of
D (Crops) - Correct Answers -An 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 - Correct Answers -If a tenant is required to pay a security deposit,
what is the maximum amount the landlord can require?
A (Curtesy) - Correct Answers -Which 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) - Correct
Answers -A 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 - Correct Answers -In Arkansas, spouses are presumed to hold title to real
estate
The Appraiser Licensing and Certification Board - Correct Answers -In Arkansas,
appraisers are regulated by
ESTATE PRINCIPLES QUESTIONS
WITH CORRECT ANSWERS
2.5 (One point = 1% of loan $75,000 x .01 = $750 $1,875 ÷ 750 = 2.5) - Correct
Answers -A $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 - Correct Answers -Claire 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
- Correct Answers -In 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 - Correct Answers -What government agency in
Arkansas has jurisdiction for the cleanup of hazardous waste and substances on
properties?
Illegal - Correct Answers -In Arkansas blind ads are
Tenants in Common - Correct Answers -Arun and Ben are joint tenants. Ben sells his
interest to George. What is the relationship of Arun and George?
640 Acres - Correct Answers -A standard rectangular survey system section contains
- Correct Answers -Title 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 - Correct Answers -Many 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 - Correct Answers -Copies of the lead-based disclosure forms must be retained
for at least
Secondary Mortgage Market - Correct Answers -More loans can be made by lenders
thanks to the availability of
D (Crops) - Correct Answers -An 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 - Correct Answers -If a tenant is required to pay a security deposit,
what is the maximum amount the landlord can require?
A (Curtesy) - Correct Answers -Which 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) - Correct
Answers -A 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 - Correct Answers -In Arkansas, spouses are presumed to hold title to real
estate
The Appraiser Licensing and Certification Board - Correct Answers -In Arkansas,
appraisers are regulated by
