REAL ESTATE ARKANSAS EXAM
QUESTIONS WITH CORRECT
ANSWERS
If Harley, a buyer looking at a property in Mena, were given misinformation about the
property by Bentley, his buyer agent, who is responsible? - Correct Answers -Bentley*
Harley
Seller
Seller's agent
- When buyers have their own agent, the seller's agent is not responsible for the actions
of the buyer's agent.
Burt owns a development company that specializes in constructing new, energy-efficient
houses. The best approach for an appraiser to use in the appraisal of Burt's newly built
homes is the - Correct Answers -Appraisal process
Cost approach*
Income approach
Sales comparison approach
Carlton, a salesperson, received escrow money for a transaction the day the contract
had been signed by both parties. By Arkansas law, within how many days must the
funds be deposited into the firm's trust account if Carlton's clients agreed his broker will
manage escrow? - Correct Answers -10 days
Five days
Three days*
Two days
- By law, the broker is required to deposit the trust funds within three business days of
the contract being signed
What special concern do foreclosed properties often present? - Correct Answers -
Buying the property at a discount may have tax implications.
The homeowners may or may not have property insurance.
The property sale may be subject to additional fees that will be passed to the new
buyer.
There could be hidden title issues.*
- While a foreclosed property may very well be a fixer-upper, typically you should be
more concerned with any hidden title issues it may have
,Eliza is researching what requirements she needs to meet to obtain her salesperson
license in Arkansas. Which of the following is NOT a requirement she'll need to fulfill -
Correct Answers -She has to complete a criminal background check.
She must be over 18 years old.
She must have two years of real estate experience.*
She needs to complete 60 hours of real estate education.
- Salesperson applicants don't need to have any experience to obtain their license. They
must, however, be over 18 years old, complete a background check, finish 60 hours of
pre-licensing education, and pass their licensing exam
Glenn is purchasing a home for $400,000. The property appraised at $415,000 and
Glenn is financing $300,000. What's the loan-to-value ratio - Correct Answers -72%
75%*
82%
96%
-Lenders use the lesser of the sales price or appraised value. This results in an LTV
ratio of 75% ($300,000 ÷ $400,000).
Licensee Jude is representing Christian in the sale of his property in Fort Smith to
Roberta, the buyer customer. Which of these statements is true? - Correct Answers -
Although Jude has an obligation of absolute fidelity to Christian, this does not relieve
him of his obligation of dealing honestly with Roberta.*
Jude has an obligation of absolute fidelity to the interest of his customer, Roberta.
Jude has been relieved from his obligation of dealing honestly with Roberta because
she is not his client.
Jude is not required to protect and promote the interests of Christian, his client.
-Upon entering into an agency agreement, Arkansas licensees pledge to protect and
promote the interests of the client(s) but remain obligated to deal honestly with all
parties in the transaction
Jared wants to purchase property. One of the properties his agent shows him was
formerly zoned for commercial use. It has a steep drop off at the back of the property,
as well as some soft spots and mounds. Should Jared's agent recommend that he have
a home inspector investigate it? - Correct Answers -No, Jared can address the cliff by
bringing in additional soil.
No, Jared is going to bulldoze the entire property to flatten it out anyway.
Yes, these are clues that the property may have been used as a waste disposal site.*
, Yes, these are indications of an underground storage tank
Seller Amy wants Arkansas licensee Kevin to represent her as a listing agent, and she
wants to waive some agency duties. How can she do this - Correct Answers -Amy and
Kevin must make the waiver of duties statement part of their agency agreement.*
Amy and Kevin must make the waiver of duties statement part of the purchase contract.
Amy must tell Kevin at some point during their relationship.
Amy must tell Kevin at the beginning of their relationship.
Marilyn is reviewing the inspection report with her buyer clients. Which of the following
issues in the report should Marilyn flag as most significant - Correct Answers -Broken
dishwasher
Lack of deadbolts
Non-working sump pump
Presence of mold*
Leo's client is looking for a property with at least 2,500 finished square feet. Leo finds a
2,200-square-foot property with all the other features the client is looking for, and
purposely doesn't mention the square footage to his client. His client agrees to look at
the property, falls in love with it, and wants to make an offer, but does not realize it
doesn't contain his desired square footage. Which of these statements accurately
represents Leo's level of misrepresentation in this situation - Correct Answers -Because
Leo didn't state the square footage, he's not guilty of misrepresentation.
It's the buyer's responsibility to ensure that the property has the proper square footage,
so Leo's in the clear.
Leo accidentally omitted a material fact. This is considered unintentional
misrepresentation.
Leo knew about the square footage and intentionally didn't mention it. He's guilty of
intentional misrepresentation.
Which form of real property ownership (for owners other than married couples) means
there's equal ownership shares with undivided possession rights - Correct Answers -
Joint tenancy*
Tenancy by the entirety
Tenancy in common
Tenancy in severalty
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a
patio home in a small town an hour from the city, while Lewis purchased a condo in a
QUESTIONS WITH CORRECT
ANSWERS
If Harley, a buyer looking at a property in Mena, were given misinformation about the
property by Bentley, his buyer agent, who is responsible? - Correct Answers -Bentley*
Harley
Seller
Seller's agent
- When buyers have their own agent, the seller's agent is not responsible for the actions
of the buyer's agent.
Burt owns a development company that specializes in constructing new, energy-efficient
houses. The best approach for an appraiser to use in the appraisal of Burt's newly built
homes is the - Correct Answers -Appraisal process
Cost approach*
Income approach
Sales comparison approach
Carlton, a salesperson, received escrow money for a transaction the day the contract
had been signed by both parties. By Arkansas law, within how many days must the
funds be deposited into the firm's trust account if Carlton's clients agreed his broker will
manage escrow? - Correct Answers -10 days
Five days
Three days*
Two days
- By law, the broker is required to deposit the trust funds within three business days of
the contract being signed
What special concern do foreclosed properties often present? - Correct Answers -
Buying the property at a discount may have tax implications.
The homeowners may or may not have property insurance.
The property sale may be subject to additional fees that will be passed to the new
buyer.
There could be hidden title issues.*
- While a foreclosed property may very well be a fixer-upper, typically you should be
more concerned with any hidden title issues it may have
,Eliza is researching what requirements she needs to meet to obtain her salesperson
license in Arkansas. Which of the following is NOT a requirement she'll need to fulfill -
Correct Answers -She has to complete a criminal background check.
She must be over 18 years old.
She must have two years of real estate experience.*
She needs to complete 60 hours of real estate education.
- Salesperson applicants don't need to have any experience to obtain their license. They
must, however, be over 18 years old, complete a background check, finish 60 hours of
pre-licensing education, and pass their licensing exam
Glenn is purchasing a home for $400,000. The property appraised at $415,000 and
Glenn is financing $300,000. What's the loan-to-value ratio - Correct Answers -72%
75%*
82%
96%
-Lenders use the lesser of the sales price or appraised value. This results in an LTV
ratio of 75% ($300,000 ÷ $400,000).
Licensee Jude is representing Christian in the sale of his property in Fort Smith to
Roberta, the buyer customer. Which of these statements is true? - Correct Answers -
Although Jude has an obligation of absolute fidelity to Christian, this does not relieve
him of his obligation of dealing honestly with Roberta.*
Jude has an obligation of absolute fidelity to the interest of his customer, Roberta.
Jude has been relieved from his obligation of dealing honestly with Roberta because
she is not his client.
Jude is not required to protect and promote the interests of Christian, his client.
-Upon entering into an agency agreement, Arkansas licensees pledge to protect and
promote the interests of the client(s) but remain obligated to deal honestly with all
parties in the transaction
Jared wants to purchase property. One of the properties his agent shows him was
formerly zoned for commercial use. It has a steep drop off at the back of the property,
as well as some soft spots and mounds. Should Jared's agent recommend that he have
a home inspector investigate it? - Correct Answers -No, Jared can address the cliff by
bringing in additional soil.
No, Jared is going to bulldoze the entire property to flatten it out anyway.
Yes, these are clues that the property may have been used as a waste disposal site.*
, Yes, these are indications of an underground storage tank
Seller Amy wants Arkansas licensee Kevin to represent her as a listing agent, and she
wants to waive some agency duties. How can she do this - Correct Answers -Amy and
Kevin must make the waiver of duties statement part of their agency agreement.*
Amy and Kevin must make the waiver of duties statement part of the purchase contract.
Amy must tell Kevin at some point during their relationship.
Amy must tell Kevin at the beginning of their relationship.
Marilyn is reviewing the inspection report with her buyer clients. Which of the following
issues in the report should Marilyn flag as most significant - Correct Answers -Broken
dishwasher
Lack of deadbolts
Non-working sump pump
Presence of mold*
Leo's client is looking for a property with at least 2,500 finished square feet. Leo finds a
2,200-square-foot property with all the other features the client is looking for, and
purposely doesn't mention the square footage to his client. His client agrees to look at
the property, falls in love with it, and wants to make an offer, but does not realize it
doesn't contain his desired square footage. Which of these statements accurately
represents Leo's level of misrepresentation in this situation - Correct Answers -Because
Leo didn't state the square footage, he's not guilty of misrepresentation.
It's the buyer's responsibility to ensure that the property has the proper square footage,
so Leo's in the clear.
Leo accidentally omitted a material fact. This is considered unintentional
misrepresentation.
Leo knew about the square footage and intentionally didn't mention it. He's guilty of
intentional misrepresentation.
Which form of real property ownership (for owners other than married couples) means
there's equal ownership shares with undivided possession rights - Correct Answers -
Joint tenancy*
Tenancy by the entirety
Tenancy in common
Tenancy in severalty
Allen and Lewis are friends who each recently purchased real estate. Allen purchased a
patio home in a small town an hour from the city, while Lewis purchased a condo in a
