1. Under federal law, a buyer of a pre-1978 home must be given an opportunity to conduct a lead-based paint inspection of at least:
Answer & explanation
Answer: B. The Lead-Based Paint Disclosure Rule gives buyers a 10-day opportunity to inspect, which may be lengthened, shortened by agreement, or waived.
2. Under Arkansas fair housing law, housing for persons 55 or older qualifies for the older-persons exemption only if at least what percentage of occupied units have one occupant 55 or older?
Answer & explanation
Answer: C. Ark. Code §16-123-307(d) requires at least 80% of occupied units to have an occupant 55 or older, plus published policies and age verification.
3. A person who believes she suffered housing discrimination under the federal Fair Housing Act may file a complaint with HUD within:
Answer & explanation
Answer: C. HUD complaints must be filed within one year; a federal civil suit may be filed within two years.
4. Ark. Code §17-42-108 requires a licensee to clearly disclose to all parties or their agents
Answer & explanation
Answer: B. Section 17-42-108 requires clear disclosure of whom the licensee represents, with timing and method set by Commission rules.
5. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?
Answer & explanation
Answer: A. Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)
6. A chronological summary of all recorded documents affecting a property's title, such as deeds, mortgages and liens, is a(n):
Answer & explanation
Answer: D. The abstract summarizes the recorded history; the chain of title lists successive owners; an attorney's opinion of title evaluates it.
7. Under the government (rectangular) survey system, a standard township is:
Answer & explanation
Answer: B. Townships are 6 x 6 miles (36 square miles) divided into 36 one-square-mile sections of 640 acres, numbered from section 1 in the northeast corner.
8. On a property condition disclosure form, if a seller does not know the age of the roof, the seller should:
Answer & explanation
Answer: C. Only the seller completes the form, reporting what is known and stating when something is unknown; guessing creates liability.
9. A tenant paid a $1,800 deposit. At move-out there is $250 of unpaid rent and $400 of damage beyond normal wear. How much must be refunded?
Answer & explanation
Answer: C. $1,800 − $250 − $400 = $1,150. Unpaid rent and damages from noncompliance may be deducted with an itemized notice under §18-16-305.
10. Which statement correctly describes the makeup of the Arkansas Real Estate Commission?
Answer & explanation
Answer: B. Section 17-42-201 requires three licensee members licensed at least five years and two public members: a consumer representative and an elderly representative age 60 or older. No seats are reserved for attorneys or appraisers.
11. Three joint tenants own a property. One dies leaving a will that gives her share to her son. The son receives:
Answer & explanation
Answer: A. Survivorship operates outside the will; the deceased's interest goes to the surviving joint tenants.
12. A private individual selling her own single-family home may be exempt from the federal Fair Housing Act if she owns no more than three homes and:
Answer & explanation
Answer: C. The single-family owner exemption requires no broker and no discriminatory advertising. Race discrimination is never exempt under the 1866 Civil Rights Act.
13. Arkansas real estate licenses expire on
Answer & explanation
Answer: A. 17 CAR 220-601 provides that all licenses expire December 31. September 30 is the deadline to file the renewal at the regular fee.
14. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?
Answer & explanation
Answer: C. Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.
15. After notice and a hearing, the Commission may impose a civil penalty on a person who engaged in unlicensed real estate activity of up to
Answer & explanation
Answer: A. Section 17-42-109 authorizes up to $5,000 plus costs, and the Commission may require the person to repay compensation collected. $1,000 per violation applies to licensees after a hearing.
16. Asbestos in an older home poses the greatest health risk when it is:
Answer & explanation
Answer: B. Asbestos is mainly dangerous when friable or disturbed (e.g., during renovation); intact materials typically pose little risk.
17. Which listing agreement violates AREC rules?
Answer & explanation
Answer: C. 17 CAR 220-1002 requires every written agency agreement and extension to have a specific determinable duration or expiration date. Until sold has neither.
18. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?
Answer & explanation
Answer: B. LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.
19. Under the statute of frauds, a real estate sales contract must be:
Answer & explanation
Answer: C. The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.
20. A built-in dishwasher attached to the cabinetry is best classified as:
Answer & explanation
Answer: C. Once personal property is permanently attached to real estate it becomes a fixture and is treated as real property. A trade fixture is installed by a tenant for business use, which is not the case here.
21. Local governments enforce zoning ordinances and building codes primarily through:
Answer & explanation
Answer: B. Building permits verify compliance with zoning and codes before construction; inspections confirm the work, leading to a certificate of occupancy.
22. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:
Answer & explanation
Answer: C. Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.
23. A broker disburses disputed earnest money based on a reasonable interpretation of the contract, without a written release from all parties. The broker must
Answer & explanation
Answer: C. 17 CAR 220-1008 requires immediate written notice to all parties when disbursement occurs without written agreement of all parties.
24. Which person may complete the sale of another person's Arkansas home without a real estate license?
Answer & explanation
Answer: C. Section 17-42-104 exempts an attorney in fact only when the power of attorney is duly executed and recorded and no fee or compensation is received. Payment or an unrecorded power removes the exemption.
25. After the Recovery Fund pays a claim caused by a licensee, the licensee's license is
Answer & explanation
Answer: D. Section 17-42-409 requires immediate suspension until full repayment plus interest, at a rate set by the Commission not exceeding 10% per year.
Sources
Source verification pending. Confirm current requirements with your state regulator.