Free Arkansas Agency Practice Test — LicenseIQ

Question 1

A seller instructs the listing agent not to tell buyers about a known, unrepaired roof leak. Under §17-42-316, the agent

Accepted Answer

Agents must follow a client's lawful instructions unless doing so would expose the licensee to liability to another party. Concealing a known material defect is not lawful.

Question 2

The best way to create an agency relationship is a(n):

Accepted Answer

A written express agreement clearly defines parties, duties and compensation and is enforceable.

Question 3

A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

Accepted Answer

Obedience requires following lawful instructions only. Discriminatory instructions violate fair housing laws and must be refused.

Question 4

The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

Accepted Answer

The duty of accounting requires the agent to track, report on and properly handle all funds and documents belonging to the client.

Question 5

Under AREC rules, who must sign an offer that a buyer's agent receives from a buyer?

Accepted Answer

17 CAR 220-1011 requires offers to be signed by the receiving licensee and supervising broker. Acceptances are signed by the listing licensee and that licensee's supervising broker. The supervising broker must sign before closing.

Question 6

Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Accepted Answer

Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Question 7

A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

Accepted Answer

A general agent handles a range of matters in a continuing relationship (typical of property management). A listing agent is a special (limited) agent for one transaction.

Question 8

Which statement about agency disclosure in Arkansas is correct?

Accepted Answer

17 CAR 220-801 and 220-802 require written disclosure in all cases. It may begin orally and be reduced to writing before the signing. AREC's brochure is optional.

Question 9

Does a listing agent breach a duty to the seller by showing other sellers' properties to a buyer?

Accepted Answer

Section 17-42-317 states that showing alternative properties to prospective buyers, or acting for other sellers, does not breach a duty to the seller.

Question 10

During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

Accepted Answer

Agents are not inspectors, but must recognize red flags (stains, odors, cracks) and disclose them for further investigation.

Question 11

An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

Accepted Answer

Stating unverified facts that prove false is negligent misrepresentation; knowingly false statements are fraud. Puffing is opinion, not a verifiable fact.

Question 12

A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

Accepted Answer

Latent (hidden) defects known to the seller or agent must be disclosed; failing to do so can create liability for both.

Question 13

Clients who consent to dual agency may contractually waive the duty of absolute fidelity

Accepted Answer

17 CAR 220-803 permits this limited contractual waiver, unless disclosure is required by law or authorized by the client in writing.

Question 14

Which statement about dual agency is correct?

Accepted Answer

Dual agency creates an inherent conflict; with informed written consent, the agent provides limited representation and must keep each party's confidences.

Question 15

An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

Accepted Answer

Conditioning one service on the purchase of another is a tying arrangement prohibited by antitrust law.

Question 16

Which of the following is a fiduciary duty an agent owes the principal?

Accepted Answer

Fiduciary duties are Confidentiality, Obedience, Accounting, Loyalty and Disclosure (COALD), plus reasonable care.

Question 17

A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

Accepted Answer

Implied agency arises from conduct; the agent then owes full fiduciary duties. Express agency is created by stated agreement, ideally in writing.

Question 18

A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

Accepted Answer

Any personal or financial interest of the agent or family must be disclosed up front so the client can make an informed decision.

Question 19

A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

Accepted Answer

The duty of confidentiality bars disclosing information, like the seller's lowest acceptable price, that would harm the client's bargaining position.

Question 20

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 21

A licensee who fails to make agency disclosure in the required time and manner is subject to

Accepted Answer

17 CAR 220-804 makes the licensee subject to the full range of §17-42-312 sanctions.

Question 22

A buyer offers a dual agent a $1,000 bonus paid directly at closing. The dual agent

Accepted Answer

17 CAR 220-803(b) and §17-42-311(a)(8) bar accepting compensation from anyone other than the principal broker.

Question 23

A buyer's agent's client wants to make an offer on a home already under contract. The buyer's agent must

Accepted Answer

Section 17-42-318 requires the buyer's agent to present the buyer's offers to the seller or seller's agent even when the property is under contract.

Question 24

Which act breaches a listing agent's duty under §17-42-316?

Accepted Answer

Section 17-42-316(b)(2) bars disclosing confidential information to a licensee who is not the client's agent. Recommending expert advice and presenting offers are required duties.

Question 25

For a licensee to act as a dual agent, AREC rules require

Accepted Answer

17 CAR 220-803 requires disclosures and written consent from all parties before or at signing.

Arkansas real estate agency practice test

1. A seller instructs the listing agent not to tell buyers about a known, unrepaired roof leak. Under §17-42-316, the agent

2. The best way to create an agency relationship is a(n):

3. A seller instructs her listing agent not to show the home to buyers of a certain national origin. The agent should:

4. The fiduciary duty that requires an agent to safeguard and account for all money and property received on behalf of the client is:

5. Under AREC rules, who must sign an offer that a buyer's agent receives from a buyer?

6. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

7. A property manager authorized to collect rents, sign leases, hire contractors and run the owner's buildings on an ongoing basis is typically a:

8. Which statement about agency disclosure in Arkansas is correct?

9. Does a listing agent breach a duty to the seller by showing other sellers' properties to a buyer?

10. During a listing walk-through, the agent notices fresh paint on one ceiling area and a musty odor. The agent should:

11. An agent advertises a home as having a 'new roof' without verifying it; the roof is actually 18 years old. This is:

12. A seller knows that the basement flooded last spring, but the damage was repaired and is not visible. The seller and listing agent must:

13. Clients who consent to dual agency may contractually waive the duty of absolute fidelity

14. Which statement about dual agency is correct?

15. An agent tells a buyer he will show homes only if the buyer uses the agent's brother as mortgage broker. This is an illegal:

16. Which of the following is a fiduciary duty an agent owes the principal?

17. A licensee never signs a buyer agreement but repeatedly gives a buyer negotiating advice and acts on his behalf. An agency relationship may have been created by:

18. A buyer's agent's brother owns a home that fits the buyer's needs. Before showing it, the agent must:

19. A listing agent knows the seller will accept $20,000 less than list price. A buyer asks, 'Will they take less?' The agent should:

20. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

21. A licensee who fails to make agency disclosure in the required time and manner is subject to

22. A buyer offers a dual agent a $1,000 bonus paid directly at closing. The dual agent

23. A buyer's agent's client wants to make an offer on a home already under contract. The buyer's agent must

24. Which act breaches a listing agent's duty under §17-42-316?

25. For a licensee to act as a dual agent, AREC rules require

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