Free Arkansas Property Practice Test — LicenseIQ

Question 1

A buyer of a unit in a cooperative receives:

Accepted Answer

In a co-op the corporation owns the building; members own shares and a proprietary lease (personal property). Condominium owners receive a deed.

Question 2

A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

Accepted Answer

Rate = $4,000,000 / $160,000,000 = $0.025 per $1. Total = $240,000 x 0.025 = $6,000; annual = $6,000 / 5 = $1,200.

Question 3

Arkansas real estate licenses expire on

Accepted Answer

17 CAR 220-601 provides that all licenses expire December 31. September 30 is the deadline to file the renewal at the regular fee.

Question 4

Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

Accepted Answer

REALTORS must disclose in writing their licensed status and any interest when buying or selling property for themselves or family.

Question 5

Before managing residential rental property, a licensee must have

Accepted Answer

17 CAR 220-1017 requires a written, current agreement listing duties, authority, fees, accounting, duration and termination, with a copy promptly given to the owner.

Question 6

Which is required for a deed to be valid?

Accepted Answer

A valid deed needs a writing, competent grantor who signs, identifiable grantee, consideration, granting and habendum clauses, legal description, delivery and acceptance. The grantee does not sign; recording is not required for validity.

Question 7

A property manager owes fiduciary duties primarily to the:

Accepted Answer

The property manager is the owner's (general) agent and owes fiduciary duties to the owner, while dealing honestly with tenants.

Question 8

Marketable title means title that is:

Accepted Answer

Marketable title is reasonably free from defects and insurable - not necessarily perfect.

Question 9

Private restrictions placed in a deed by a developer are called:

Accepted Answer

Deed restrictions (covenants, conditions and restrictions) are private controls enforced by owners or associations, not government. Zoning and building codes are public controls.

Question 10

Engaging in unlicensed real estate activity in Arkansas is a

Accepted Answer

Section 17-42-105(d) makes a violation a Class D felony. Separately, the Commission may impose a civil penalty under §17-42-109.

Question 11

Arkansas's interest-on-trust-accounts program for real estate brokers is

Accepted Answer

Sections 17-42-601 and 17-42-603 make participation completely voluntary and direct interest to an AREC-designated Arkansas nonprofit exempt under IRC 501(c)(3).

Question 12

Arkansas real estate applicants must complete a criminal background check through

Accepted Answer

Sections 17-42-302 and 17-42-315 require a state and federal background check through the Arkansas State Police and the Federal Bureau of Investigation.

Question 13

Which instrument is exempt from the Arkansas real property transfer tax?

Accepted Answer

Ark. Code §26-60-102 exempts instruments given solely to secure a debt. Conveyances for consideration over $100 are taxable.

Question 14

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 15

Which of the following is exempt from Arkansas real estate licensing?

Accepted Answer

Resident managers living on the premises and leasing as part of their employment are exempt under §17-42-104. Collecting rent, selling or auctioning for others for compensation is licensed activity.

Question 16

Which deed provides the GREATEST protection to the grantee?

Accepted Answer

A general warranty deed contains the fullest covenants, warranting title against all defects, including those arising before the grantor owned it.

Question 17

Which statement correctly describes the makeup of the Arkansas Real Estate Commission?

Accepted Answer

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.

Question 18

What is the length of a term on the Arkansas Real Estate Commission?

Accepted Answer

Members serve three-year terms running January 1 through December 31 of the third year. Five years is the minimum licensure for licensee members, a different number.

Question 19

Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

Accepted Answer

Certified General appraisers may appraise any property. Certified Residential appraisers are limited to 1-4 unit residential; Licensed Residential to noncomplex 1-4 units under $1 million.

Question 20

Under a land contract (contract for deed), during the payment period the buyer holds:

Accepted Answer

In an installment/land contract the buyer has equitable title and possession; the seller keeps legal title until the final payment.

Question 21

Who may perform an appraisal of real property for a lender?

Accepted Answer

Only licensed or certified appraisers perform appraisals. Licensees may prepare a CMA, which is not an appraisal.

Question 22

Which person may complete the sale of another person's Arkansas home without a real estate license?

Accepted Answer

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.

Question 23

In general, a 'stigmatized' property refers to one:

Accepted Answer

Stigmatized properties are affected by events (crime, death) rather than physical condition; disclosure rules vary by state. (Well-established principle; not detailed in the course.)

Question 24

A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

Accepted Answer

In a gross lease the tenant pays flat rent and the landlord covers taxes, insurance and maintenance; in a net lease the tenant pays some or all of those expenses.

Question 25

A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

Accepted Answer

Annual tax = $312,000 x 0.0225 = $7,020; quarterly = $7,020 / 4 = $1,755.

Arkansas real estate property practice test

1. A buyer of a unit in a cooperative receives:

2. A $4,000,000 sewer project is assessed against properties with a combined assessed value of $160,000,000, payable over 5 years. What is the ANNUAL assessment on a property assessed at $240,000?

3. Arkansas real estate licenses expire on

4. Under the Code of Ethics, a REALTOR who wants to buy a property listed with his own firm must:

5. Before managing residential rental property, a licensee must have

6. Which is required for a deed to be valid?

7. A property manager owes fiduciary duties primarily to the:

8. Marketable title means title that is:

9. Private restrictions placed in a deed by a developer are called:

10. Engaging in unlicensed real estate activity in Arkansas is a

11. Arkansas's interest-on-trust-accounts program for real estate brokers is

12. Arkansas real estate applicants must complete a criminal background check through

13. Which instrument is exempt from the Arkansas real property transfer tax?

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

15. Which of the following is exempt from Arkansas real estate licensing?

16. Which deed provides the GREATEST protection to the grantee?

17. Which statement correctly describes the makeup of the Arkansas Real Estate Commission?

18. What is the length of a term on the Arkansas Real Estate Commission?

19. Which appraiser credential allows appraisal of any type of property, residential or commercial, without a value limit?

20. Under a land contract (contract for deed), during the payment period the buyer holds:

21. Who may perform an appraisal of real property for a lender?

22. Which person may complete the sale of another person's Arkansas home without a real estate license?

23. In general, a 'stigmatized' property refers to one:

24. A lease in which the tenant pays a fixed rent and the landlord pays all property expenses is a:

25. A home is assessed at $312,000 with a tax rate of 2.25%. What is the QUARTERLY tax payment?

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