Free Arkansas State Law Practice Test — LicenseIQ

Question 1

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 2

A licensee learns that a prospective seller already has an exclusive listing with another firm. Before entering into a listing, the licensee must confirm with the other broker and

Accepted Answer

17 CAR 220-1012 requires confirming with the other broker and, if an exclusive agreement exists, giving the client written notice to consult an attorney about liability for two commissions.

Question 3

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 4

Three unrelated buyers win Commission awards against the same salesperson of $30,000, $20,000 and $40,000. The salesperson pays nothing and does not appeal. What is the most the Recovery Fund can pay in total?

Accepted Answer

Each violation is capped at $25,000, so the awards become $25,000, $20,000 and $25,000, which total $70,000. That is under the $75,000 per-licensee aggregate. $90,000 ignores the per-violation cap.

Question 5

To transfer an inactivated license to a new principal broker, the licensee must apply, pay the fee and

Accepted Answer

Section 17-42-310(e) requires a statement that the licensee is not taking the prior broker's listings, contracts or records. The former broker's consent is not required.

Question 6

On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

Accepted Answer

Earnest money and loan proceeds are sources of funds that reduce what the buyer must bring, so they are buyer credits.

Question 7

In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

Accepted Answer

The ADA's accessibility rules primarily cover public accommodations and commercial facilities; housing accessibility is governed mainly by the Fair Housing Act.

Question 8

Which is NOT one of the events that makes disbursement of trust funds proper under AREC rules?

Accepted Answer

17 CAR 220-1008 lists events such as rejection or withdrawal of an offer, closing, a written agreement of all parties, interpleader, court order, or reasonable contract interpretation. A verbal instruction from an agent is not on the list.

Question 9

On a closing statement, the purchase price is a:

Accepted Answer

The seller receives the price (credit); the buyer owes it (debit).

Question 10

What happens to a new salesperson who misses the post-licensure education deadline?

Accepted Answer

Section 17-42-307 places the license on inactive status until AREC receives proof of completion. Missing post-licensure education is also a $100 citation offense under §17-42-312(d).

Question 11

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 12

In a life estate, the person who receives the property when the life tenant dies is the:

Accepted Answer

The life tenant has a present interest; the remainderman holds a future interest. If the property returns to the grantor, it is a reversion.

Question 13

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 14

A licensee acting solely for a buyer must disclose that relationship to the seller or seller's agent

Accepted Answer

17 CAR 220-802 requires disclosure at first contact with the seller or seller's agent, and in all cases before the seller signs any offer or lease.

Question 15

A complainant whose complaint was dismissed by the Executive Director without a hearing may appeal to the Commission. The written appeal must be received within

Accepted Answer

Section 17-42-313 requires the appeal within 60 days. The 30-day period in that section is for paying the cost of preparing the record after being notified of the amount.

Question 16

A broker opens a new trust account at a different bank. Under AREC rules, the broker must

Accepted Answer

17 CAR 220-1007 requires the broker to report trust account information to AREC and to report changes immediately.

Question 17

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 18

A salesperson wants to buy a FSBO home for his own investment. He must:

Accepted Answer

A licensee acting as a principal must disclose licensed status, because the licensee has superior knowledge and expertise.

Question 19

Which is the most common and desirable way a real estate sales contract terminates?

Accepted Answer

Contracts ideally end by performance. They can also end by mutual agreement, impossibility, operation of law, or breach.

Question 20

A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

Accepted Answer

Money belonging to others goes into a trust account; depositing it in an operating account is commingling.

Question 21

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 22

A licensee representing the seller who learns the buyer will pay more than the offer must:

Accepted Answer

Loyalty and disclosure require the seller's agent to share material information that benefits the client. The agent owes the buyer-customer no confidentiality.

Question 23

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 24

In a lease, the tenant holds a ____ estate and the landlord holds a ____.

Accepted Answer

The lessee has a leasehold (non-freehold) estate; the lessor retains the leased fee interest plus the reversion.

Question 25

Under the statute of frauds, a real estate sales contract must be:

Accepted Answer

The statute of frauds requires real estate sales contracts to be in writing and signed to be enforceable.

Arkansas real estate state law practice test

1. A broker received a 4.2% commission totaling $12,600. What was the sale price?

2. A licensee learns that a prospective seller already has an exclusive listing with another firm. Before entering into a listing, the licensee must confirm with the other broker and

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

4. Three unrelated buyers win Commission awards against the same salesperson of $30,000, $20,000 and $40,000. The salesperson pays nothing and does not appeal. What is the most the Recovery Fund can pay in total?

5. To transfer an inactivated license to a new principal broker, the licensee must apply, pay the fee and

6. On the buyer's side of the closing statement, the earnest money deposit and the new mortgage loan are both:

7. In real estate, the accessibility requirements of the Americans with Disabilities Act apply mainly to:

8. Which is NOT one of the events that makes disbursement of trust funds proper under AREC rules?

9. On a closing statement, the purchase price is a:

10. What happens to a new salesperson who misses the post-licensure education deadline?

11. Under an open listing, the seller owes a commission to:

12. In a life estate, the person who receives the property when the life tenant dies is the:

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

14. A licensee acting solely for a buyer must disclose that relationship to the seller or seller's agent

15. A complainant whose complaint was dismissed by the Executive Director without a hearing may appeal to the Commission. The written appeal must be received within

16. A broker opens a new trust account at a different bank. Under AREC rules, the broker must

17. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

18. A salesperson wants to buy a FSBO home for his own investment. He must:

19. Which is the most common and desirable way a real estate sales contract terminates?

20. A property manager receives a tenant's security deposit and advance rent. These funds must be deposited in the:

21. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

22. A licensee representing the seller who learns the buyer will pay more than the offer must:

23. When competing brokerages agree to charge the same commission rate, they commit:

24. In a lease, the tenant holds a estate and the landlord holds a .

25. Under the statute of frauds, a real estate sales contract must be:

Sources