Arkansas Real Estate Practice Exam

10 sample questions, with answers explained

Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.

1. 1. An Arkansas licensee advertises the licensee's personally owned rental. What brokerage identification must still appear?

   • AOnly the tenant's preferred mailing address
   • BNo firm identification because the property is personally owned
   • CThe name of the firm with which the licensee is licensedcorrect
   • DOnly the licensee's nickname and personal mobile number

   Why: 17 CAR 220-1004 applies the firm-name requirement even to the licensee's own property. Personal ownership does not create the assumed advertising exemption.

   Practice of real estate

2. 2. An Arkansas applicant's background-check results are still pending. May the applicant sit the licensing exam under 17-42-315?

   • AYes, and passing automatically eliminates the background check
   • BYes, while awaiting the resultscorrect
   • CYes, but only after receiving an unrestricted license first
   • DNo, every result must arrive before the exam is taken

   Why: Arkansas Code 17-42-315 permits sitting the exam while waiting. It does not permit issuance of the license without receipt and approval of both required checks.

   Practice of real estate

3. 3. An Arkansas seller's agent begins asking an unrepresented buyer about negotiating limits. What is the disclosure concern?

   • ADisclosure is needed only after the buyer pays earnest money
   • BThe seller may require secret collection of the buyer's limits
   • CAll buyer financial information becomes public at an open house
   • DSeller-agency disclosure should occur in time to avoid eliciting expected confidencescorrect

   Why: 17 CAR 220-801(a)(1)(B) requires timely seller-agency disclosure to avoid receiving buyer or tenant information expected to remain confidential.

   Agency

4. 4. How do Arkansas's rules presume funds deposited into a broker's trust account should be treated?

   • AAs compensation owed equally to every agent
   • BAs a loan that any other client may use
   • CAs trust fundscorrect
   • DAs the broker's profits unless a buyer objects

   Why: 17 CAR 220-1007 presumes funds in a broker trust account to be trust funds. The account is not an ordinary source of profits or advances to unrelated clients.

   Practice of real estate

5. 5. Arkansas clients consent to dual agency. What does 17-42-316(b)(1)(B) permit them to waive contractually?

   • AThe licensee's primary duty of absolute fidelity under that provisioncorrect
   • BEvery licensing law and every duty of honest dealing
   • CEvery third party's right to receive required disclosures
   • DThe Commission's authority to investigate any violation

   Why: The statute permits the specified contractual waiver by consenting dual-agency clients. That limited authorization is not a waiver of all laws or the regulator's authority.

   Agency

6. 6. An Arkansas seller has not waived the offer-presentation duty. A new offer arrives while the property is under contract. What must the agent do?

   • AAccept it for the seller without consulting the seller
   • BPresent it to the seller in a timely mannercorrect
   • CWait until the existing contract has ended before mentioning it
   • DDestroy it because another contract already exists

   Why: Arkansas Code 17-42-317 requires timely presentation regardless of an existing contract, lease or lease letter of intent. The scenario expressly excludes a waiver of that duty.

   Agency

7. 7. An Arkansas applicant appeals a waiver determination under 17 CAR 220-405(e), rather than the separate nonappealable predetermination response. What governs the appeal?

   • AOnly an oral hearing chosen by the applicant's broker
   • BThe Arkansas Administrative Procedure Actcorrect
   • COnly the local MLS arbitration manual
   • DOnly the examination vendors refund policy

   Why: 17 CAR 220-405(e) subjects a waiver determination appeal to the Arkansas Administrative Procedure Act.

   Practice of real estate

8. 8. The parties select their own Arkansas escrow agent without the principal broker selecting it. Which responsibility distinction does the rule make?

   • AThe funds cease to be trust funds for every purpose
   • BThe principal broker personally guarantees every party-selected agent
   • CThe special broker accountability for a broker-selected agent does not apply to that party-selected agentcorrect
   • DThe agent may automatically pay itself the broker's commission

   Why: 17 CAR 220-1007(g)(1)(E) retains broker responsibility for funds if the broker selected the escrow agent, but not if the parties selected the agent.

   Practice of real estate

9. 9. An Arkansas principal broker is unavailable and will not process an affiliate's transfer. Who bears the fallback notice and document-return duty?

   • AOnly the property buyer
   • BNo one until the old broker agrees
   • CThe transferring licenseecorrect
   • DOnly the new firm's photographer

   Why: 17 CAR 220-705(d) makes the licensee responsible for written termination or transfer notice and return of licensing documents when the principal broker cannot or will not act.

   Practice of real estate

10. 10. An Arkansas applicant obtained a criminal predetermination response before formal application. What happens to the petition and response later?

    • AThey are sent only to the applicant's future clients
    • BThey must be destroyed before application
    • CThey replace every formal application requirement
    • DThey are retained and reviewed in the formal application processcorrect

    Why: 17 CAR 220-405(a)(7) requires retaining and reviewing the predetermination petition and response during the formal application process.

    Practice of real estate