CE Shop Arkansas Practice Test
A person performing real estate activities under the judgment or order of an Arkansas court, such as a trustee in a bankruptcy, is ______. A. An exception to the real estate licensing requirement B. Required to have a broker license C. Required to have at least an associate broker license D. Required to have at least a salesperson license
A. An exception to the real estate licensing requirement This is one of the specific circumstances when licensure is not required.
To whom must Junior, a salesperson in Ozark, provide agency disclosures prior to entering into an agency agreement? A. Any party B. Buyers C. Sellers D. Tenants
A. Any party
The commission has requested that Samuel, a broker in Vilonia, produce evidence that all the forms he uses were ______. A. Approved by a licensed Arkansas attorney prior to use B. Leveraged from another state C. Proofread thoroughly and contain no typos D. Written by the firm's principal broker
A. Approved by a licensed Arkansas attorney prior to use
General brokerage and listing-specific advertising and signage in Arkansas must contain which of these? A. Brokerage name B. License number of listing licensee C. Physical address of brokerage firm D. Supervising broker's name
A. Brokerage name
Hanna is an Arkansas licensee who represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency
A. Buyer agency
Which of the following is NOT a primary function of the Arkansas Real Estate Commission? A. Calculating property values B. Investigating complaints against licensees C. Managing real estate education requirements D. Reviewing licensing applicants
A. Calculating property values
Lucas is a licensee in Hot Springs who is the executor for a property which he has listed himself. What action does the law require Lucas to take for this transaction? A. Disclose his personal interest in the sale. B. Have his fellow licensee process the sale transaction. C. Let his principal broker handle the deal. D. Not collect a commission for the sale.
A. Disclose his personal interest in the sale.
The commission wouldn't require a report for which of the following incidents? A. Freya received a citation for failing to wear her seat belt while driving. B. Laurie was convicted of larceny. C. Lynda pleaded no contest to a smuggling charge. D. Orion pleaded guilty to an aggravated assault charge.
A. Freya received a citation for failing to wear her seat belt while driving.
Which of the following is NOT a likely result of being found guilty of a license law violation? A. Gaining more clients B. Less ability to grow your business C. Penalties from the commission D. Tarnishing your professional reputation
A. Gaining more clients
Jim has bought and sold several of his own properties in Fayetteville and is considering getting his salesperson's license, but first, he'll need to successfully pass the pre-licensing education requirements. Who or what entity sets the real estate education requirements for all Arkansas licensees? A. The Arkansas Real Estate Commission (AREC) B. The Arkansas Real Estate Commission executive director C. The Arkansas REALTORS® Association D. The National Association of REALTORS®
A. The Arkansas Real Estate Commission (AREC)
Which of the following is NOT a status option for an Arkansas real estate license? A. Active B. Affiliated C. Inactive D. Unassigned
B. Affiliated Until an applicant finds a broker with whom to affiliate, her license will be issued an "unassigned" status. Other statuses include active, inactive, and referral.
Seller Ahmed wants to waive some of the duties his Arkansas real estate agent owes him. How can he do this? A. Ahmed and his agent must make the waiver of duties statement part of the purchase contract. B. Ahmed and the agent must make the waiver of duties statement part of their agency agreement. C. Ahmed must tell his agent at some point during their relationship. D. Ahmed must tell his agent at the beginning of their relationship.
B. Ahmed and the agent must make the waiver of duties statement part of their agency agreement.
To which entity should brokers in Arkansas provide trust account status change details? A. Arkansas Office of the Treasury B. Arkansas Real Estate Commission C. Internal Revenue Service D. NAR
B. Arkansas Real Estate Commission Brokers should provide trust account details to the Arkansas Real Estate Commission.
A(n) _____ is a process used to determine the potential selling price of a property that is performed by a sales agent who's hired by a financial institution. A. Appraisal B. Broker price opinion C. Comparative market analysis D. Price estimate
B. Broker price opinion
The commission has finished investigating a complaint against a broker in Little Rock. The next step is for the _____ to either dismiss the complaint or schedule a disciplinary hearing. A. Commission B. Consumer representative C. Executive director D. Vice president
C. Executive director Once an investigation is completed, the commission's executive director may either dismiss the complaint (if nothing could be proven in a hearing) or schedule a disciplinary hearing.
Which of these advertisements would be compliant with Arkansas license law? A. Adam's ad states he is a member of NAR, even though he hasn't finished his membership application yet. B. Jodie's ad for a property listed with her brokerage includes just her individual name and phone number. C. Paul's ad discloses his license status and his brokerage firm's name. D. Zoe's ad shows a different brokerage name than the one on her broker's registered business license.
C. Paul's ad discloses his license status and his brokerage firm's name.
Which of the following duties may an unlicensed person in Arkansas perform when receiving compensation? A. Negotiating the exchange of real estate B. Negotiating the sale or exchange of lots or parcels of land C. Performing bookkeeping and accounting duties D. Selling or offering to sell real estate
C. Performing bookkeeping and accounting duties
Orla represents the seller, and Pardeep, an agent from a different Arkansas real estate firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency
C. Seller agency
A licensee represents ______ in a buyer agency relationship. A. Both the landlord and the tenant B. Both the seller and the buyer C. The buyer or tenant D. The seller or landlord
C. The buyer or tenant
Raymond wants to comply with Arkansas law, so he always retains records related to a transaction for at least _____. A. Five years B. Seven years C. Three years D. Two years
C. Three years State law requires licensees to keep all transaction documents, listing agreements, sales contracts, etc., for three years.
What's the purpose of the initial agency disclosure in Arkansas? A. To define the terms of a listing agreement or exclusive buyer agency agreement B. To define the terms of the listing agreement C. To describe the legal relationship between a broker and a consumer when the broker serves as the consumer's agent D. To explain the consumer's contractual obligations to the agent
C. To describe the legal relationship between a broker and a consumer when the broker serves as the consumer's agent
Which of these statements describes the purpose of agency disclosures in Arkansas? A. To advertise the services of a brokerage B. To compete effectively with other brokerages C. To protect consumers by keeping them informed D. To protect licensees from liability
C. To protect consumers by keeping them informed
What is vicarious liability as it applies to real estate in Arkansas? A. When a broker commits an illegal act. B. When a broker directs a licensee to commit an illegal act C. When a broker is held responsible for the actions or omissions of their licensees. D. When one licensee witnesses another licensee's misconduct.
C. When a broker is held responsible for the actions or omissions of their licensees.
All real estate license law for the state of Arkansas is contained in what chapter of the Arkansas Code? A. 17 B. 24 C. 30 D. 42
D. 42 All real estate license law is contained in Chapter 42 of the Arkansas Code. This chapter documents all the rules that Arkansas licensees must obey when working in the real estate industry.
Arkansas law requires licensees to disclose personal interest before acting on their own behalf or on behalf of certain individuals with whom they have a personal relationship. Which of the following must Jose disclose to a buyer client when writing up an offer? A. He knows the other party to the transaction because he lives in the neighborhood. B. He's helping an acquaintance write an offer on the same house. C. He's told his former college roommate about the house, and he may make an offer. D. His mom is the seller.
D. His mom is the seller.
Dennis is a broker in Rogers who wants to open a branch office location in Prairie Creek. What does he need to do to open a branch office? A. Appear before the commission to make the branch office request. B. Appear before the judge to make the branch office request C. Franchise the brokerage. D. Obtain a duplicate branch office license.
D. Obtain a duplicate branch office license. If a principal broker maintains a branch office, a duplicate principal broker's license is required for each permanent branch office and must be displayed in the branch office.
What is part of the transaction records? A. Accounting for all funds B. Copies of all checks received C. Dated receipts and acknowledgment of checks returned to a client D. Sales contracts
D. Sales contracts Sales contracts are part of the transactional records brokers should keep on file.
Which of the following is an example of commingling? A. Broker Bob accepts an earnest money check, signs it, and uses the funds to pay for his anniversary dinner. B. License holder, Terri, forgets to turn an earnest money deposit over to her broker. C. Maurice places advance rent from his client's tenant into a trust fund account. D. Sandy doesn't want to leave her client's earnest money check laying about, so she places it into her own checking account until the banks open Monday.
D. Sandy doesn't want to leave her client's earnest money check laying about, so she places it into her own checking account until the banks open Monday.
In Arkansas, who has an obligation to be knowledgeable about the real estate market conditions and property pricing for the seller client? A. Buyer B. Buyer's agent C. Seller D. Seller's agent
D. Seller's agent
If a seller client chooses to waive some or all of the duties that an agent is required by Arkansas law to provide, what must be done? A. All parties must complete and sign a waiver of duties statement. B. Duties can't be waived in Arkansas, so there is nothing to do in this situation. C. The agent must submit a request to the Arkansas Real Estate Commission. D. The client must submit a request to the Arkansas Real Estate Commission.
A. All parties must complete and sign a waiver of duties statement.
What is the maximum amount that a person can receive from the Arkansas Real Estate Recovery Fund? A. $15,000 B. $25,000 C. $40,000 D. $5,000
B. $25,000
Gina works for a brokerage in Little Rock, and a lender asks her to provide a professional opinion on how much a local property is worth. Once she conducts her research and provides her estimate, what term is she allowed to use to describe her findings? A. Appraisal B. Appraised value C. Broker price opinion D. Market value
C. Broker price opinion
Which option is of the most concern to Arkansas licensees and advertising when it comes to the Federal Trade Commission? A. Excessive advertising costs B. Location of ads C. Misleading ads D. Paper waste
C. Misleading ads
Providing relevant reports to the property owner on a regular basis is one of a property manager's _______. A. Least important tasks B. Optional projects C. Primary obligations D. Prohibited practices
C. Primary obligations
How soon after a possible license law violation is committed must a complaint be filed with the Arkansas Real Estate Commission? A. Within five years of the alleged act B. Within one year of the alleged act C. Within three years of the alleged act D. Within two years of the alleged act
C. Within three years of the alleged act Complaints must be received within three years of the alleged violation.
Licenses that aren't renewed by the deadline each year are _____. A. Active B. Expired C. Revoked D. Transferred
B. Expired
If you (as an Arkansas licensee) represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency
D. Single-licensee dual agency
Arkansas escrow agent Norman received the earnest money deposit from his clients Bud and Barbara on Friday, January 6, the day the contract was signed by both parties. He must deposit the earnest money by the end of what day? A. Friday, January 13 B. Friday, January 6 C. Monday, January 9 D. Tuesday, January 10
D. Tuesday, January 10 The escrow agent is required to deposit earnest money within three business days after the contract has been signed by both parties unless the parties have come to agreement of a different deadline.
Brady is a new real estate licensee in Arkansas. If you were advising him, you'd tell him that membership in NAR—or any of its state/local associations—is _____________. A. Exclusive B. Free C. Required D. Voluntary
D. Voluntary
Monica's business is booming. She's an Arkansas licensee representing an owner who's selling a $500,000 home on one side of town, and a buyer who's purchasing a $300,000 property on the other side of town. As it happens, the seller and buyer both know each other from church and have been talking to others about Monica's talents, which has brought in several new leads for her to pursue. What type of agency relationship does Monica have with the seller and buyer? A. She is each party's agent. B. She's a dual agent, since the seller and buyer know each other. C. She's the buyer's agent and the seller's sub-agent. D. She's the seller's agent and the buyer's sub-agent.
A. She is each party's agent.
Faith is a new salesperson who is meeting her first soon-to-be client this afternoon to sign the listing agreement. Her principal broker will meet with her to review the contract first. What will her broker say about the duration of the contract? A. All Arkansas listing and buyer agreements must include an expiration date. B. Arkansas contracts renew automatically every two years. C. Arkansas listing agreements automatically expire after six months. D. Contracts in Arkansas do not have a specific duration.
A. All Arkansas listing and buyer agreements must include an expiration date.
Which of the following statements is true regarding the expiration date of a written sales contract in Arkansas? A. All Arkansas sales contracts must include an expiration date. B. All contracts are automatically renewed each year. C. No expiration date is required. D. The expiration date must be within 60 days of execution.
A. All Arkansas sales contracts must include an expiration date.
A principal broker for a brokerage firm in Little Rock is transferring to a new firm. Which of the following is NOT one of the options available to the firm? A. Allowing an affiliated salesperson to temporarily step in and act as principal broker B. Closing the business immediately C. Finding another principal broker replacement immediately D. Requesting the commission to allow the firm to operate temporarily without a principal broker
A. Allowing an affiliated salesperson to temporarily step in and act as principal broker
Seller Amy wants Arkansas licensee Kevin to represent her as a listing agent, and she wants to waive some agency duties. How can she do this? A. Amy and Kevin must make the waiver of duties statement part of their agency agreement. B. Amy and Kevin must make the waiver of duties statement part of the purchase contract. C. Amy must tell Kevin at some point during their relationship. D. Amy must tell Kevin at the beginning of their relationship.
A. Amy and Kevin must make the waiver of duties statement part of their agency agreement.
All of the following can be found in an Arkansas property management agreement EXCEPT ______. A. Contact information for the tenant B. The address of the property that is being managed C. The duration of the agreement D. The property manager's compensation terms
A. Contact information for the tenant
Determine which of these is an example of commingling under Arkansas Commission regulations. A. Cynthia deposited her client's earnest money check into the firm's operating account. B. Jenson deposited his client's earnest money check into the firm's trust account. C. Jessica deposited her commission check into her brokerage firm's operating account. D. Sean withdrew funds from the firm's trust account to pay the rent.
A. Cynthia deposited her client's earnest money check into the firm's operating account.
Savannah wants to purchase a home her brokerage has listed in Arkadelphia. What must she do? A. Disclose her licensed status to all parties, including the seller. B. Notify her principal broker and receive the principal broker's written permission. C. Notify the seller and the seller's agent in writing. D. Notify the seller's agent and lender in writing.
A. Disclose her licensed status to all parties, including the seller.
Randall is an agent representing Charlie, the seller. He is approached by Tina, a buyer who is interested in purchasing Charlie's home, to act as her agent. What actions must Randall take before becoming Tina's agent? A. Obtain written, informed consent from both Charlie and Tina B. Obtain written, informed consent from Charlie only C. Obtain written, informed consent from the broker D. Obtain written, informed consent from Tina only
A. Obtain written, informed consent from both Charlie and Tina
What must a licensee do prior to acting as a dual agent? A. Obtain written, informed consent from both the buyer and the seller. B. Obtain written, informed consent from the broker only. C. Obtain written, informed consent from the buyer only. D. Obtain written, informed consent from the seller only.
A. Obtain written, informed consent from both the buyer and the seller.
Any amendments or supplements to a time-share registration must be reported to the commission within _____ days of the change. A. 30 B. 45 C. 60 D. 90
B. 45 If any amendments or supplements are made to the registration, they should be reported to the commission within 45 days of the change.
Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent
B. A dual agent
In Arkansas, which of the following is an example of self-dealing? A. A licensee lists his property with another firm and sells his home without informing buyers of his license status. B. A licensee purchases a listing through his cousin but does not inform the seller. C. A licensee purchases a property for personal profit. D. A licensee sells a property for personal profit.
B. A licensee purchases a listing through his cousin but does not inform the seller. In Arkansas, illegal self-dealing is having an undisclosed personal interest in a transaction.
In Arkansas, the property management ______ cements the agency relationship between the property manager and the owner. A. Addendum B. Agreement C. Lease D. Waiver
B. Agreement
Which one of the following positions has authority equal to that of a principal broker? A. An administrative assistant B. An executive broker C. An office manager D. A salesperson
B. An executive broker Principal brokers in Arkansas may choose to add a designated executive broker to the staff, but the commission needs to be notified. Both executive and principal brokers have a broker's license, however, the principal broker has the final authority.
Which entity provides oversight for real estate transactions and regulations, including recordkeeping in Arkansas? A. Arkansas Department of Treasury B. Arkansas Real Estate Commission C. Generally Accepted Accounting Society D. Trust Fund Bureau
B. Arkansas Real Estate Commission
Who is permitted to make complaints against Arkansas licensees? A. Anyone B. Clients and customers of licensees C. Other licensees D. Principal brokers
A. Anyone
Adrianna lives in New York and works as a licensed salesperson. She wants to practice real estate in Arkansas. What kind of license should Adrianna apply for? A. Non-resident associate broker B. Non-resident salesperson C. Resident broker D. Resident salesperson
B. Non-resident salesperson
Alexi signed a time-share purchase contract on the Wednesday before Memorial Day weekend. What is the last day he can possibly submit a cancellation notice to the seller? A. On Memorial Day B. The day after Memorial Day C. The day before Memorial Day D. The Friday before Memorial Day
B. The day after Memorial Day Since the fifth day after the signing of the contract is a holiday (Memorial Day), Alexi has until the following day to submit his cancellation notice.
Owner Fred is looking for information about what his property manager's duties are to him (specifically, what kinds of reports the property manager is planning on sending to him). What document should Fred look in for this information? A. The listing agreement B. The property management agreement C. The residential lease document D. The tenant agreement
B. The property management agreement
Michael's an Arkansas salesperson who plans to keep his license active next year. He submitted his complete renewal application to AREC prior to September 30. How much did he pay in renewal application fees? A. Nothing B. The renewal license amount for a salesperson C. The renewal license amount for a salesperson plus an additional late fee D. Triple the amount of the regular renewal fee
B. The renewal license amount for a salesperson
In a buyer agency relationship, what is the seller's relationship to the licensee? A. The seller is the licensee's client. B. The seller is the licensee's customer. C. The seller is the licensee's fiduciary. D. The seller is the licensee's nemesis.
B. The seller is the licensee's customer.
If you're selling your personal real estate, which of the following is true of any advertisements that you produce? A. They must appear as any other listing's ad and not include anything about you or your status as a licensee. B. They must clearly state your status as an Arkansas licensee. C. They must contain the words "principal transaction" in the title. D. They must include your photo.
B. They must clearly state your status as an Arkansas licensee.
Buyer Alison wants to waive some of the duties her agent, Huck, owes her. Which of the following duties can Alison waive under Arkansas law? A. Disclosing material facts about the transaction B. Duties required under § 17-42-317 or § 17-42-318 if the client signs a waiver of duties statement C. Following Alison's legal instructions D. Presenting offers to the seller or seller's agent in a timely manner
B. Duties required under § 17-42-317 or § 17-42-318 if the client signs a waiver of duties statement
AREC has determined Mateo is in violation of Arkansas' license law. Which of the following are possible disciplinary actions that may be imposed on him as a result of the license law violation? A. Education, damages, or suspension B. Education, suspension, or imprisonment C. Fines, education, or community service D. Imprisonment, fines, or community service
B. Education, suspension, or imprisonment
Which of these tasks must an Arkansas licensee perform for her buyer client? A. Advise the buyer on how to get the seller to come down on the asking price. B. Ensure that the buyer receives copies of all signed paperwork. C. Explain to the buyer how to deposit the earnest money into the seller's personal checking account. D. Explain to the buyer that there's really no need to review transaction documents because they're all standard.
B. Ensure that the buyer receives copies of all signed paperwork.
Any offers Aki receives from her buyer client must be presented to the listing firm ______. A. As soon as possible B. By the seller directly C. No later than the close of the next business day D. Within one week of being received
C. No later than the close of the next business day In Arkansas, any offers the selling licensee receives must be presented to the listing firm not later than the close of the next business day.
You're an Arkansas licensee representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? A. No, because agents can't share information with their clients. B. No, because it's hearsay. C. No, because you can't share one client's confidential information with another client. D. Yes, because Ben is your client and has a right to know.
C. No, because you can't share one client's confidential information with another client.
As a licensee, you'll have several tasks you must perform for your buyer client. One of these tasks is to ______. A. Coach the buyer on how to negotiate the terms of the sales contract to be completed in the buyer's favor. B. Explain to the buyer why it's unnecessary to have a professional inspection done on a new home. C. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license. D. Show properties the buyer might qualify for if he would put down more earnest money.
C. Review transaction documents with the buyer, clarifying anything that could be confusing, without stepping outside the scope of your license.
Licensee Kent has an exclusive written agreement with June, his landlord client. What type of agency relationship do they have? A. Buyer agency B. Illegal C. Seller agency D. Sub-agency
C. Seller agency
Thor is helping his client, Jane, search for a property to buy in Siloam Springs. Thanos is representing his seller client, Odin, who owns the house Jane would like to make an offer on. In this scenario, who has the obligation to be knowledgeable about the real estate market conditions and property pricing for the seller client? A. Jane B. Odin C. Thanos D. Thor
C. Thanos
Madeara's been notified that her records are being examined. What entity is responsible for performing the examination of records to ensure her firm's in compliance with Arkansas regulations? A. The Arkansas Association of REALTORS® B. The Arkansas Department of Revenue C. The Arkansas Real Estate Commission D. The Department of Justice
C. The Arkansas Real Estate Commission
Which laws enforced by the commission apply specifically to developers and agents of developers? A. Arkansas Real Estate License Law B. Commission Regulations C. The Arkansas Time-Share Act D. The National Association of REALTORS® Code of Ethics
C. The Arkansas Time-Share Act Outside of enforcing license law, the Arkansas Real Estate Commission is also charged with enforcing the Arkansas Time-Share Act, which applies to developers and their agents.
The Arkansas Real Estate Commission dismissed a complaint without a hearing. What action can the complainant take? A. The complainant can re-file the complaint to force a hearing. B. The complainant can submit a written appeal to the commission within 60 days of the date the complaint was filed. C. The complainant can submit a written appeal to the commission within 60 days of the dismissal. D. The complainant has no other course of action.
C. The complainant can submit a written appeal to the commission within 60 days of the dismissal.
Carlton, a salesperson, received escrow money for a transaction the day the contract had been signed by both parties. By Arkansas law, within how many days must the funds be deposited into the firm's trust account if Carlton's clients agreed his broker will manage escrow? A. 10 days B. Five days C. Three days D. Two days
C. Three days
In Arkansas, the minimum length of time you should maintain copies of transactional documents is _____. A. Five years B. Seven years C. Three years D. Two years
C. Three years
Raymond, a licensee in Russellville, wants to be sure to comply with Arkansas law, so he always retains records related to a transaction for at least _____. A. Five years B. Seven years C. Three years D. Two years
C. Three years
What is the primary purpose of a BPO? A. To help buyers determine how much to offer for a property. B. To help insurers determine the amount of liability insurance to place on a property. C. To help lenders determine the potential sales price for a property. D. To help sellers determine an appropriate listing price.
C. To help lenders determine the potential sales price for a property.
What is the primary purpose of a BPO? A. To help buyers determine how much to offer for a property. B. To help insurers determine the amount of liability insurance to place on a property. C. To help lenders determine the potential sales price for a property. D. To help sellers determine an appropriate listing price.
C. To help lenders determine the potential sales price for a property. BPOs help lenders to determine the approximate value of a property without paying for a full appraisal. Typically a financial institution will request a BPO when an appraisal would be unnecessary or time consuming.
Nathan is placing a listing ad for a soon-to-be-built expensive home in a gated community in Blytheville. He includes the words "exclusive" and "ultra-conservative community" in his ad. Is he in danger of violating Fair Housing Law? A. No, as long as the developers have used the same terms to describe the development. B. No, because the terms are a true characterization of the neighborhood and the property C. Yes, because it implies that the listing is suitable only for a particular type of buyer. D. Yes, unless the developers specified that he use these terms in all marketing tools.
C. Yes, because it implies that the listing is suitable only for a particular type of buyer.
Leon received a cancellation notice from a couple he'd helped sign a timeshare purchase contract two days ago. How should Leon respond? A. He doesn't need to respond, as the cancellation request isn't valid. B. He should call the couple and let them know that the contract is final and they cannot cancel. C. He should send an acknowledgment letter to the couple within seven days but keep their deposit. D. He should send both a written acknowledgement letter and the couple's deposit back within 30 days.
D. He should send both a written acknowledgement letter and the couple's deposit back within 30 days.
Bruce is meeting with his seller client in Ozark to give her a copy of the real estate contract. Prior to their meeting, Bruce's supervising broker Maurice should ______. A. Assign his administrative assistant to review the contract thoroughly B. Obtain a commission member's signature on the contract C. Remind Bruce that he will need to sign the contract after closing D. Review and sign the real estate contract before it is submitted to the seller
D. Review and sign the real estate contract before it is submitted to the seller
If the Arkansas Real Estate Commission finds a licensee guilty of not disclosing agency relationship options for all real estate transactions, it has the authority to issue a fine, require additional education, and ______. A. Impose community service requirements B. Order jail time C. Refer the case to the state attorney for criminal prosecution D. Revoke or suspend a licensee's license
D. Revoke or suspend a licensee's license
Charlotte is selling her farm in Lowell. What responsibility does her selling agent, Oliver, have to her? A. Advocate for and ensure the sale is profitable for Charlotte. B. Advocate for Charlotte and help present the property in the best light, even if it means covering up material defects. C. Ensure the sale is profitable for Charlotte. D. Seek a sale at the best price at terms acceptable to Charlotte.
D. Seek a sale at the best price at terms acceptable to Charlotte.
Bernie is creating a promotion for some new timeshare units he's developing in Centerton. What information is he NOT required to include in his ad? A. Disclosure that the promotion is being used to sell timeshare units B. The approximate retail value of any prizes he may offer as part of his promotion C. The complete rules of the promotion D. The names of previous promotion winners
D. The names of previous promotion winners
You used REALTOR® on your business card although your membership in NAR expired last year and you didn't renew it. Under Arkansas law, what type of violation is this? A. Exerting undue influence B. Failure to supervise C. Undisclosed compensation D. Untruthful advertising
D. Untruthful advertising This is an example of misleading or untruthful advertising.
Luigi just submitted his application to become a member of a regional professional trade organization. Since he knows he will be accepted soon, he starts adding the organization's insignia to his advertisements. Luigi is _____. A. Allowed to do this if his principal broker gives him permission to do so B. Being proactive and doing what he needs to do in order to gain credibility C. Setting a positive example to other licensees at his firm D. Violating Arkansas real estate license law
D. Violating Arkansas real estate license law
Which of the following statements is true about trust account disbursements in Arkansas? A. Any brokerage firm employee can make disbursements from a client trust account. B. The buyer client can make disbursements from their trust account. C. Trust account fund disbursements are solely for closing costs. D. When disbursement changes are made outside the sales contract, all parties must be notified in writing.
D. When disbursement changes are made outside the sales contract, all parties must be notified in writing.
Sari, a licensee for Tynan Realty in Cabot, is placing a listing ad in The Presbyterian Outlook. Is this a potential fair housing violation? A. No, because Sari and the sellers are Presbyterian. B. No, because the seller requested it. C. Yes, because she can't place an ad in religious publications. D. Yes, unless she also places the ad in publications that reach a broader market.
D. Yes, unless she also places the ad in publications that reach a broader market.
A complaint was filed against Josephine, a salesperson in Jonesboro, for making substantial misrepresentations. The commission conducted a disciplinary hearing and determined a violation did occur. They may impose a penalty payment on Josephine in the amount of no more than ______ per violation. A. $100 B. $1,000 C. $250 D. $2,500
B. $1,000
According to Arkansas statutes, licensees acting as principals to a transaction must _____. A. Avoid advertising that they are a licensee B. Disclose their status as a licensee C. Not engage in a transaction with their own principal broker D. Use their skills and knowledge to advocate for themselves in the transaction
B. Disclose their status as a licensee
Evelyn received notice of an AREC audit of her clients' trust account for a sales transaction. Thank goodness she's a stickler for record keeping. Which records are used to produce a monthly reconciliation? A. Journals, bank statements, and reconciliation report B. Journals, check registers, and reconciliation worksheets C. Journals, ledgers, and check registers D. Ledgers, cash receipt books, and reconciliation worksheets
B. Journals, check registers, and reconciliation worksheets
What type of record contains information about all money received and spent related to a property? A. Cash receipt B. Owner ledger C. Property management agreement D. Tenant ledger
B. Owner ledger
In Arkansas, _____ are directly responsible for the supervision and adequate training of salesperson licensees. A. Licensed assistants B. Principal brokers C. Sponsoring brokers D. Supervising brokers
B. Principal brokers Principal brokers supervise and train their affiliate licensees. An executive broker is equally responsible for monitoring licensees when one has been designated.
Which term is used to define anything that's generated or documented as part of Arkansas real estate business? A. Demand B. Record C. Supply D. Transaction
B. Record
In a buyer agency relationship, who does the Arkansas licensee represent? A. Both the seller and the buyer B. The buyer C. The listing firm and the buyer D. The seller
B. The buyer
If you're selling your personal property in Arkansas, which of the following is true of any advertisements that you produce? A. They must appear as any other listing's ad and not include anything about you or your status as a licensee. B. They must clearly state your status as an Arkansas licensee. C. They must contain the words "principal transaction" in the title. D. They must include your photo.
B. They must clearly state your status as an Arkansas licensee.
When acting as a principal to a real estate transaction, which duty is expanded by statute, requiring additional explicit actions for Arkansas licensees? A. Accounting B. Confidentiality C. Disclosure D. Loyalty
C. Disclosure
Little Rock Realty is closing their operations. Louis is the sole principal broker for the firm. What happens to the transaction records from the firm? A. Louis must secure the records in an insured facility designated by the commission. B. Louis will take custody of the records and ensure they are in a secure location. C. Louis will take custody of the records and notify the commission of their storage location. D. Since the firm is closing, it isn't necessary to keep the files.
C. Louis will take custody of the records and notify the commission of their storage location.
Property managers are _______ cash payments from tenants. A. Allowed to accept B. Prohibited from accepting C. Required to accept D. Unable to accept
A. Allowed to accept While not required to do so, property managers are permitted to accept cash payments. However, the property manager must prepare and retain written receipts for any cash funds they receive.
Licensee Jude is representing Christian in the sale of his property in Fort Smith to Roberta, the buyer customer. Which of these statements is true? A. Although Jude has an obligation of absolute fidelity to Christian, this does not relieve him of his obligation of dealing honestly with Roberta. B. Jude has an obligation of absolute fidelity to the interest of his customer, Roberta. C. Jude has been relieved from his obligation of dealing honestly with Roberta because she is not his client. D. Jude is not required to protect and promote the interests of Christian, his client.
A. Although Jude has an obligation of absolute fidelity to Christian, this does not relieve him of his obligation of dealing honestly with Roberta.
The Arkansas Real Estate Commission regulations require ______. A. All contracts to be in writing B. All contracts to have an expiration date C. All licensees to be brokers D. Brokers to provide contractual legal advice
B. All contracts to have an expiration date AREC regulations require that all written contracts must contain a specific definite duration or expiration date.
A temporary interim license is valid for _____ days. A. 10 B. 14 C. 30 D. 60
C. 30
What's one benefit to affiliating with a broker in Arkansas? A. Increased liability B. Lack of administrative support C. Split commission with the broker. D. Training
D. Training
Bruce, a principal broker in Herber Springs, has just finished reconciling his trust account bank statements for the month. How long does Bruce need to keep copies of the reconciliations? A. Four years B. One year C. Three years D. Two years
C. Three years
In Arkansas, complete records of all time-share advertising materials must be maintained for _____. A. One year B. Six months C. Three years D. Two years
C. Three years
Who or what entity funds the Arkansas Real Estate Recovery Fund? A. All Arkansas licensees B. License law violators C. Real estate clients D. The commission
A. All Arkansas licensees
A licensee must submit a formal report to the commission within _____ days of being convicted of a crime or pleading guilty/no contest to a crime. A. 30 B. 45 C. 60 D. 90
A. 30
A cash receipt should contain all of the following information, EXCEPT _____. A. A bank-generated electronic tracking number B. The date and amount of the payment C. The name and signature of the person who prepared the receipt D. The tenant's name
A. A bank-generated electronic tracking number A cash receipt should not contain a tracking number, as the payment would have been made in cash rather than by check or another trackable payment method.
Blythe is signing an agency agreement with her buyer client in Blytheville. Which of the following statements is true regarding the expiration date of her agency agreement? A. A definite expiration date must be included. B. No expiration date is required. C. The expiration date may not be extended. D. The expiration date must be within 60 days of execution.
A. A definite expiration date must be included.
Under what circumstances can a broker in Arkansas be held liable for not supervising a licensee? A. A lawsuit is brought against the broker's licensee due to misconduct. B. The licensee got a traffic ticket while conducting real estate business for the firm. C. The licensee knew that a licensee from another firm had stolen a customer. D. The licensee unintentionally mispriced a property.
A. A lawsuit is brought against the broker's licensee due to misconduct.
Loki is representing clients who want to make an offer on a property in Van Buren. He has ______ or information that may affect the value and desirability of the property, which may affect his client's decision. A. A material fact B. Confidential information C. Public records D. Undisclosed information
A. A material fact
By accepting and depositing earnest money funds, Lucas, an Arkansas principal broker, is agreeing to ______. A. Abide by Arkansas license laws related to trust funds B. Disburse the funds as directed by his client C. Hold the funds in the firm's operating account D. Negotiate directly with the buyer and seller in case of earnest money disputes
A. Abide by Arkansas license laws related to trust funds
The commission is responsible for managing all aspects of real estate education, EXCEPT _____. A. Advertising B. Instructors C. Required course topics D. Requirements
A. Advertising
To avoid penalties from the Arkansas Real Estate Commission, which form must licensees provide to disclose agency relationship options? A. Agency Representation Disclosure form B. Arkansas Real Estate Disclosure form C. Client Representation Disclosure form D. Consumer Agency Disclosure form
A. Agency Representation Disclosure form
Which of these documents provides appropriate agency disclosure? A. Agency Representation Disclosure form B. Consent for Dual Agency form C. Dual Agency Within a Team form D. Understanding Whom Real Estate Agents Represent form
A. Agency Representation Disclosure form
In Arkansas, which of these situations demonstrates illegal dual agency? A. At an open house Thomas is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Thomas waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer. B. Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency. C. Kady's firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings. D. Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi presents Renee's offer to his client.
A. At an open house Thomas is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Thomas waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer.
Jasmine, a salesperson in the firm's Morrilton office, needs someone to perform a contract review before submitting it to her clients. Jack, another salesperson in the office, Marsha, one of the firm's brokers, and Atticus, the office's designated executive broker, are currently in the office. Who should Jasmine have review the contract? A. Atticus B. Jack C. Jasmine should review her own contracts. D. Marsha
A. Atticus
If Harley, a buyer looking at a property in Mena, were given misinformation about the property by Bentley, his buyer agent, who is responsible? A. Bentley B. Harley C. Seller D. Seller's agent
A. Bentley
If Harley, a buyer looking at a property in Mena, were given misinformation about the property by Bentley, his buyer agent, who is responsible? A. Bentley B. Harley C. Seller D. Seller's agent
A. Bentley
In Arkansas, stating or implying that property values may deteriorate because members of a specific class are moving into or out of a neighborhood is called ______. A. Blockbusting B. Commingling C. Redlining D. Steering
A. Blockbusting
In Arkansas, stating or implying that property values may deteriorate because members of a specific class are moving into or out of a neighborhood is called ______. A. Blockbusting B. Commingling C. Redlining D. Steering
A. Blockbusting Blockbusting, or panic selling, is the term used for trying to induce sales by communicating that members of a particular class are moving into or leaving a neighborhood.
Clarence is an Arkansas broker who's performing his monthly trust account reconciliation. He's compared his trust account bank statement balance to the total amounts deposited into the account and the disbursements made. How should these numbers compare? A. His bank statement should match his detailed records of all funds coming into his possession and all disbursements made by him. B. The amount should be larger than the bank balance. C. The amounts should include interest that doesn't show up on the bank statement. D. The amount totaling the deposits and disbursements should be smaller than the bank balance.
A. His bank statement should match his detailed records of all funds coming into his possession and all disbursements made by him.
Angie is a licensed timeshare developer in Arkansas. As she begins the process of submitting her time-share plans and registration, which of the following is NOT correct? A. If she makes any amendments to her registration, she'll have 30 days to inform the commission. B. She must submit an application for all time-share plans to the commission. C. She needs to submit the name, address, and phone number for each agent associated with the time-share plan. D. She will need to pay the commission various registration fees.
A. If she makes any amendments to her registration, she'll have 30 days to inform the commission.
By when must licensees deliver escrow funds to their principal broker in Arkansas? A. Immediately B. Within the next business day of sales contract signing C. Within three business days of the parties signing the contract D. Within two business weeks of receipt
A. Immediately Escrow funds must be delivered to the broker immediately. Once the contract is signed, the broker has three days to deposit them in the firm's trust account, deliver them to an escrow agent, or deposit them according to the parties' agreement.
Wyatt is a licensed broker and an appointed member of the Arkansas Real Estate Commission. All of the following are a part of his duties and responsibilities as a member of the commission EXCEPT ____. A. Investigating complaints against real estate clients B. Issuing licenses to individuals who successfully complete all licensing requirements C. Managing license renewal applications D. Reviewing all real estate licensing applicants
A. Investigating complaints against real estate clients The commission is responsible for reviewing all real estate licensing applicants and issuing licenses to successful applicants. It is also in charge of managing license renewal applications and maintaining data on current licensees.
Jaxon is a salesperson working in Hot Springs. He meant to provide an agency disclosure to Sandra, a consumer, but it completely slipped his mind. Which of the following statements is true? A. Jaxon is in violation of Arkansas license law, and AREC may suspend or revoke his license. B. Jaxon must provide a written statement that there was a good reason for not providing the disclosure. C. Jaxon's broker must provide the disclosure to Sandra as soon as the transaction has closed. D. Sandra will sue Jaxon for $100,000.
A. Jaxon is in violation of Arkansas license law, and AREC may suspend or revoke his license. It is a violation of Arkansas license law for failure to disclose and may result in disciplinary action against the licensee.
In Arkansas, which individual in these scenarios would require a real estate license? A. Joan is searching for a new home for a friend moving into town. After the friend buys a property, Joan will receive 2% of the sales price for her time. B. Marcus is selling his own home and isn't using the services of a listing agent. C. Pat is helping his sister Kristin find a new apartment. He's searching listings and calling property management companies but won't receive anything in return. D. Ron is acting as executor of his uncle's estate, which includes selling his uncle's property.
A. Joan is searching for a new home for a friend moving into town. After the friend buys a property, Joan will receive 2% of the sales price for her time. In general, unlicensed consumers can't perform real estate activities for others for a fee or for compensation of any kind. Exceptions include trustees and executors, or people selling their own property. Joan is receiving compensation and would need to be licensed in order not to break any laws.
Licensee Lilah represents Benjamin, a seller in Hots Springs Village. Lilah's sister is an interested buyer. What must occur? A. Lilah must disclose her relationship with her sister in writing before they enter into a binding agreement. B. Lilah must get her principal broker's permission to participate in the transaction. C. Lilah must set up a "conflict of interest" escrow account. D. No additional disclosure is required.
A. Lilah must disclose her relationship with her sister in writing before they enter into a binding agreement.
Which of the following is a true statement regarding recordkeeping requirements for Arkansas real estate licensees? A. Records are subject to AREC audit. B. Records must be maintained for at least five years. C. Records must be stored electronically. D. Records must be stored in hard copy, off site, in a fireproof filing container.
A. Records are subject to AREC audit.
Kent has knowledge that Brent, another salesperson in the firm, purposefully published a misleading advertisement for a home in West Fork. What does the commission say Kent's duty is in this situation? A. Report it in writing to the commission. B. Report it in writing to their principal broker. C. Speak directly to Brent advising him of the violation. D. Turn Brent into the police.
A. Report it in writing to the commission.
Vladimir is anxious to help his clients find the perfect home in Rogers. He should have mentioned that he suspects the house they decided to purchase has some significant roof damage but in his excitement of the sale, he did not. What would the commission think about Vladimir's actions? A. Vladimir is committing negligent misrepresentation, which violates license laws. B. Vladimir is making a bad business decision but isn't violating any laws. C. Vladimir isn't responsible for disclosing information about the roof; that's what the home inspection is for. D. Vladimir made a professional judgment call to benefit his clients.
A. Vladimir is committing negligent misrepresentation, which violates license laws. Negligent misrepresentation is when a licensee should have known something or could have known something that could hurt or help their client. Failing to inform Vladimir's clients about a property's condition is a violation of license law.
Arkansas sales transaction trust account changes can't be made prior to closing without what? A. Written agreement from both the buyer and seller B. Written permission from the bank's account manager C. Written permission from the designated broker D. Written release from the buyer
A. Written agreement from both the buyer and seller
Which of the following is true about records retention in Arkansas? A. You should maintain all property management records for at least three years. B. You should maintain tax records for no longer than one year. C. You should maintain transactional records for at least five years, and supplementary information for one year. D. You should maintain transactional records for no longer than one year.
A. You should maintain all property management records for at least three years.
A few days ago, Arkansas broker Jessica submitted an offer to her seller client, Sean. He called her this morning to say he's accepting the offer. Woohoo! To stay in compliance with commission rules, what must occur prior to closing? Select the best correct answer. A. A copy of the contract, including any addenda, may be provided to the buyer and seller after closing. B. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing. C. The buyer must receive a copy of the contract, including any addenda, containing all required signatures. D. The seller must receive a copy of the contract, including any addenda, containing all required signatures.
B. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing.
Miranda terminated her affiliation with her firm, East Side Realty. She has been doing deals without a new broker affiliation. Her prior broker Bruce at East Side Realty learned about her actions. What should Bruce do? A. Bruce isn't responsible for taking any action. B. Bruce needs to report Miranda to the Arkansas Real Estate Commission. C. Bruce should contact Miranda and demand her reaffiliation under East Side Realty. D. Bruce should notify the police of Miranda's license violation.
B. Bruce needs to report Miranda to the Arkansas Real Estate Commission.
Gemma's seller client, Hugo, is selling his house in Benton. As Hugo's seller agent, Gemma has several tasks to perform for him. One of these tasks is to ______. A. Advise him on the property conditions he shouldn't disclose to the buyer B. Communicate all offers and counter-offers to the seller C. Disclose to Hugo that if the property doesn't sell within 60 days, the asking price must be lowered D. Ensure an implied agency agreement is in place
B. Communicate all offers and counter-offers to the seller
Jasmine needs to submit a report to the commission regarding a recent conviction. What information does NOT need to be in her report? A. An explanation of circumstances that led to the charge B. Copies of witness testimonies C. Description of the crime D. The fine, penalty, or sanctions imposed
B. Copies of witness testimonies
Who must protect the Ayesha's best interests during the negotiation of a sales contract for her property in Searcy? A. AREC B. Her seller agent C. The buyer D. The buyer's agent
B. Her seller agent
Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her? A. Confidentiality B. Honesty and fairness C. Negotiation of the best price D. Undivided loyalty
B. Honesty and fairness
Arkansas Real Estate Commission regulations require any contract for real property to be ______. A. Implied B. In writing C. Notarized D. Verbal
B. In writing
Even if a violation doesn't go through an investigation and a hearing, the executive director may ______ licensees who commit certain violations. A. Demand payment for damages from B. Issue citations to C. Place restrictions on the real estate practice of D. Revoke licenses of
B. Issue citations to
What is the first thing that must be done after the commission receives a complaint? A. It must begin reviewing the evidence and investigating the complaint. B. It must decide whether the commission has the authority to investigate. C. It must send a copy of the complaint to the licensee in question (the respondent). D. It must start conducting interviews with the complainant, the respondent, and witnesses.
B. It must decide whether the commission has the authority to investigate. Once the commission receives a complaint, it reviews the documentation to determine whether it has the authority to investigate. If the commission can't investigate, the complaint may be dismissed.
Property manager Jack just took on a new client in Rogers. In order to build a good relationship, Jack should ______. A. Ignore state laws in favor of client interests B. Keep the property owner informed C. Make tenant interests his primary concern D. Reply to property owner calls at his leisure
B. Keep the property owner informed
Cami is a property manager for a four-unit property in Bentonville. The property owner asks Cami to maintain an umbrella policy as part of her duties. Cami lets her know this is one of a few tasks she can't handle. Which of the following describes the duty Cami is referring to? A. Handling any home warranties B. Maintaining insurance policies C. Making mortgage payments D. Paying property taxes
B. Maintaining insurance policies
Principal broker Vin just opened a branch office in Mena. What must he do before he opens his doors to the public? A. Hire a receptionist B. Make sure he obtains a duplicate broker license C. Pay the first month's lease D. Put up an "Open For Business' sign
B. Make sure he obtains a duplicate broker license
Arkansas real estate licenses are good for _____ year(s). A. Four B. One C. Three D. Two
B. One
Filed complaint forms may contain _____. A. Any extra details that could provide more context for the complaint B. Only facts pertaining the licensee's alleged misconduct C. Personal opinions of the licensee's character D. Recommendations on disciplinary sanctions that would be appropriate
B. Only facts pertaining the licensee's alleged misconduct To make a complaint, a person must file a complaint form, including facts pertaining to the licensee's alleged misconduct. Complaint forms can be obtained from the Arkansas Real Estate Commission.
In Arkansas, is having a brokerage policy enough to meet a broker's responsibility to supervise? A. Only if it covers every contingency B. Only if it's enforced C. Only if it's generally understood D. Only if it's in writing and communicated
B. Only if it's enforced It's not enough to have a policy; unless it's enforced, a broker isn't meeting his or her responsibility to supervise. Brokers should have receipts of training meetings, details of education provided, etc.
Licensee Paul was found guilty of not disclosing agency relationship options for all real estate transactions. As a result, the Arkansas Real Estate Commission has the authority to impose a fine, revoke or suspend his license, and ______. A. Place Paul on probation and require a letter of accommodation from the licensee's broker B. Require additional education C. Require Paul to serve as an unpaid assistant for one year D. Sentence Paul to community service
B. Require additional education
Which of the following scenarios is considered a violation of FTC advertising rules? A. Marcy just listed the Brown property with the following description: "2,000 square feet of living space for a total of 2,800, including two outbuildings and an unfinished garage." B. Sarah just started her career as a solo agent and decided to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" C. Shelia just closed on the Martin property yesterday. She's taken down all the signs and online listings for it. D. Vickey just posted an MLS listing for the Kennedy property without her principal broker's approval.
B. Sarah just started her career as a solo agent and decided to try a new marketing campaign slogan: "Come let our team of hard-working agents find you the home of your dreams!" While it may seem innocent enough, claiming to be a part of a team when you aren't is misleading and deceptive advertising.
Jane is renewing her broker's license this year. What is the largest amount she may have to pay into the recovery fund when she submits her renewal application? A. $15 B. $20 C. $25 D. $30
C. $25
Jason has been found guilty of fraudulently handling money for several of his clients. Four of his previous clients have been awarded judgments of $15,000, $20,000, $40,000, and $55,000, respectively. What is the maximum total reimbursement that could the Arkansas Real Estate Recovery Fund could pay out for Jason's fraudulent activities? A. $130,000 B. $25,000 C. $75,000 D. $90,000
C. $75,000
What is the Arkansas recovery fund's maximum per-licensee liability? A. $25,000 B. $50,000 C. $75,000 D. $90,000
C. $75,000 The maximum amount of recovery fund licensee liability per transaction is $75,000.
Super Bank of Arkansas wants to determine the approximate selling price of a property in Fort Smith. Who would typically prepare the BPO? A. An appraiser B. An inspector C. A real estate licensee D. The lender
C. A real estate licensee A broker price opinion is usually performed by a hired sales agent when a financial institution believes the expense of ordering an appraisal would be unnecessary and time-consuming.
Which of the following pieces of information is principal broker Ken NOT required to maintain as part of his recordkeeping duties? A. A brokerage client's ultimately unsuccessful sales contract B. A closing statement for a sales transaction C. A record of his past client's credit history D. A record of how a former client's earnest money was disbursed
C. A record of his past client's credit history Ken doesn't have to keep records of past clients' credit histories.
Jennifer is selling her property in Little Rock. She has hired Larry as her agent. After the property is listed, Jane brings her client Andrew to see the property, which Andrew is interested in purchasing. Who is Larry in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent
C. A seller's agent
Which of the following is an Arkansas buyer's agent's task or duty? A. Advocating for the seller B. Negotiating for the seller C. Representing the buyer's interests D. Reviewing transactional documents with the seller
C. Representing the buyer's interests
Which of the following is NOT something the commission has the authority to do to enforce the Arkansas Time-Share Act? A. Amend and repeal rules. B. Impose suspensions against developers. C. Incarcerate developers guilty of violating the act. D. Set fees and penalties.
C. Incarcerate developers guilty of violating the act.
Which of the following is an example of deceptive advertising? A. Including the broker's name in an advertisement B. Including the listing price in an advertisement C. Intentionally misidentifying a property's square footage D. Promptly removing an ad after a transaction closes
C. Intentionally misidentifying a property's square footage
Arkansas licensee Ken is so excited to get his first listing that he can hardly wait to start marketing the property. The owners, Buck and Sally Henson, are coming in tomorrow morning to sign the listing agreement. Ken, whose motto is "No time like the present," immediately put a for sale sign on the Hensons' lawn. Which of the following is true of this situation? A. It's okay for Ken to put up the sign early, as long as he doesn't start formally marketing the property until after the Hensons sign the agreement. B. Ken can do this only with his broker's permission. C. Ken can only place a for sale sign on a property when a listing agreement is in place unless the owner authorizes it. D. Ken is acting within the law and within the scope of his duties.
C. Ken can only place a for sale sign on a property when a listing agreement is in place unless the owner authorizes it.
Listing agents in Arkansas under an agency agreement are expected to have ______ and are expected to be well informed about any material facts that would be important to their clients. A. Appraisal training B. Good faith C. Knowledge of property D. License law education
C. Knowledge of property Listing agents under agreement should have knowledge of property and make a reasonable effort to learn about every property and be well informed of each property's condition and any material facts that would be important to clients.
Doug is buying a house from Julie in Pea Ridge. Doug is represented by Kyle, while Julie is represented by Mark. Jessica is Kyle's principal broker, and Chelsea is Mark's. In addition to both parties, who must sign the sales contract? A. Kyle and Jessica B. Kyle and Mark C. Kyle, Mark, Jessica, and Chelsea D. Mark and Chelsea
C. Kyle, Mark, Jessica, and Chelsea
Arkansas broker, Elios, is required to have all agreements regarding real estate in writing in EXCEPT for which one? A. Closing statements B. Financial obligations C. Non-exclusive agency agreements or contracts D. Real estate contracts
C. Non-exclusive agency agreements or contracts
Which of the following Arkansas licensees are allowed to engage in real estate activities with another broker without their principal or executive broker's permission? A. Associate brokers B. Executive brokers C. None D. Salespersons
C. None
In Arkansas, when may licensed salespersons work independently from their principal or executive brokers? A. At any time B. Never C. Only with the broker's permission D. When the commission allows it.
C. Only with the broker's permission Licensed salespersons in Arkansas must always get permission from their principal broker or executive broker before working independently or with another broker.
Who is responsible for giving final review and approve transactional documents in Arkansas? A. Arkansas Real Estate Commissioner B. Firm office manager C. Principal broker D. Salesperson
C. Principal broker The principal broker must review and approve transactional documents—such as listing agreements, purchase agreements, and closing files—to ensure that they're complete and accurate.
Joe is anxious for his new property manager, Emory, to get started. However, Emory tells Joe that before she can do anything, they have to ______. A. Complete a verbal contract over the phone B. Draw up a tenant agreement C. Sign a property management agreement D. Take a tour of the property that Emory will be managing
C. Sign a property management agreement
Tamron is hosting an open house for a listing in which she represents the seller. During the open house, a buyer customer asks Tamron for her opinion on a real estate-related topic. Tamron provides the buyer with a few pieces of advice. What best describes this situation? A. Tamron acted appropriately during the open house. B. Tamron appropriately displayed her duty of reasonable skill and care to her client. C. Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party. D. Tamron should not have talked to any buyer customers during the open house.
C. Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party. Dual agency can occur unintentionally by the actions an agent takes with both the buyer and seller.
When an Arkansas licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? A. The licensee isn't permitted to list other properties for sale. B. The licensee is permitted to list other properties for sale as long as they're not competing properties. C. The licensee is permitted to list other properties for sale, even if they're competing properties. D. The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties.
C. The licensee is permitted to list other properties for sale, even if they're competing properties.
Arkansas licensee Doug has a client buyer who is extremely interested in buying a property that's for sale in Stuttgart. Doug is aware that another firm holds an exclusive listing contract on the property, but he wants to contact the seller about showing the property to his client. Whose permission must he have to do this? A. AREC B. The buyer C. The listing firm D. The seller
C. The listing firm
Geraldine has just started working as a new property manager for an owner in Fayetteville. Where might she find information on reports the owner wants her to provide? A. The owner ledger B. The property evaluation form C. The property management agreement D. The purchase agreement
C. The property management agreement
Which of these describes self-dealing? A. A licensee lists her own property and informs all parties that she's licensed. B. A licensee sells a property without broker supervision. C. A licensee sells a property with the understanding that she will make all pertinent decisions on her client's behalf. D. A licensee sells her own property for personal use without the knowledge of the principal broker.
D. A licensee sells her own property for personal use without the knowledge of the principal broker.
Which of the following people can hold a broker's license in Arkansas? A. An unlicensed person who petitions the real estate commissioner B. A person with a new real estate license C. A person with one year of experience as a licensee D. A person with two years of experience as a licensee
D. A person with two years of experience as a licensee
Evelyn received notice of an AREC audit of her clients' trust account for a sales transaction. Thank goodness she's a stickler for record keeping. Which records are used to produce a monthly reconciliation? Select the best answer. A. A cash receipt book and two months of bank statements B. A list of all disbursements and copies of monthly reconciliations C. Bank statements and receipts D. Detailed records of all funds coming into the broker's possession, all disbursements the broker made, bank statements, and copies of bank reconciliations
D. Detailed records of all funds coming into the broker's possession, all disbursements the broker made, bank statements, and copies of bank reconciliations
Joe manages several properties for Candice in Hot Springs. In a money pinch, Joe decides to use a tenant's security deposit to pay for some needed maintenance on another unit. Which is true regarding Joe's actions? A. Joe is allowed to use the deposit for other property management fees, as long as he replaces the money within 72 hours. B. Joe is permitted to use the deposit as he deems necessary. C. Joe is prohibited from ever using the deposit for other fees by Arkansas license law. D. Joe may use the deposit to pay for other expenses and fees, if this was specifically allowed by the tenant agreement.
D. Joe may use the deposit to pay for other expenses and fees, if this was specifically allowed by the tenant agreement. Property managers can't take tenants' security deposits and use them to pay for other expenses and fees, unless this is specifically stated and allowed by the tenant agreement.
Which of the following costs is eligible for disbursement from the Arkansas Real Estate Recovery Fund? A. Attorney fees B. Court costs C. Damages for pain and suffering D. Losses directly related to the transaction
D. Losses directly related to the transaction
Of these, which one could be seen as a common real estate violation in Arkansas? A. Before showing a buyer customer his listing, Mitchell explained to the buyers that he represents the sellers. B. Henry provided customers with a copy of their signed broker engagement agreement. C. Isabelle keeps all signed broker engagement agreements in a safe but accessible location in the broker's office. D. Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers.
D. Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers.
Which of the following actions is a required duty of an Arkansas supervising broker? A. Approve licensee business expenses. B. Attend closings for all licensees. C. Establish work hours for licensees. D. Monitor licensee paperwork.
D. Monitor licensee paperwork.
Once handed over, trust funds belong to the ______ until the transaction for which they were designated has been completed, or they're disbursed according to the agreement between the parties. A. Bank B. Broker C. Licensee D. Party who submitted them
D. Party who submitted them Trust funds belong to the party who submitted them until the transaction for which they were designated has been completed, or they're disbursed according to the agreement between the parties.
Which of the following statements about Arkansas client trust accounts is true? A. Arkansas brokers can open trust accounts at any financial institutions. B. Broker companies that perform property management functions and collect security deposits must have at least two trust accounts. C. Licensees may open trust accounts for their clients without notifying their principal broker. D. Principal brokers are responsible for and may open trust accounts and make deposits and disbursements.
D. Principal brokers are responsible for and may open trust accounts and make deposits and disbursements.
Hometown Realty is closing for good. The firm staff includes the principal broker, executive broker, several salespeople, office manager, and several administrative assistants. Who is responsible for keeping the firm's records once it's closed? A. An administrative assistant B. The executive broker C. The office manager D. The principal broker
D. The principal broker The last remaining principal broker is responsible for the firm's records. He'll notify the commission of the location where the files are held.
Which of the following statements is true about Arkansas trust account state requirements? A. A firm's unlicensed employee may open a trust account with written approval by the principal broker. B. A principal broker has five days from the date of receipt to deposit trust account funds. C. Arkansas laws require one trust account per firm for all real estate transactions. D. The principal broker isn't accountable for trust account activities when the buyer chooses an escrow agent.
D. The principal broker isn't accountable for trust account activities when the buyer chooses an escrow agent. The licensee/broker is only responsible for trust account activity if the licensee/broker chooses the escrow agent.
Sheri's exclusive agency agreement with broker Phillip has expired. Which of the following actions is illegal? A. Phillip asks his co-agent Courtney to take Sheri on as a client. B. Phillip removed the MLS listing himself as the listing agent contact. C. Sheri signed a new listing agreement with Carlson. D. The property sale sign in Sheri's yard lists Phillip as the listing licensee.
D. The property sale sign in Sheri's yard lists Phillip as the listing licensee.
Conrad, an Arkansas broker, submitted his license renewal application on November 10. How did he have to pay for his renewal application fee? A. Fees are paid every other year B. Nothing C. The renewal license amount for a broker D. The renewal license amount for a broker plus an additional late fee
D. The renewal license amount for a broker plus an additional late fee
Randy, a licensee, is in a seller agency relationship with Brent, who is selling his condo in Cabot. The buyer is Tim. Who is Randy's client? A. Both the seller (Brent) and the buyer (Tim) B. Randy's broker C. The buyer (Tim) D. The seller (Brent)
D. The seller (Brent)
Monty is advertising a number of listings in the local Paragould newspaper and includes the fair housing logo in the ad. What else is required? A. A link to his firm's fair housing policy B. A link to the Housing and Urban Development Fair Housing site C. The correct colors D. The verbiage, "Equal Opportunity Housing"
D. The verbiage, "Equal Opportunity Housing" The fair housing logo must be used in conjunction with the "equal opportunity housing" statement.
What is the primary purpose of real estate laws? A. To empower the commission with unlimited authority B. To hold the commission to a minimum standard C. To protect licensees from the public D. To provide rules on how a licensee should behave
D. To provide rules on how a licensee should behave
Property manager Tom is managing a large rental property for Mrs. Battson in North Little Rock. One of the tenants, Harriett, has a dead bolt lock that is not functioning. The person responsible for providing a new lock is ______. A. Harriett B. Mrs. Battson C. The janitor D. Tom
D. Tom
