Arkansas License Test Arkansas Real Estate License 2 — Questions and Answers
Question 1: Under the Arkansas Real Estate License Law, how many hours of continuing education must a licensee complete per renewal period?
- 7 hours
- 15 hours (Correct answer)
- 30 hours
- 45 hours
Correct answer: 15 hours
Arkansas licensees must complete 15 hours of continuing education each renewal period to maintain an active license.
Question 2: A buyer's agent in Arkansas discovers a material defect in the property that the seller has not disclosed. What is the agent's legal duty?
- Keep it confidential to protect the seller
- Disclose it to the buyer immediately (Correct answer)
- Report it only to the Arkansas Real Estate Commission
- Ignore it if the buyer has not asked
Correct answer: Disclose it to the buyer immediately
Arkansas law requires licensees to disclose all known material defects to buyers, regardless of who they represent.
Question 3: In Arkansas, which entity has the authority to revoke a real estate license?
- The county court
- The Arkansas Real Estate Commission (AREC) (Correct answer)
- The National Association of Realtors
- The Governor's office
Correct answer: The Arkansas Real Estate Commission (AREC)
The Arkansas Real Estate Commission (AREC) is the state regulatory body with authority to suspend or revoke licenses.
Question 4: An Arkansas broker is holding earnest money from a buyer. Where must these funds be deposited?
- The broker's personal bank account
- A federally insured escrow or trust account (Correct answer)
- The seller's personal account
- Any interest-bearing CD of the broker's choosing
Correct answer: A federally insured escrow or trust account
Earnest money must be held in a separate, federally insured escrow or trust account and not commingled with the broker's personal or business funds.
Question 5: Under Arkansas law, a net listing is considered:
- A preferred listing method for luxury homes
- Legal only with AREC written approval
- Illegal and prohibited (Correct answer)
- Permitted if both parties agree in writing
Correct answer: Illegal and prohibited
Net listings are prohibited in Arkansas because they create an inherent conflict of interest between the broker and the client.
Question 6: Which of the following actions would constitute 'blockbusting' under fair housing law as applied in Arkansas?
- Refusing to show homes in a flood zone
- Telling homeowners their neighborhood will decline due to minority group move-ins to induce sales (Correct answer)
- Charging higher rents for larger units
- Advertising a home only in English-language newspapers
Correct answer: Telling homeowners their neighborhood will decline due to minority group move-ins to induce sales
Blockbusting is the illegal practice of inducing homeowners to sell by making representations about the entry of protected classes into the neighborhood.
Question 7: A salesperson in Arkansas wants to switch from one broker to another. What is the correct procedure?
- Simply begin working for the new broker immediately
- Notify the old broker and file a transfer request with AREC (Correct answer)
- Submit a new license application and retake the exam
- Wait until the current license renewal period ends
Correct answer: Notify the old broker and file a transfer request with AREC
The salesperson must notify the current broker and submit a license transfer request to AREC before working under the new broker.
Arkansas License Test Arkansas Real Estate License 2
Under the Arkansas Real Estate License Law, how many hours of continuing education must a licensee complete per renewal period?