Arkansas License Test Arkansas Real Estate License 3 — Questions and Answers
Question 1: In Arkansas, how long is the initial real estate salesperson license valid before requiring renewal?
- 6 months
- 1 year
- 2 years (Correct answer)
- 3 years
Correct answer: 2 years
An initial Arkansas real estate salesperson license is valid for two years from the date of issuance.
Question 2: A listing agent receives two offers simultaneously on a property. What must the agent do under Arkansas agency law?
- Present only the highest offer to avoid wasting the seller's time
- Present both offers promptly to the seller (Correct answer)
- Reject the lower offer on behalf of the seller
- Wait 48 hours before presenting any offers
Correct answer: Present both offers promptly to the seller
An agent must present all offers to the seller promptly and in a timely manner, allowing the seller to make an informed decision.
Question 3: Under Arkansas real estate law, the term 'puffing' refers to:
- Illegal misrepresentation of property condition
- An exaggerated, non-factual promotional statement (Correct answer)
- Failure to disclose a known defect
- Inflating an appraisal value for commission purposes
Correct answer: An exaggerated, non-factual promotional statement
Puffing is an exaggerated or subjective opinion (e.g., 'best neighborhood in town') that is not considered fraudulent misrepresentation.
Question 4: An Arkansas broker who wishes to open a branch office must:
- Hire a second designated broker for the branch
- Register the branch office with AREC (Correct answer)
- Obtain a separate state business license only
- File notice with the county clerk
Correct answer: Register the branch office with AREC
Each branch office must be registered with AREC and may require a designated managing broker responsible for that location.
Question 5: Which type of agency relationship is created when a buyer tells an agent 'I want you to work for me' and the agent agrees, but nothing is put in writing?
- Express written agency
- Implied agency (Correct answer)
- Dual agency
- Designated agency
Correct answer: Implied agency
Implied agency is created by conduct or verbal agreement without a formal written contract between the parties.
Question 6: In an Arkansas transaction, 'procuring cause' most directly determines:
- Which attorney closes the deal
- Which broker is entitled to the commission (Correct answer)
- How earnest money is distributed if the deal falls through
- The seller's minimum acceptable price
Correct answer: Which broker is entitled to the commission
Procuring cause identifies which broker's efforts were the unbroken series of events leading to the sale, thus entitling that broker to the commission.
Question 7: Under Arkansas law, which disclosure must be made to all parties in a real estate transaction regardless of agency relationship?
- The seller's minimum acceptable price
- The buyer's maximum budget
- Known material defects in the property (Correct answer)
- The amount of the cooperating broker's commission
Correct answer: Known material defects in the property
Regardless of agency, all licensees must disclose known material defects that could affect the value or desirability of the property.
Arkansas License Test Arkansas Real Estate License 3
In Arkansas, how long is the initial real estate salesperson license valid before requiring renewal?