Arkansas License Test Arkansas Real Estate License 4 — Questions and Answers
Question 1: What is the maximum fine AREC can impose per violation on a licensed broker in Arkansas?
- $500
- $1,000
- $2,500 (Correct answer)
- $10,000
Correct answer: $2,500
AREC may impose administrative fines of up to $2,500 per violation in addition to other disciplinary actions such as suspension or revocation.
Question 2: Under Arkansas fair housing law, which of the following is NOT a protected class?
- Race
- Religion
- Occupation (Correct answer)
- National origin
Correct answer: Occupation
Occupation is not a protected class under federal or Arkansas fair housing law; the seven federal protected classes include race, color, religion, sex, national origin, familial status, and disability.
Question 3: A seller tells their listing agent they will not sell to buyers of a specific religion. The agent should:
- Follow the seller's instructions as the client's wishes come first
- Refuse to carry out the discriminatory instruction and may withdraw from the listing (Correct answer)
- Include the restriction in the MLS as a 'seller preference'
- Inform only interested buyers privately
Correct answer: Refuse to carry out the discriminatory instruction and may withdraw from the listing
Fair housing law prohibits religious discrimination; the agent must refuse to comply and may terminate the listing agreement.
Question 4: In Arkansas, a real estate licensee who acts as an undisclosed dual agent is subject to:
- A minor ethical reprimand only
- Loss of commission and possible license revocation (Correct answer)
- A mandatory mediation session
- No penalty if both parties later ratify the transaction
Correct answer: Loss of commission and possible license revocation
Undisclosed dual agency is illegal in Arkansas; penalties can include loss of commission rights and disciplinary action up to license revocation.
Question 5: Which of the following best describes an 'exclusive right to sell' listing in Arkansas?
- Only the seller can find the buyer without owing commission
- The listing broker earns a commission regardless of who procures the buyer (Correct answer)
- The seller may list with multiple brokers simultaneously
- The broker earns commission only if they personally find the buyer
Correct answer: The listing broker earns a commission regardless of who procures the buyer
Under an exclusive right to sell listing, the broker receives a commission no matter who sells the property, including the seller themselves.
Question 6: When must an Arkansas licensee provide the 'Working with a Real Estate Agent' disclosure form to a consumer?
- At closing
- Before providing any specific real estate assistance (Correct answer)
- Only when entering into a buyer representation agreement
- After an offer has been accepted
Correct answer: Before providing any specific real estate assistance
Arkansas requires the agency disclosure be provided to consumers before the licensee provides any substantive real estate services.
Question 7: What does 'steering' mean in the context of Arkansas fair housing law?
- Directing clients toward higher-priced listings to earn more commission
- Channeling buyers toward or away from neighborhoods based on protected class characteristics (Correct answer)
- Refusing to show bank-owned properties
- Recommending only one lender to buyers
Correct answer: Channeling buyers toward or away from neighborhoods based on protected class characteristics
Steering is the illegal practice of guiding buyers toward or away from certain areas based on race, religion, national origin, or other protected classes.
Arkansas License Test Arkansas Real Estate License 4
What is the maximum fine AREC can impose per violation on a licensed broker in Arkansas?