Arkansas Real Estate License Arkansas Real Estate License License Law and Disclosures Questions and Answers 2 — Questions and Answers
Question 1: Under Arkansas real estate law, how long does a licensee have to deposit earnest money into an escrow account after acceptance of an offer?
- Within 3 business days (Correct answer)
- Within 5 business days
- Within 7 calendar days
- Within 10 calendar days
Correct answer: Within 3 business days
Arkansas law requires earnest money to be deposited into an escrow account within three business days of acceptance of the contract.
Question 2: Which of the following must be disclosed by a seller under the Arkansas Property Disclosure Act?
- Known defects in the foundation or structure (Correct answer)
- The racial composition of the neighborhood
- Whether a sex offender lives nearby
- The seller's original purchase price
Correct answer: Known defects in the foundation or structure
The Arkansas Property Disclosure Act requires sellers to disclose known material defects including structural and foundation issues.
Question 3: What is the penalty for practicing real estate in Arkansas without a valid license?
- A Class A misdemeanor (Correct answer)
- A Class D felony
- A civil fine of $500
- A Class C misdemeanor
Correct answer: A Class A misdemeanor
Practicing real estate without a license in Arkansas is classified as a Class A misdemeanor under state law.
Question 4: In Arkansas, a dual agency arrangement requires which of the following?
- Written informed consent from both buyer and seller (Correct answer)
- Only verbal consent from the buyer
- Approval from the Arkansas Real Estate Commission
- A court order authorizing the arrangement
Correct answer: Written informed consent from both buyer and seller
Arkansas law mandates that both parties provide written informed consent before a licensee may act as a dual agent.
Question 5: Which entity is responsible for enforcing the Arkansas Real Estate License Law?
- The Arkansas Real Estate Commission (Correct answer)
- The Arkansas Department of Finance
- The Secretary of State's office
- The Arkansas Attorney General
Correct answer: The Arkansas Real Estate Commission
The Arkansas Real Estate Commission (AREC) is the regulatory body that enforces real estate license law in the state.
Question 6: Under Arkansas disclosure requirements, when must a licensee disclose an agency relationship to a prospective client?
- At the first substantive contact (Correct answer)
- After the purchase agreement is signed
- Only if the client requests it
- At the closing table
Correct answer: At the first substantive contact
Arkansas requires licensees to disclose their agency relationship at the first substantive contact with a prospective client.
Arkansas Real Estate License Arkansas Real Estate License License Law and Disclosures Questions and Answers 2
Under Arkansas real estate law, how long does a licensee have to deposit earnest money into an escrow account after acceptance of an offer?