Arkansas Real Estate License Cheat Sheet 2026

The 30 highest-yield Arkansas Real Estate License facts, distilled from real exam questions. Print it, save it as a PDF, or study it here — free, no sign-up.

1. Which of the following is TRUE about joint tenancy in Arkansas? → It requires the four unities of time, title, interest, and possession
2. Which of the following would most likely render an Arkansas real estate contract voidable? → One party was under duress at signing
3. Which of the following is required for a valid real estate contract in Arkansas? → Consideration, offer, acceptance, and legal capacity of the parties
4. A seller's agent learns of a zoning change that will reduce the property's value. Disclosing this to the buyer is an example of fulfilling the duty of: → Disclosure of material facts
5. Designated agency in Arkansas allows a broker to: → Appoint different licensees within the same firm to represent each party separately
6. Under FIRREA, appraisals for federally related transactions above a certain threshold must be performed by: → A state-licensed or state-certified appraiser
7. Under Arkansas disclosure requirements, when must a licensee disclose an agency relationship to a prospective client? → At the first substantive contact
8. An Arkansas broker who wants to operate a real estate business under a trade name must: → Register the trade name with AREC
9. Under AREC regulations, which entity has the authority to establish the Real Estate Recovery Fund? → The Arkansas Legislature through statute
10. The Equal Credit Opportunity Act (ECOA) prohibits discrimination in lending based on all of the following EXCEPT: → Credit score and ability to repay
11. Under Arkansas agency law, which duty does a seller's agent NOT owe to an unrepresented buyer? → Loyalty and advocacy
12. Which document recorded in Arkansas county records secures the lender's interest in the property as collateral for the mortgage? → Mortgage or Deed of Trust
13. Which type of mortgage clause allows a lender to demand full repayment if the property is sold or transferred? → Due-on-sale clause
14. Under Arkansas intestate succession laws, who inherits real property when a person dies without a will and is survived only by a spouse and children? → The spouse receives one-third and the children share two-thirds
15. Under Arkansas law, what document provides the borrower with a detailed breakdown of all closing costs and fees? → Closing Disclosure
16. Under Arkansas regulations, earnest money deposited with a broker must be placed into the trust account within: → 3 banking days of contract acceptance
17. Which of the following actions would constitute commingling under AREC rules? → Placing client funds in the broker's personal checking account
18. Which of the following must be disclosed by a seller under the Arkansas Property Disclosure Act? → Known defects in the foundation or structure
19. An AREC disciplinary hearing in Arkansas is considered what type of proceeding? → Administrative proceeding
20. Which entity is responsible for enforcing real estate license law in Arkansas? → Arkansas Real Estate Commission (AREC)
21. A buyer pays $4,500 for "discount points" on a $300,000 loan. What is the primary function of paying these points at closing? → To lower the interest rate on the mortgage for the life of the loan.
22. An Arkansas licensee wishes to sell their own personal property. Which of the following is TRUE? → They must disclose their licensed status in the transaction
23. Which of the following is TRUE regarding AREC's authority over unlicensed real estate activity in Arkansas? → AREC can seek injunctive relief through the courts to stop unlicensed activity
24. A building that was legally constructed before current zoning laws were enacted but does not comply with new regulations is called a: → Non-conforming use
25. Which entity sets the conforming loan limits that define whether a loan is conventional or jumbo? → Federal Housing Finance Agency (FHFA)
26. When must a licensee disclose to a buyer that they have a personal financial interest in a property being sold? → Before any offer is written
27. Prorations at closing adjust which items between buyer and seller? → Prepaid expenses and accrued expenses such as taxes and HOA dues
28. Which of the following is a primary characteristic of an FHA-insured loan compared to a typical conventional loan? → It allows for a lower down payment and has more flexible credit requirements.
29. The Arkansas Real Estate Commission is composed of how many members? → 7 members
30. An Arkansas buyer discovers after closing that the seller failed to disclose a known foundation defect. What is the buyer's strongest legal basis for a claim? → Fraudulent concealment