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. Under Arkansas disclosure requirements, when must a licensee disclose an agency relationship to a prospective client? → At the first substantive contact
5. 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
6. Which type of mortgage clause allows a lender to demand full repayment if the property is sold or transferred? → Due-on-sale clause
7. 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
8. Under Arkansas law, what document provides the borrower with a detailed breakdown of all closing costs and fees? → Closing Disclosure
9. Which of the following must be disclosed by a seller under the Arkansas Property Disclosure Act? → Known defects in the foundation or structure
10. Which entity is responsible for enforcing real estate license law in Arkansas? → Arkansas Real Estate Commission (AREC)
11. 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.
12. 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
13. 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
14. 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.
15. 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
16. Under Arkansas law, which of the following situations would require a property condition disclosure form? → Sale of a previously occupied single-family home
17. In an Arkansas real estate transaction, which clause allows a seller to continue marketing the property while a buyer's contingency is pending? → Kick-out clause
18. A property management agreement between an owner and a property manager creates which type of legal relationship? → Principal-agent (agency) relationship
19. Under Arkansas law, which of the following best describes a transaction licensee? → A licensee who facilitates a transaction without representing either party as a client
20. Which federal agency is primarily responsible for enforcing the Fair Housing Act? → The U.S. Department of Housing and Urban Development (HUD)
21. Which type of zoning classification is typically used for single-family homes, duplexes, and apartment buildings? → Residential zoning
22. What does the term 'discount points' refer to in mortgage financing? → Prepaid interest paid at closing to reduce the loan's interest rate
23. In Arkansas, when does the transfer of equitable title typically occur in a real estate transaction? → When the purchase contract is fully executed by both parties
24. Under Arkansas law, how is the 'assessed value' of a property calculated for tax purposes? → It is calculated as 20% of the property's true market value.
25. In Arkansas, which appraisal approach estimates value by calculating the cost to rebuild a property minus depreciation plus land value? → Cost approach
26. When using the income approach to value a rental property in Arkansas, what does the capitalization rate represent? → The rate of return an investor expects on the investment
27. The practice of refusing to make mortgage loans or issue insurance policies in certain geographic areas, regardless of individual qualifications, is called: → Redlining
28. How many hours of pre-license education must a salesperson candidate complete in Arkansas? → 60 hours
29. What is the primary purpose of a Comparative Market Analysis (CMA) prepared by an Arkansas real estate licensee? → To help sellers set a competitive listing price
30. Which of the following is NOT a fiduciary duty owed by an Arkansas real estate agent to their client? → Guaranteeing profit on the investment