Free Arkansas Real Estate License Real Estate Contracts Questions and Answers

Question 1

According to the Arkansas Statute of Frauds, which of the following agreements related to real estate MUST be in writing to be enforceable?

Accepted Answer

A contract to purchase a property that will close in 6 months.

Answer

A month-to-month residential lease.

Answer

An agreement between two brokers to share a commission.

Answer

A seller's verbal promise to include the patio furniture with the sale.

Question 2

A buyer in Arkansas makes an offer on a home that includes a financing contingency. The contingency states the buyer must obtain a loan within 30 days. On day 28, the buyer's loan is denied. What is the most likely outcome?

Accepted Answer

The contract is automatically void, and the earnest money is returned to the buyer.

Answer

The buyer forfeits their earnest money to the seller.

Answer

The seller can sue the buyer for specific performance.

Answer

The seller is required to offer owner financing to the buyer.

Question 3

A seller accepts a buyer's full-price offer. Before the agents can deliver the signed acceptance back to the buyer, another, higher offer comes in. According to Arkansas Real Estate Commission regulations, what is the listing agent's obligation?

Accepted Answer

The agent must present the second offer to the seller, who may consider it as a backup.

Answer

The agent must ignore the second offer as a contract already exists.

Answer

The agent can reject the second offer on behalf of the seller.

Answer

The agent must tell the second offeror about the terms of the first offer to encourage a higher bid.

Question 4

Which of the following is an essential element required for a real estate contract to be valid and enforceable in Arkansas?

Accepted Answer

Consideration (e.g., the sale price).

Answer

An earnest money deposit.

Answer

A signature from a notary public.

Answer

A professional home inspection.

Question 5

A seller in Arkansas breaches a valid and enforceable real estate sales contract by refusing to close. Which of the following is a remedy the buyer could pursue?

Accepted Answer

Sue the seller for specific performance.

Answer

File a complaint with the Arkansas Real Estate Commission to force the sale.

Answer

Sue the seller for punitive damages.

Answer

Place a mechanic's lien on the property.

Question 6

A buyer submits an offer to purchase a home in Little Rock. The seller is not satisfied with the price and writes in a higher price, initials the change, and signs the document. What is the status of the contract at this point?

Accepted Answer

The original offer is terminated, and the seller has created a counteroffer.

Answer

A valid contract has been formed.

Answer

The buyer is now legally obligated to accept the new price.

Answer

The original offer remains valid, and the seller's change is a separate offer.