Arkansas Real Estate License Arkansas Real Estate License Real Estate Contracts Questions and Answers 2

Question 1

Under Arkansas law, what is the statute of limitations for filing a breach of contract claim related to a written real estate agreement?

Accepted Answer

5 years

Answer

Arkansas imposes a five-year statute of limitations on actions arising from written contracts.

Question 2

Which of the following would most likely render an Arkansas real estate contract voidable?

Accepted Answer

One party was under duress at signing

Answer

A contract signed under duress is voidable at the option of the party who was coerced.

Question 3

In Arkansas, what happens if a real estate purchase agreement does not specify a closing date?

Accepted Answer

Closing must occur within a reasonable time

Answer

When no closing date is specified, Arkansas courts require performance within a reasonable time under the circumstances.

Question 4

Which clause in an Arkansas real estate contract allows the buyer to cancel if they cannot secure financing by a specified date?

Accepted Answer

Financing contingency clause

Answer

A financing contingency clause permits the buyer to withdraw without penalty if loan approval is not obtained by the deadline.

Question 5

Under Arkansas real estate law, which of the following is required for a valid land sale contract?

Accepted Answer

A written instrument signed by the party to be charged

Answer

The Arkansas Statute of Frauds requires contracts for the sale of land to be in writing and signed by the party to be charged.

Arkansas Real Estate License Practice Test