AREC Arkansas Broker Practice Exam

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• How many days does Holiday Shores have to rescind the contract for the Time-Share Interval?
• What is the difference between “real property” and “personal property”?
• What is a broker required to disclose regarding material defects in a property?
• What constitutes a lease in real estate?
• What role does an agent play in an agency relationship?
• What is required for a licensee to advertise personally owned property for sale or rent?
• If a fraudulently obtained real estate license was obtained in 1994, how much time must pass before the Commission cannot investigate?
• What is the difference between “actual authority” and “apparent authority” in agency relationships?
• Which individual would not be exempt from the requirements for licensure as a broker or salesperson?
• What does the term “chain of title” mean?
• What is required for a buyer to qualify for a mortgage loan?
• Which of the following best describes a broker's commission?
• What is the purpose of a title search in real estate?
• How often is the Arkansas Real Estate Commission required to publish a list of all licensees and those who have received disciplinary action?
• What type of agency relationship exists when a broker represents both the buyer and the seller in a transaction?
• What is a buyer's agent?
• What distinguishes an associate broker?
• How many members are on the Arkansas Real Estate Commission?
• If an investigator finds evidence that a sales agent has violated the rules, what can the licensee do prior to the hearing?
• What is a potential consequence for a broker who commits illegal acts?
• Which of the following is NOT a duty of a real estate agent?
• What does the term "escrow" refer to in real estate transactions?
• What are the required classroom hours for Post-License education as mandated by the Arkansas Real Estate Commission?
• What is the annual registration fee for each time share principal broker, managing agent, and exchange agent?
• Which action can cause a licensee to lose their real estate license?
• What action can the Arkansas Real Estate Commission NOT legally take against a broker after a violation?
• What action must a principal broker take when an existing license is no longer valid?
• What must a broker do if they acquire an exclusive listing?
• In real estate terms, what does the expiration of an exclusive listing mean for the property’s marketability?
• Where must the license issued to a salesperson be displayed?
• In which situation would a broker likely not be disciplined for their actions?
• Real Estate Commission Laws and Regulations are an expression of:
• What is the typical duration of a listing agreement?
• What is the main purpose of having a performance bond for brokers?
• In real estate, what does "zoning" refer to?
• Why are comparable sales important in property appraisal?
• What is the legal status of the rules and regulations of the Arkansas Real Estate Commission?
• What is the primary purpose of a property appraisal?
• What duties can a salesperson perform with permission from a broker?
• What is the purpose of a property's title search?
• What does the term “eminent domain” refer to in real estate?
• What type of agreement does an exclusive right to sell listing represent?
• How often must brokers renew their licenses in Arkansas?
• Who is required to have a real estate license?
• What responsibility does a principal broker have when changing a brokerage firm's office location within the same city?
• What sanction can the Arkansas Real Estate Commission impose for violations of real estate law?
• Who is responsible for ensuring compliance with real estate laws in Arkansas?
• How many days does Jones have to rescind the contract for the Time-Share Interval after signing?
• In Arkansas, what is the maximum amount of time a buyer has to rescind a purchase agreement for certain transactions?
• Which term describes laws that protect individuals from discrimination in housing?
• What is the minimum age requirement to apply for a broker's license in Arkansas?
• If a broker learns a salesperson in his company has engaged in real estate activities independently from the principal broker, the broker should:
• When does a landlord NOT have to provide notice to terminate a lease?
• What typically happens during a closing in a real estate transaction?
• What is required for a real estate transaction in Arkansas to be considered legally binding?
• When a broker disclosed to a tenant that he represents the owner orally, what should have been done?
• What does NAR stand for in the real estate industry?
• After receiving a real estate license, what could lead to disciplinary action?
• Which of the following individuals would not need to be licensed?
• What is an earnest money deposit?
• Provided that he or she is licensed, a salesperson may:
• A licensed real estate salesperson may receive a fee from any brokerage firm located:
• What type of education is generally exempt for real estate licensees after a certain age?
• As a property manager, where should rents be deposited when received on a 25 Unit Complex?
• What is one of the main purposes of property appraisal?
• What are the characteristics of a valid real estate contract in Arkansas?
• What is the lawful status of Ike's transaction with Charlie regarding the purchase of Ollie's 40-acre tract?
• What will the Real Estate Commission likely require if a check for license renewal is returned due to insufficient funds?
• What defines a “short sale” in real estate?
• A real estate license is generally valid for a period of:
• In the context of real estate, what is the role of an escrow account?
• What does the term "real estate" encompass according to license law?
• The type of license that allows individuals to practice real estate is:
• What must be included in the written disclosure of a property's condition in Arkansas?
• What is one reason a broker might be required to present a new offer to the offeree?
• What is a key characteristic of an agency relationship?
• What must occur before a license can be revoked or suspended?
• For how long must a principal broker maintain records of transactions?
• Which responsibility is NOT required of each principal broker?
• What is a potential outcome for a licensee who engages in perjury regarding their license application?
• What type of crime may lead to a licensee's real estate license being revoked?
• What is the term for the legal process used to transfer ownership or title of real property?
• What should a broker do if they are cited for a violation of the license law?
• What document formally conveys property ownership from one party to another?
• What is a real estate broker's fiduciary duty to their client?
• What occurs to an exclusive listing when its time period expires?
• How many hours of continuing education must an Arkansas broker complete every two years?
• If a complainant disagrees with the Director of the Commission's dismissal of his written complaint, what should the complainant do?
• For what purpose can the Arkansas recovery fund assets be utilized?
• By when must all real estate sales agents and brokers complete and report required Post-License education hours?
• What does a right of first refusal grant a party?
• What is the term for a legal document that gives authority to another person to act on one’s behalf in real estate transactions?
• When an exclusive listing agreement expires, what is the owner’s primary option?
• Who is exempt from continuing education requirements for the first renewal of their initial license?
• What action can result from failing to comply with Post-License education requirements?
• If the only broker in a firm dies, his sales personnel may continue to operate the firm:
• What should a broker do when an offeror makes a lower offer after an initial offer has been made?
• Which of the following does NOT constitute an illegal practice for a real estate licensee?
• After a violation is confirmed and damages are awarded, how much will the Arkansas recovery fund pay if the damages are $100,000?
• Which of the following is NOT a requirement for obtaining a real estate license?
• What is the required bond amount for an agent in a Time-Share Development in Arkansas?
• When does the Arkansas Real Estate Commission need to hear a complaint against a broker after a violation?
• In real estate, what is an appraisal?
• What is the primary focus of an appraiser when evaluating a property?
• What term is specifically approved by the Commission for describing the worth of real property in a broker price opinion (BPO)?
• Which of the following is typically included in the responsibilities of a principal broker?
• Which of the following best describes "intangible assets" in real estate?
• What is a contingent offer?
• Which of the following is NOT a duty of an exclusive broker?
• Which of the following does NOT contribute to determining a property's market value?
• Copies of all signed documents of real estate transactions prepared by a licensee must:
• What type of license does a resident manager of an apartment complex require?
• If an agent fails to renew their license by December 31, what is the penalty imposed on them?
• What type of listing agreement allows the owner to sell the property independently without owing a commission?
• If a licensee wants to appeal a decision made by the Arkansas Real Estate Commission, which entity will render the judgment?
• How many Commissioners oversee real estate activities in Arkansas and who appoints them?
• In Arkansas, what is the primary factor that determines property tax rates?
• If Broker B shows a property that has an exclusive right to sell listing with Broker A, what law is Broker B violating?
• What is the broker's primary responsibility to salespersons?
• What does it mean for a property to be “underwater”?
• Which of the following is an example of an intangible asset?
• What is the primary source of law regulating real estate transactions in Arkansas?
• What is the consequence for an unlicensed person violating license law?
• What is the required notification period for terminating a month-to-month lease in Arkansas?
• When can an associate broker in Arkansas begin supervising others?
• In Arkansas, what is a primary condition for unlicensed investors regarding options on real estate?
• If Broker A goes on vacation, what should the selling broker do with offers on Broker A's listed property?
• What is required for an associate broker to supervise others under Arkansas Law?
• What is a foreclosure?
• A broker's license may be revoked for all of the following actions EXCEPT:
• What is the fee for a broker transferring from one broker to another for the first time during a renewal period?
• Who is responsible for false or misleading advertising in connection with Time-Share?
• What happens if an unlicensed person attempts to file a suit for a commission on a real estate transaction?
• If a broker has his/her license suspended or revoked by the Arkansas Real Estate Commission, what is the time frame for an appeal?
• What does the term "fair housing" refer to in the context of real estate?
• What is one reason that a real estate license may be revoked?
• What may be an acceptable method for recovering from a shortage in the recovery fund?
• What should be done with earnest money received on another company's listing?
• What amount of damages is the Arkansas recovery fund obliged to cover if there are total damages of $100,000?
• How do intangible assets affect a real estate property's total value?
• What is required for a real estate broker to operate legally in Arkansas?
• How many days does a principal broker have to notify the Arkansas Real Estate Commission after a licensee has been discharged or terminated?
• What is an essential condition for a broker's action regarding tenant representation?
• In Arkansas, what must a broker do after securing a listing agreement?
• After September 30, 2019, what may the Arkansas Real Estate Commission do regarding continuing education hours?
• Which of the following reasons would NOT lead to suspension or revocation of an Arkansas real estate license?
• What is the statutory time limit for filing a complaint against a licensed real estate agent in Arkansas?
• If the recovery fund is depleted, how much must each licensee pay in addition to the annual license fee?
• What is the purpose of a comparative market analysis (CMA)?
• If the Director of the Commission denies a broker's complaint, where may the broker appeal?
• What can happen to salespersons when Broker Brown has his license revoked?
• In the scenario where a prospective buyer approached a real estate agency, what did the sales associate fail to do properly?
• What can a sales associate do regarding their license status?
• How long does the Real Estate Commission have to investigate a complaint before notifying the licensee?
• A Public Offering Statement must be provided to each purchaser of a Time-Share Interval:
• What is the difference between a lease option and a lease purchase?
• In which of the following capacities may a licensed Arkansas real estate principal broker employ an agent?
• Which statement accurately reflects the relationship between an agent and a client in real estate?
• A broker's fiduciary duty includes all the following EXCEPT:
• How long after a broker's violation can an aggrieved party file a complaint to ensure it is heard by the Arkansas Real Estate Commission?
• For how long must advertising materials related to Time-Share Units be maintained by the developer or agent?
• What does the term “escrow” refer to in real estate transactions?
• What factors are typically considered when determining the market value of a property?
• What is the potential fine the Arkansas Real Estate Commission may impose on Bob and Mary for not including their principal broker's name in their advertising?
• What is the principle of 'agency' in real estate?
• In the context of real estate, what defines "agency"?
• What is the fee for a salesperson to transfer from one broker to another for the second time during a renewal period?
• If a complaint were filed against Broker J for stating that the seller would accept less than the listed price, what action is NOT within the Arkansas Real Estate Commission's authority?
• What is the primary purpose of the Arkansas Real Estate Commission (AREC)?
• Which document must a real estate licensee maintain to demonstrate compliance with state regulations?
• What is the formula for calculating the gross rent multiplier (GRM)?
• According to Arkansas regulations, what result occurs if a real estate licensee operates under a name different from their principal broker's business name?
• What requirement must real estate principal brokers licensed only in Arkansas fulfill?
• Which document is typically used to represent a buyer's offer in real estate transactions?
• Under Arkansas Real Estate Law, what is Ray's situation regarding his intention to buy Bob's property?
• What is the role of a transaction coordinator?
• A broker may have his/her license suspended or revoked by the Real Estate Commission if found guilty of any of these EXCEPT:
• The primary purpose of Real Estate Commission regulations is to:
• What option is available to an individual if their license is revoked by the Commission?
• What is one of the key responsibilities of a property manager?
• What must all participants in a real estate transaction in Arkansas comply with?
• What is the primary goal of the Fair Housing Act?
• What is a listing agreement in real estate?
• Membership on the Real Estate Commission in Arkansas is restricted to: