CE SHOP ARKANSAS PRACTICE TEST QUESTIONS AND CORRECT ANSWERS 2024/2025 LATEST UPDATE ALREA, Exams of Nursing

Download CE SHOP ARKANSAS PRACTICE TEST QUESTIONS AND CORRECT ANSWERS 2024/2025 LATEST UPDATE ALREA and more Exams Nursing in PDF only on Docsity! CE SHOP ARKANSAS PRACTICE TEST QUESTIONS AND CORRECT ANSWERS 2024/2025 LATEST UPDATE ALREADY GRADED A+ Alexi signed a time-share purchase contract on the Wednesday before Memorial Day weekend. What is the last day he can possibly submit a cancellation notice to the seller? A. On Memorial Day B. The day after Memorial Day C. The day before Memorial Day D. The Friday before Memorial Day ANS: ✔- B. The day after Memorial Day Since the fifth day after the signing of the contract is a holiday (Memorial Day), Alexi has until the following day to submit his cancellation notice. A few days ago, Arkansas broker Jessica submitted an offer to her seller client, Sean. He called her this morning to say he's accepting the offer. Woohoo! To stay in compliance with commission rules, what must occur prior to closing? Select the best correct answer. A. A copy of the contract, including any addenda, may be provided to the buyer and seller after closing. B. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing. C. The buyer must receive a copy of the contract, including any addenda, containing all required signatures. D. The seller must receive a copy of the contract, including any addenda, containing all required signatures. ANS: ✔- B. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing. Both the buyer and the seller must receive a copy of the contract, including any addenda and containing all required signatures, prior to closing. Kent has knowledge that Brent, another salesperson in the firm, purposefully published a misleading advertisement for a home in West Fork. What does the commission say Kent's duty is in this situation? A. Report it in writing to the commission. B. Report it in writing to their principal broker. C. Speak directly to Brent advising him of the violation. D. Turn Brent into the police. ANS: ✔- A. Report it in writing to the commission. Dennis is a broker in Rogers who wants to open a branch office location in Prairie Creek. What does he need to do to open a branch office? D. Within one week of being received ANS: ✔- C. No later than the close of the next business day In Arkansas, any offers the selling licensee receives must be presented to the listing firm not later than the close of the next business day. In Arkansas, which individual in these scenarios would require a real estate license? A. Joan is searching for a new home for a friend moving into town. After the friend buys a property, Joan will receive 2% of the sales price for her time. B. Marcus is selling his own home and isn't using the services of a listing agent. C. Pat is helping his sister Kristin find a new apartment. He's searching listings and calling property management companies but won't receive anything in return. D. Ron is acting as executor of his uncle's estate, which includes selling his uncle's property. ANS: ✔- A. Joan is searching for a new home for a friend moving into town. After the friend buys a property, Joan will receive 2% of the sales price for her time. In general, unlicensed consumers can't perform real estate activities for others for a fee or for compensation of any kind. Exceptions include trustees and executors, or people selling their own property. Joan is receiving compensation and would need to be licensed in order not to break any laws. Which of these advertisements would be compliant with Arkansas license law? A. Adam's ad states he is a member of NAR, even though he hasn't finished his membership application yet. B. Jodie's ad for a property listed with her brokerage includes just her individual name and phone number. C. Paul's ad discloses his license status and his brokerage firm's name. D. Zoe's ad shows a different brokerage name than the one on her broker's registered business license. ANS: ✔- C. Paul's ad discloses his license status and his brokerage firm's name. Sheri's exclusive agency agreement with broker Phillip has expired. Which of the following actions is illegal? A. Phillip asks his co-agent Courtney to take Sheri on as a client. B. Phillip removed the MLS listing himself as the listing agent contact. C. Sheri signed a new listing agreement with Carlson. D. The property sale sign in Sheri's yard lists Phillip as the listing licensee. ANS: ✔- D. The property sale sign in Sheri's yard lists Phillip as the listing licensee. In Arkansas, is having a brokerage policy enough to meet a broker's responsibility to supervise? A. Only if it covers every contingency B. Only if it's enforced C. Only if it's generally understood D. Only if it's in writing and communicated ANS: ✔- B. Only if it's enforced It's not enough to have a policy; unless it's enforced, a broker isn't meeting his or her responsibility to supervise. Brokers should have receipts of training meetings, details of education provided, etc. Determine which of these is an example of commingling under Arkansas Commission regulations. A. Cynthia deposited her client's earnest money check into the firm's operating account. B. Jenson deposited his client's earnest money check into the firm's trust account. C. Jessica deposited her commission check into her brokerage firm's operating account. D. Sean withdrew funds from the firm's trust account to pay the rent. ANS: ✔- A. Cynthia deposited her client's earnest money check into the firm's operating account. What is the primary purpose of a BPO? A. To help buyers determine how much to offer for a property. B. To help insurers determine the amount of liability insurance to place on a property. C. To help lenders determine the potential sales price for a property. B. Henry provided customers with a copy of their signed broker engagement agreement. C. Isabelle keeps all signed broker engagement agreements in a safe but accessible location in the broker's office. D. Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers. ANS: ✔- D. Mandy didn't disclose to potential buyers that she was showing her own listing, or that she represents the sellers. Evelyn received notice of an AREC audit of her clients' trust account for a sales transaction. Thank goodness she's a stickler for record keeping. Which records are used to produce a monthly reconciliation? A. Journals, bank statements, and reconciliation report B. Journals, check registers, and reconciliation worksheets C. Journals, ledgers, and check registers D. Ledgers, cash receipt books, and reconciliation worksheets ANS: ✔- B. Journals, check registers, and reconciliation worksheets A principal broker for a brokerage firm in Little Rock is transferring to a new firm. Which of the following is NOT one of the options available to the firm? A. Allowing an affiliated salesperson to temporarily step in and act as principal broker B. Closing the business immediately C. Finding another principal broker replacement immediately D. Requesting the commission to allow the firm to operate temporarily without a principal broker ANS: ✔- A. Allowing an affiliated salesperson to temporarily step in and act as principal broker Which of the following actions is a required duty of an Arkansas supervising broker? A. Approve licensee business expenses. B. Attend closings for all licensees. C. Establish work hours for licensees. D. Monitor licensee paperwork. ANS: ✔- D. Monitor licensee paperwork. Hometown Realty is closing for good. The firm staff includes the principal broker, executive broker, several salespeople, office manager, and several administrative assistants. Who is responsible for keeping the firm's records once it's closed? A. An administrative assistant B. The executive broker C. The office manager D. The principal broker ANS: ✔- D. The principal broker The last remaining principal broker is responsible for the firm's records. He'll notify the commission of the location where the files are held. Licensee Lilah represents Benjamin, a seller in Hots Springs Village. Lilah's sister is an interested buyer. What must occur? A. Lilah must disclose her relationship with her sister in writing before they enter into a binding agreement. B. Lilah must get her principal broker's permission to participate in the transaction. C. Lilah must set up a "conflict of interest" escrow account. D. No additional disclosure is required. ANS: ✔- A. Lilah must disclose her relationship with her sister in writing before they enter into a binding agreement. Which of the following is NOT a status option for an Arkansas real estate license? A. Active B. Affiliated C. Inactive D. Unassigned ANS: ✔- B. Affiliated A. Broker Bob accepts an earnest money check, signs it, and uses the funds to pay for his anniversary dinner. B. License holder, Terri, forgets to turn an earnest money deposit over to her broker. C. Maurice places advance rent from his client's tenant into a trust fund account. D. Sandy doesn't want to leave her client's earnest money check laying about, so she places it into her own checking account until the banks open Monday. ANS: ✔- D. Sandy doesn't want to leave her client's earnest money check laying about, so she places it into her own checking account until the banks open Monday. Lucas is a licensee in Hot Springs who is the executor for a property which he has listed himself. What action does the law require Lucas to take for this transaction? A. Disclose his personal interest in the sale. B. Have his fellow licensee process the sale transaction. C. Let his principal broker handle the deal. D. Not collect a commission for the sale. ANS: ✔- A. Disclose his personal interest in the sale. Arkansas broker, Elios, is required to have all agreements regarding real estate in writing in EXCEPT for which one? A. Closing statements B. Financial obligations C. Non-exclusive agency agreements or contracts D. Real estate contracts ANS: ✔- C. Non-exclusive agency agreements or contracts Which of the following is NOT a primary function of the Arkansas Real Estate Commission? A. Calculating property values B. Investigating complaints against licensees C. Managing real estate education requirements D. Reviewing licensing applicants ANS: ✔- A. Calculating property values In a buyer agency relationship, who does the Arkansas licensee represent? A. Both the seller and the buyer B. The buyer C. The listing firm and the buyer D. The seller ANS: ✔- B. The buyer Bernie is creating a promotion for some new timeshare units he's developing in Centerton. What information is he NOT required to include in his ad? A. Disclosure that the promotion is being used to sell timeshare units B. The approximate retail value of any prizes he may offer as part of his promotion C. The complete rules of the promotion D. The names of previous promotion winners ANS: ✔- D. The names of previous promotion winners Joe manages several properties for Candice in Hot Springs. In a money pinch, Joe decides to use a tenant's security deposit to pay for some needed maintenance on another unit. Which is true regarding Joe's actions? A. Joe is allowed to use the deposit for other property management fees, as long as he replaces the money within 72 hours. B. Joe is permitted to use the deposit as he deems necessary. C. Joe is prohibited from ever using the deposit for other fees by Arkansas license law. D. Joe may use the deposit to pay for other expenses and fees, if this was specifically allowed by the tenant agreement. ANS: ✔- D. Joe may use the deposit to pay for other expenses and fees, if this was specifically allowed by the tenant agreement. Property managers can't take tenants' security deposits and use them to pay for other expenses and fees, unless this is specifically stated and allowed by the tenant agreement. B. Harley C. Seller D. Seller's agent ANS: ✔- A. Bentley The commission wouldn't require a report for which of the following incidents? A. Freya received a citation for failing to wear her seat belt while driving. B. Laurie was convicted of larceny. C. Lynda pleaded no contest to a smuggling charge. D. Orion pleaded guilty to an aggravated assault charge. ANS: ✔- A. Freya received a citation for failing to wear her seat belt while driving. What is the primary purpose of real estate laws? A. To empower the commission with unlimited authority B. To hold the commission to a minimum standard C. To protect licensees from the public D. To provide rules on how a licensee should behave ANS: ✔- D. To provide rules on how a licensee should behave The Arkansas Real Estate Commission regulations require ______. A. All contracts to be in writing B. All contracts to have an expiration date C. All licensees to be brokers D. Brokers to provide contractual legal advice ANS: ✔- B. All contracts to have an expiration date AREC regulations require that all written contracts must contain a specific definite duration or expiration date. The commission has finished investigating a complaint against a broker in Little Rock. The next step is for the _____ to either dismiss the complaint or schedule a disciplinary hearing. A. Commission B. Consumer representative C. Executive director D. Vice president ANS: ✔- C. Executive director Once an investigation is completed, the commission's executive director may either dismiss the complaint (if nothing could be proven in a hearing) or schedule a disciplinary hearing. Which entity provides oversight for real estate transactions and regulations, including recordkeeping in Arkansas? A. Arkansas Department of Treasury B. Arkansas Real Estate Commission C. Generally Accepted Accounting Society D. Trust Fund Bureau ANS: ✔- B. Arkansas Real Estate Commission In Arkansas, _____ are directly responsible for the supervision and adequate training of salesperson licensees. A. Licensed assistants B. Principal brokers C. Sponsoring brokers D. Supervising brokers ANS: ✔- B. Principal brokers Principal brokers supervise and train their affiliate licensees. An executive broker is equally responsible for monitoring licensees when one has been designated. Even if a violation doesn't go through an investigation and a hearing, the executive director may ______ licensees who commit certain violations. A. Demand payment for damages from listing agreements, purchase agreements, and closing files—to ensure that they're complete and accurate. In Arkansas, stating or implying that property values may deteriorate because members of a specific class are moving into or out of a neighborhood is called ______. A. Blockbusting B. Commingling C. Redlining D. Steering ANS: ✔- A. Blockbusting Blockbusting, or panic selling, is the term used for trying to induce sales by communicating that members of a particular class are moving into or leaving a neighborhood. When acting as a principal to a real estate transaction, which duty is expanded by statute, requiring additional explicit actions for Arkansas licensees? A. Accounting B. Confidentiality C. Disclosure D. Loyalty ANS: ✔- C. Disclosure All real estate license law for the state of Arkansas is contained in what chapter of the Arkansas Code? A. 17 B. 24 C. 30 D. 42 ANS: ✔- D. 42 All real estate license law is contained in Chapter 42 of the Arkansas Code. This chapter documents all the rules that Arkansas licensees must obey when working in the real estate industry. Blythe is signing an agency agreement with her buyer client in Blytheville. Which of the following statements is true regarding the expiration date of her agency agreement? A. A definite expiration date must be included. B. No expiration date is required. C. The expiration date may not be extended. D. The expiration date must be within 60 days of execution. ANS: ✔- A. A definite expiration date must be included. If you're selling your personal property in Arkansas, which of the following is true of any advertisements that you produce? A. They must appear as any other listing's ad and not include anything about you or your status as a licensee. B. They must clearly state your status as an Arkansas licensee. C. They must contain the words "principal transaction" in the title. D. They must include your photo. ANS: ✔- B. They must clearly state your status as an Arkansas licensee. The commission has requested that Samuel, a broker in Vilonia, produce evidence that all the forms he uses were ______. A. Approved by a licensed Arkansas attorney prior to use B. Leveraged from another state C. Proofread thoroughly and contain no typos D. Written by the firm's principal broker ANS: ✔- A. Approved by a licensed Arkansas attorney prior to use Joe is anxious for his new property manager, Emory, to get started. However, Emory tells Joe that before she can do anything, they have to ______. A. Complete a verbal contract over the phone B. Draw up a tenant agreement C. Not engage in a transaction with their own principal broker D. Use their skills and knowledge to advocate for themselves in the transaction ANS: ✔- B. Disclose their status as a licensee Which of these statements describes the purpose of agency disclosures in Arkansas? A. To advertise the services of a brokerage B. To compete effectively with other brokerages C. To protect consumers by keeping them informed D. To protect licensees from liability ANS: ✔- C. To protect consumers by keeping them informed Raymond wants to comply with Arkansas law, so he always retains records related to a transaction for at least _____. A. Five years B. Seven years C. Three years D. Two years ANS: ✔- C. Three years State law requires licensees to keep all transaction documents, listing agreements, sales contracts, etc., for three years. AREC has determined Mateo is in violation of Arkansas' license law. Which of the following are possible disciplinary actions that may be imposed on him as a result of the license law violation? A. Education, damages, or suspension B. Education, suspension, or imprisonment C. Fines, education, or community service D. Imprisonment, fines, or community service ANS: ✔- B. Education, suspension, or imprisonment Monty is advertising a number of listings in the local Paragould newspaper and includes the fair housing logo in the ad. What else is required? A. A link to his firm's fair housing policy B. A link to the Housing and Urban Development Fair Housing site C. The correct colors D. The verbiage, "Equal Opportunity Housing" ANS: ✔- D. The verbiage, "Equal Opportunity Housing" The fair housing logo must be used in conjunction with the "equal opportunity housing" statement. Tamron is hosting an open house for a listing in which she represents the seller. During the open house, a buyer customer asks Tamron for her opinion on a real estate-related topic. Tamron provides the buyer with a few pieces of advice. What best describes this situation? A. Tamron acted appropriately during the open house. B. Tamron appropriately displayed her duty of reasonable skill and care to her client. C. Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party. D. Tamron should not have talked to any buyer customers during the open house. ANS: ✔- C. Tamron may have unintentionally created a dual agency situation by giving a customer advice while representing the other party. Dual agency can occur unintentionally by the actions an agent takes with both the buyer and seller. You used REALTOR® on your business card although your membership in NAR expired last year and you didn't renew it. Under Arkansas law, what type of violation is this? A. Exerting undue influence B. Failure to supervise C. Undisclosed compensation D. Untruthful advertising ANS: ✔- D. Untruthful advertising broker serves as the consumer's agent Licensee Paul was found guilty of not disclosing agency relationship options for all real estate transactions. As a result, the Arkansas Real Estate Commission has the authority to impose a fine, revoke or suspend his license, and ______. A. Place Paul on probation and require a letter of accommodation from the licensee's broker B. Require additional education C. Require Paul to serve as an unpaid assistant for one year D. Sentence Paul to community service ANS: ✔- B. Require additional education Jim has bought and sold several of his own properties in Fayetteville and is considering getting his salesperson's license, but first, he'll need to successfully pass the pre-licensing education requirements. Who or what entity sets the real estate education requirements for all Arkansas licensees? A. The Arkansas Real Estate Commission (AREC) B. The Arkansas Real Estate Commission executive director C. The Arkansas REALTORS® Association D. The National Association of REALTORS® ANS: ✔- A. The Arkansas Real Estate Commission (AREC) Little Rock Realty is closing their operations. Louis is the sole principal broker for the firm. What happens to the transaction records from the firm? A. Louis must secure the records in an insured facility designated by the commission. B. Louis will take custody of the records and ensure they are in a secure location. C. Louis will take custody of the records and notify the commission of their storage location. D. Since the firm is closing, it isn't necessary to keep the files. ANS: ✔- C. Louis will take custody of the records and notify the commission of their storage location. Which one of the following positions has authority equal to that of a principal broker? A. An administrative assistant B. An executive broker C. An office manager D. A salesperson ANS: ✔- B. An executive broker Principal brokers in Arkansas may choose to add a designated executive broker to the staff, but the commission needs to be notified. Both executive and principal brokers have a broker's license, however, the principal broker has the final authority. Seller Ahmed wants to waive some of the duties his Arkansas real estate agent owes him. How can he do this? A. Ahmed and his agent must make the waiver of duties statement part of the purchase contract. B. Ahmed and the agent must make the waiver of duties statement part of their agency agreement. C. Ahmed must tell his agent at some point during their relationship. D. Ahmed must tell his agent at the beginning of their relationship. ANS: ✔- B. Ahmed and the agent must make the waiver of duties statement part of their agency agreement. What type of record contains information about all money received and spent related to a property? A. Cash receipt B. Owner ledger C. Property management agreement D. Tenant ledger ANS: ✔- B. Owner ledger Wyatt is a licensed broker and an appointed member of the Arkansas Real Estate Commission. All of the following are a part of his duties and responsibilities as a member of the commission EXCEPT ____. A. Investigating complaints against real estate clients C. Hold the funds in the firm's operating account D. Negotiate directly with the buyer and seller in case of earnest money disputes ANS: ✔- A. Abide by Arkansas license laws related to trust funds Jasmine, a salesperson in the firm's Morrilton office, needs someone to perform a contract review before submitting it to her clients. Jack, another salesperson in the office, Marsha, one of the firm's brokers, and Atticus, the office's designated executive broker, are currently in the office. Who should Jasmine have review the contract? A. Atticus B. Jack C. Jasmine should review her own contracts. D. Marsha ANS: ✔- A. Atticus What is the first thing that must be done after the commission receives a complaint? A. It must begin reviewing the evidence and investigating the complaint. B. It must decide whether the commission has the authority to investigate. C. It must send a copy of the complaint to the licensee in question (the respondent). D. It must start conducting interviews with the complainant, the respondent, and witnesses. ANS: ✔- B. It must decide whether the commission has the authority to investigate. Once the commission receives a complaint, it reviews the documentation to determine whether it has the authority to investigate. If the commission can't investigate, the complaint may be dismissed. Orla represents the seller, and Pardeep, an agent from a different Arkansas real estate firm, represents the buyer in the same transaction. What type of agency relationship does Orla have with her client? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency ANS: ✔- C. Seller agency Listing agents in Arkansas under an agency agreement are expected to have ______ and are expected to be well informed about any material facts that would be important to their clients. A. Appraisal training B. Good faith C. Knowledge of property D. License law education ANS: ✔- C. Knowledge of property Listing agents under agreement should have knowledge of property and make a reasonable effort to learn about every property and be well informed of each property's condition and any material facts that would be important to clients. Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her? A. Confidentiality B. Honesty and fairness C. Negotiation of the best price D. Undivided loyalty ANS: ✔- B. Honesty and fairness You're an Arkansas licensee representing Abe and Ben in a dual agency situation. Abe tells you something that would give Ben a distinct advantage if he knew. Do you tell Ben? A. No, because agents can't share information with their clients. B. No, because it's hearsay. C. No, because you can't share one client's confidential information with another client. D. Yes, because Ben is your client and has a right to know. ANS: ✔- C. No, because you can't share one client's confidential information with another client. Licensee Jude is representing Christian in the sale of his property in Fort Smith to Roberta, the buyer customer. Which of these statements is true? A. Although Jude has an obligation of absolute fidelity to Christian, this does not relieve him of his obligation of dealing honestly with Roberta. B. Jude has an obligation of absolute fidelity to the interest of his customer, Roberta. C. Jude has been relieved from his obligation of dealing honestly with Roberta because she is not his client. D. Jude is not required to protect and promote the interests of Christian, his client. ANS: ✔- A. Although Jude has an obligation of absolute fidelity to Christian, this does not relieve him of his obligation of dealing honestly with Roberta. What's one benefit to affiliating with a broker in Arkansas? A. Increased liability B. Lack of administrative support C. Split commission with the broker. D. Training ANS: ✔- D. Training When an Arkansas licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? A. The licensee isn't permitted to list other properties for sale. B. The licensee is permitted to list other properties for sale as long as they're not competing properties. C. The licensee is permitted to list other properties for sale, even if they're competing properties. D. The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties. ANS: ✔- C. The licensee is permitted to list other properties for sale, even if they're competing properties. Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent ANS: ✔- B. A dual agent Hanna is an Arkansas licensee who represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency ANS: ✔- A. Buyer agency What is the maximum amount that a person can receive from the Arkansas Real Estate Recovery Fund? A. $15,000 B. $25,000 C. $40,000 D. $5,000 ANS: ✔- B. $25,000 Which of the following is an Arkansas buyer's agent's task or duty? A. Advocating for the seller B. Negotiating for the seller C. Representing the buyer's interests D. Reviewing transactional documents with the seller ANS: ✔- C. Representing the buyer's interests Michael's an Arkansas salesperson who plans to keep his license active next year. He submitted his complete renewal application to AREC prior to September 30. How much did he pay in renewal application fees? Licenses that aren't renewed by the deadline each year are _____. A. Active B. Expired C. Revoked D. Transferred ANS: ✔- B. Expired Property manager Tom is managing a large rental property for Mrs. Battson in North Little Rock. One of the tenants, Harriett, has a dead bolt lock that is not functioning. The person responsible for providing a new lock is ______. A. Harriett B. Mrs. Battson C. The janitor D. Tom ANS: ✔- D. Tom The commission is responsible for managing all aspects of real estate education, EXCEPT _____. A. Advertising B. Instructors C. Required course topics D. Requirements ANS: ✔- A. Advertising Jane is renewing her broker's license this year. What is the largest amount she may have to pay into the recovery fund when she submits her renewal application? A. $15 B. $20 C. $25 D. $30 ANS: ✔- C. $25 Which of the following is true about records retention in Arkansas? A. You should maintain all property management records for at least three years. B. You should maintain tax records for no longer than one year. C. You should maintain transactional records for at least five years, and supplementary information for one year. D. You should maintain transactional records for no longer than one year. ANS: ✔- A. You should maintain all property management records for at least three years. Which of the following is NOT something the commission has the authority to do to enforce the Arkansas Time-Share Act? A. Amend and repeal rules. B. Impose suspensions against developers. C. Incarcerate developers guilty of violating the act. D. Set fees and penalties. ANS: ✔- C. Incarcerate developers guilty of violating the act. Madeara's been notified that her records are being examined. What entity is responsible for performing the examination of records to ensure her firm's in compliance with Arkansas regulations? A. The Arkansas Association of REALTORS® B. The Arkansas Department of Revenue C. The Arkansas Real Estate Commission D. The Department of Justice ANS: ✔- C. The Arkansas Real Estate Commission Seller Amy wants Arkansas licensee Kevin to represent her as a listing agent, and she wants to waive some agency duties. How can she do this? ✔- D. The renewal license amount for a broker plus an additional late fee Gemma's seller client, Hugo, is selling his house in Benton. As Hugo's seller agent, Gemma has several tasks to perform for him. One of these tasks is to ______. A. Advise him on the property conditions he shouldn't disclose to the buyer B. Communicate all offers and counter-offers to the seller C. Disclose to Hugo that if the property doesn't sell within 60 days, the asking price must be lowered D. Ensure an implied agency agreement is in place ANS: ✔- B. Communicate all offers and counter-offers to the seller Bruce is meeting with his seller client in Ozark to give her a copy of the real estate contract. Prior to their meeting, Bruce's supervising broker Maurice should ______. A. Assign his administrative assistant to review the contract thoroughly B. Obtain a commission member's signature on the contract C. Remind Bruce that he will need to sign the contract after closing D. Review and sign the real estate contract before it is submitted to the seller ANS: ✔- D. Review and sign the real estate contract before it is submitted to the seller Which of the following people can hold a broker's license in Arkansas? A. An unlicensed person who petitions the real estate commissioner B. A person with a new real estate license C. A person with one year of experience as a licensee D. A person with two years of experience as a licensee ANS: ✔- D. A person with two years of experience as a licensee Carlton, a salesperson, received escrow money for a transaction the day the contract had been signed by both parties. By Arkansas law, within how many days must the funds be deposited into the firm's trust account if Carlton's clients agreed his broker will manage escrow? A. 10 days B. Five days C. Three days D. Two days ANS: ✔- C. Three days What is the Arkansas recovery fund's maximum per-licensee liability? A. $25,000 B. $50,000 C. $75,000 D. $90,000 ANS: ✔- C. $75,000 The maximum amount of recovery fund licensee liability per transaction is $75,000. Who or what entity funds the Arkansas Real Estate Recovery Fund? A. All Arkansas licensees B. License law violators C. Real estate clients D. The commission ANS: ✔- A. All Arkansas licensees Arkansas real estate licenses are good for _____ year(s). A. Four B. One C. Three D. Two ANS: ✔- B. One Buyer Alison wants to waive some of the duties her agent, Huck, owes her. Which D. Within two business weeks of receipt ANS: ✔- A. Immediately Escrow funds must be delivered to the broker immediately. Once the contract is signed, the broker has three days to deposit them in the firm's trust account, deliver them to an escrow agent, or deposit them according to the parties' agreement. Doug is buying a house from Julie in Pea Ridge. Doug is represented by Kyle, while Julie is represented by Mark. Jessica is Kyle's principal broker, and Chelsea is Mark's. In addition to both parties, who must sign the sales contract? A. Kyle and Jessica B. Kyle and Mark C. Kyle, Mark, Jessica, and Chelsea D. Mark and Chelsea ANS: ✔- C. Kyle, Mark, Jessica, and Chelsea Raymond, a licensee in Russellville, wants to be sure to comply with Arkansas law, so he always retains records related to a transaction for at least _____. A. Five years B. Seven years C. Three years D. Two years ANS: ✔- C. Three years Arkansas licensee Ken is so excited to get his first listing that he can hardly wait to start marketing the property. The owners, Buck and Sally Henson, are coming in tomorrow morning to sign the listing agreement. Ken, whose motto is "No time like the present," immediately put a for sale sign on the Hensons' lawn. Which of the following is true of this situation? A. It's okay for Ken to put up the sign early, as long as he doesn't start formally marketing the property until after the Hensons sign the agreement. B. Ken can do this only with his broker's permission. C. Ken can only place a for sale sign on a property when a listing agreement is in place unless the owner authorizes it. D. Ken is acting within the law and within the scope of his duties. ANS: ✔- C. Ken can only place a for sale sign on a property when a listing agreement is in place unless the owner authorizes it. Arkansas escrow agent Norman received the earnest money deposit from his clients Bud and Barbara on Friday, January 6, the day the contract was signed by both parties. He must deposit the earnest money by the end of what day? A. Friday, January 13 B. Friday, January 6 C. Monday, January 9 D. Tuesday, January 10 ANS: ✔- D. Tuesday, January 10 The escrow agent is required to deposit earnest money within three business days after the contract has been signed by both parties unless the parties have come to agreement of a different deadline. Which of these documents provides appropriate agency disclosure? A. Agency Representation Disclosure form B. Consent for Dual Agency form C. Dual Agency Within a Team form D. Understanding Whom Real Estate Agents Represent form ANS: ✔- A. Agency Representation Disclosure form A licensee must submit a formal report to the commission within _____ days of being convicted of a crime or pleading guilty/no contest to a crime. A. 30 B. 45 C. 60 D. 90 ANS: ✔- A. 30 Sara is your buyer customer. She doesn't want to sign a buyer agency agreement. What duty do you owe her? A. Confidentiality her research and provides her estimate, what term is she allowed to use to describe her findings? A. Appraisal B. Appraised value C. Broker price opinion D. Market value ANS: ✔- C. Broker price opinion Which laws enforced by the commission apply specifically to developers and agents of developers? A. Arkansas Real Estate License Law B. Commission Regulations C. The Arkansas Time-Share Act D. The National Association of REALTORS® Code of Ethics ANS: ✔- C. The Arkansas Time-Share Act Outside of enforcing license law, the Arkansas Real Estate Commission is also charged with enforcing the Arkansas Time-Share Act, which applies to developers and their agents. Angie is a licensed timeshare developer in Arkansas. As she begins the process of submitting her time-share plans and registration, which of the following is NOT correct? A. If she makes any amendments to her registration, she'll have 30 days to inform the commission. B. She must submit an application for all time-share plans to the commission. C. She needs to submit the name, address, and phone number for each agent associated with the time-share plan. D. She will need to pay the commission various registration fees. ANS: ✔- A. If she makes any amendments to her registration, she'll have 30 days to inform the commission. Jason has been found guilty of fraudulently handling money for several of his clients. Four of his previous clients have been awarded judgments of $15,000, $20,000, $40,000, and $55,000, respectively. What is the maximum total reimbursement that could the Arkansas Real Estate Recovery Fund could pay out for Jason's fraudulent activities? A. $130,000 B. $25,000 C. $75,000 D. $90,000 ANS: ✔- C. $75,000 Brady is a new real estate licensee in Arkansas. If you were advising him, you'd tell him that membership in NAR—or any of its state/local associations—is _____________. A. Exclusive B. Free C. Required D. Voluntary ANS: ✔- D. Voluntary If you (as an Arkansas licensee) represent the buyer and seller in the same transaction, what type of agency relationship do you have with your clients? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency ANS: ✔- D. Single-licensee dual agency Which of the following Arkansas licensees are allowed to engage in real estate activities with another broker without their principal or executive broker's permission? A. Associate brokers B. Executive brokers C. None B. Order jail time C. Refer the case to the state attorney for criminal prosecution D. Revoke or suspend a licensee's license ANS: ✔- D. Revoke or suspend a licensee's license Property manager Jack just took on a new client in Rogers. In order to build a good relationship, Jack should ______. A. Ignore state laws in favor of client interests B. Keep the property owner informed C. Make tenant interests his primary concern D. Reply to property owner calls at his leisure ANS: ✔- B. Keep the property owner informed In Arkansas, which of these situations demonstrates illegal dual agency? A. At an open house Thomas is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Thomas waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer. B. Jarrod represents the seller, Juan. A buyer, Alaina, approaches Jarrod about representing her in the purchase of Juan's house. Jarrod obtains Juan and Alaina's consent to dual agency. C. Kady's firm uses representation agreements that, when signed, provide consent to dual licensee dual agency. Kady's buyer makes an offer on one of Kady's colleague's listings. D. Levi's customer, Renee, wants to make an offer on Levi's seller client's home. Levi presents Renee's offer to his client. ANS: ✔- A. At an open house Thomas is holding for his client, Rod, a buyer says she wants to make an offer. She details her situation; Thomas waits until she finishes and then suggests that she offer a non-refundable earnest money deposit to strengthen her offer. Jennifer is selling her property in Little Rock. She has hired Larry as her agent. After the property is listed, Jane brings her client Andrew to see the property, which Andrew is interested in purchasing. Who is Larry in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent ANS: ✔- C. A seller's agent Licensee Kent has an exclusive written agreement with June, his landlord client. What type of agency relationship do they have? A. Buyer agency B. Illegal C. Seller agency D. Sub-agency ANS: ✔- C. Seller agency Under what circumstances can a broker in Arkansas be held liable for not supervising a licensee? A. A lawsuit is brought against the broker's licensee due to misconduct. B. The licensee got a traffic ticket while conducting real estate business for the firm. C. The licensee knew that a licensee from another firm had stolen a customer. D. The licensee unintentionally mispriced a property. ANS: ✔- A. A lawsuit is brought against the broker's licensee due to misconduct. When an Arkansas licensee represents a seller, which one of the following statements is true about the licensee's ability to list other properties that are for sale? A. The licensee isn't permitted to list other properties for sale. B. The licensee is permitted to list other properties for sale as long as they're not competing properties. C. The licensee is permitted to list other properties for sale, even if they're competing properties. D. The licensee must list the seller's property only for the first 90 days, after which the licensee may list other properties. ANS: ✔- C. The licensee is permitted to list other properties for sale, even if they're competing properties. C. The name and signature of the person who prepared the receipt D. The tenant's name ANS: ✔- A. A bank-generated electronic tracking number A cash receipt should not contain a tracking number, as the payment would have been made in cash rather than by check or another trackable payment method. Charlotte is selling her farm in Lowell. What responsibility does her selling agent, Oliver, have to her? A. Advocate for and ensure the sale is profitable for Charlotte. B. Advocate for Charlotte and help present the property in the best light, even if it means covering up material defects. C. Ensure the sale is profitable for Charlotte. D. Seek a sale at the best price at terms acceptable to Charlotte. ANS: ✔- D. Seek a sale at the best price at terms acceptable to Charlotte. If you're selling your personal real estate, which of the following is true of any advertisements that you produce? A. They must appear as any other listing's ad and not include anything about you or your status as a licensee. B. They must clearly state your status as an Arkansas licensee. C. They must contain the words "principal transaction" in the title. D. They must include your photo. ANS: ✔- B. They must clearly state your status as an Arkansas licensee. Nathan is placing a listing ad for a soon-to-be-built expensive home in a gated community in Blytheville. He includes the words "exclusive" and "ultra- conservative community" in his ad. Is he in danger of violating Fair Housing Law? A. No, as long as the developers have used the same terms to describe the development. B. No, because the terms are a true characterization of the neighborhood and the property C. Yes, because it implies that the listing is suitable only for a particular type of buyer. D. Yes, unless the developers specified that he use these terms in all marketing tools. ANS: ✔- C. Yes, because it implies that the listing is suitable only for a particular type of buyer. Who must protect the Ayesha's best interests during the negotiation of a sales contract for her property in Searcy? A. AREC B. Her seller agent C. The buyer D. The buyer's agent ANS: ✔- B. Her seller agent Hanna is an Arkansas licensee who represents the buyer, and Hank, an agent from a different firm, represents the seller in the same transaction. What type of agency relationship does Hanna have with her client? A. Buyer agency B. Dual-licensee dual agency C. Seller agency D. Single-licensee dual agency ANS: ✔- A. Buyer agency Arkansas Real Estate Commission regulations require any contract for real property to be ______. A. Implied B. In writing C. Notarized D. Verbal ANS: ✔- B. In writing Arkansas broker, Elios, is required to have all agreements regarding real estate in writing in EXCEPT for which one? A. Closing statements Which option is of the most concern to Arkansas licensees and advertising when it comes to the Federal Trade Commission? A. Excessive advertising costs B. Location of ads C. Misleading ads D. Paper waste ANS: ✔- C. Misleading ads What is the primary purpose of a BPO? A. To help buyers determine how much to offer for a property. B. To help insurers determine the amount of liability insurance to place on a property. C. To help lenders determine the potential sales price for a property. D. To help sellers determine an appropriate listing price. ANS: ✔- C. To help lenders determine the potential sales price for a property. Arkansas sales transaction trust account changes can't be made prior to closing without what? A. Written agreement from both the buyer and seller B. Written permission from the bank's account manager C. Written permission from the designated broker D. Written release from the buyer ANS: ✔- A. Written agreement from both the buyer and seller Cami is a property manager for a four-unit property in Bentonville. The property owner asks Cami to maintain an umbrella policy as part of her duties. Cami lets her know this is one of a few tasks she can't handle. Which of the following describes the duty Cami is referring to? A. Handling any home warranties B. Maintaining insurance policies C. Making mortgage payments D. Paying property taxes ANS: ✔- B. Maintaining insurance policies Jill is selling her property and hired David as her agent. David brings another client, Kirk, to see the property, which Kirk is interested in purchasing. What kind of agent is David acting as in this scenario? A. A buyer's agent B. A dual agent C. A seller's agent D. A sub-agent ANS: ✔- B. A dual agent In Arkansas, when may licensed salespersons work independently from their principal or executive brokers? A. At any time B. Never C. Only with the broker's permission D. When the commission allows it. ANS: ✔- C. Only with the broker's permission Licensed salespersons in Arkansas must always get permission from their principal broker or executive broker before working independently or with another broker. In Arkansas, the minimum length of time you should maintain copies of transactional documents is _____. A. Five years B. Seven years C. Three years D. Two years ANS: ✔- C. Three years In Arkansas, the property management ______ cements the agency relationship disbursements the broker made, bank statements, and copies of bank reconciliations ANS: ✔- D. Detailed records of all funds coming into the broker's possession, all disbursements the broker made, bank statements, and copies of bank reconciliations If Harley, a buyer looking at a property in Mena, were given misinformation about the property by Bentley, his buyer agent, who is responsible? A. Bentley B. Harley C. Seller D. Seller's agent ANS: ✔- A. Bentley All of the following can be found in an Arkansas property management agreement EXCEPT ______. A. Contact information for the tenant B. The address of the property that is being managed C. The duration of the agreement D. The property manager's compensation terms ANS: ✔- A. Contact information for the tenant Licensee Paul was found guilty of not disclosing agency relationship options for all real estate transactions. As a result, the Arkansas Real Estate Commission has the authority to impose a fine, revoke or suspend his license, and ______. A. Place Paul on probation and require a letter of accommodation from the licensee's broker B. Require additional education C. Require Paul to serve as an unpaid assistant for one year D. Sentence Paul to community service ANS: ✔- B. Require additional education In Arkansas, who has an obligation to be knowledgeable about the real estate market conditions and property pricing for the seller client? A. Buyer B. Buyer's agent C. Seller D. Seller's agent ANS: ✔- D. Seller's agent Clarence is an Arkansas broker who's performing his monthly trust account reconciliation. He's compared his trust account bank statement balance to the total amounts deposited into the account and the disbursements made. How should these numbers compare? A. His bank statement should match his detailed records of all funds coming into his possession and all disbursements made by him. B. The amount should be larger than the bank balance. C. The amounts should include interest that doesn't show up on the bank statement. D. The amount totaling the deposits and disbursements should be smaller than the bank balance. ANS: ✔- A. His bank statement should match his detailed records of all funds coming into his possession and all disbursements made by him. In Arkansas, stating or implying that property values may deteriorate because members of a specific class are moving into or out of a neighborhood is called ______. A. Blockbusting B. Commingling C. Redlining D. Steering ANS: ✔- A. Blockbusting Which of the following statements is true regarding the expiration date of a written sales contract in Arkansas? A. All Arkansas sales contracts must include an expiration date. B. All contracts are automatically renewed each year.