Free AR-RE-B Practice Questions

Question 1

Following a disciplinary hearing, the Arkansas Real Estate Commission orders a broker to pay $34,000 in actual compensatory damages arising from one continuing series of violations. The broker timely appeals to circuit court and pays nothing. Thirty-one days after the Commission's final order, the claimant requests payment from the Real Estate Recovery Fund. How should the request be handled?

Accepted Answer

Defer Recovery Fund payment until the appeal is finally resolved

Answer

Pay $25,000 now because the 30-day nonpayment period has elapsed

Answer

Deny the claim permanently because an appeal forfeits Recovery Fund eligibility

Answer

Pay the entire $34,000 now because the award contains only compensatory damages

Question 2

A licensed property-management firm pays an unlicensed employee only a fixed hourly wage. Acting under the broker's direct written instructions, which assignment may the employee perform?

Accepted Answer

Show a specified unit and assist with a preprinted lease whose terms were fixed in advance by the broker or owner

Answer

Negotiate a lower security deposit after comparing the applicant's credit report with firm criteria

Answer

Receive a transaction bonus each time an applicant signs a lease

Answer

Independently revise a lease clause when an applicant objects to the broker-approved language

Question 3

An Arkansas broker received an initial license four months ago and has not completed the required 30-hour broker post-license course. The license is active, and the firm wants to appoint this broker as its executive broker immediately. What must occur before the appointment?

Accepted Answer

The broker must complete the course and file proof with AREC

Answer

The principal broker must sign a temporary supervision agreement

Answer

The broker may serve until the six-month education deadline arrives

Answer

The broker must surrender the license and cease all brokerage activity

Question 4

At an Arkansas real-estate auction advertised and contracted as with reserve, the seller rejects the high bid and directs the auctioneer to withdraw the property seconds before the auctioneer announces completion. Which statement governs?

Accepted Answer

Reserve property may be withdrawn before the auctioneer announces completion

Answer

The seller must accept because a qualified bid converts every auction into an absolute auction

Answer

Withdrawal is allowed only when no bid was received within a reasonable time

Answer

The high bid formed a contract when made, so the seller may only pursue the bidder for breach

Question 5

An applicant meets all noncredit FHA requirements and has a qualifying credit score of 570. The applicant proposes a 3.5% down payment. Assume HUD's baseline standards and no stricter lender overlay. Which underwriting conclusion follows?

Accepted Answer

Limit the loan to 90% LTV, requiring a minimum 10% down payment

Answer

Approve 3.5% down because FHA insurance makes the score irrelevant to the minimum investment

Answer

Require 5% down because 570 falls between the two FHA credit-score tiers

Answer

Reject the applicant because every FHA score below 580 is ineligible

Question 6

An owner lives in one unit of a four-unit building that is not qualified housing for older persons. She asks a broker to advertise another unit as adults only, relying on the owner-occupied small-building exemption. What should the broker explain?

Accepted Answer

The advertisement is prohibited; the owner-occupied small-building exemption does not override § 3604(c)

Answer

The wording is permitted if the owner personally selects the eventual tenant

Answer

The wording is permitted when the Equal Housing Opportunity logo appears beside it

Answer

The broker must end the engagement and report the owner before discussing compliant wording

Question 7

During a monthly trust-account reconciliation, subsidiary ledgers show $14,600 in earnest money, $9,250 in security deposits, and $3,500 in undisbursed rent. The account also identifies $50 of principal-broker funds for the bank minimum and an $80 service-charge reserve equal to four months of charges. The adjusted bank balance is $27,430. How should the principal broker classify and address the discrepancy?

Accepted Answer

Record a $50 shortage, investigate its cause, and promptly correct the account or its records

Answer

Report no variance because the adjusted balance covers all money belonging to clients

Answer

Treat the account as having an $80 excess and transfer that amount to operating funds

Answer

Record a $30 excess after recognizing the bank-minimum funds but disregarding the service-charge reserve

Question 8

On Thursday, an affiliated salesperson receives a $6,000 earnest-money check with a buyer's signed offer. The seller signs the offer on Friday. Which handling sequence is correct?

Accepted Answer

Deliver it immediately to the principal broker; the broker's three-day deadline begins after both parties sign

Answer

The salesperson may keep the check until Friday, then deliver it to the principal broker before closing

Answer

The salesperson should return the check because trust funds cannot be accepted before seller acceptance

Answer

The salesperson must deposit the check into a separate personal escrow account on Thursday

Question 9

An affiliated Arkansas licensee advertises a personally owned duplex. The online advertisement prominently displays the firm's full approved name and states the actual offering price. Before entering a sales contract with a buyer, what additional step is required?

Accepted Answer

Make written license-and-own-account disclosure before contract execution

Answer

Transfer the duplex to a separate entity before negotiating with any buyer

Answer

Remove the firm name so the property is not mistaken for a brokerage listing

Answer

Stop marketing the duplex and retain an unrelated firm to handle the sale

Question 10

A principal broker files an AREC designation placing an executive broker in charge of a staffed branch. A trust-account shortage later arises from deposits handled at that branch. Who remains ultimately accountable for the branch's trust activity?

Accepted Answer

The principal broker; delegating branch supervision does not transfer ultimate accountability for trust activity

Answer

The licensee who first received each deposit, because accountability follows the transaction

Answer

The executive broker alone, once AREC accepts the written branch designation

Answer

The depository institution, once each deposit appears on its account statement

Free AR-RE-B Practice Questions

Domain 1: Duties and Authority of the Real Estate Commission 4% of exam

Question 1

Domain 2: Arkansas Statutory Requirements Governing Licensure 10% of exam

Question 2

Question 3

Domain 3: Other Arkansas Statutory Requirements Governing Real Estate 6% of exam

Question 4

Domain 4: Federal Laws Governing Real Estate Activities 10% of exam

Question 5

Question 6

Domain 5: Broker Operations and Responsibilities 18% of exam

Question 7

Question 8

Question 9

Question 10

The rest of the AR-RE-B blueprint

That's 10 of 1,030