Arkansas Real Estate Exam
1,471+ Practice Questions & Answers
Every question includes a detailed explanation. Organized by the 11 topics on the Arkansas real estate salesperson exam.
Arkansas License Law
155 questions- Which state agency is responsible for regulating real estate licensees in Arkansas?
- How many hours of pre-license education must an applicant complete before sitting for the Arkansas salesperson exam?
- The Arkansas real estate licensing exam consists of how many questions, and what is the time limit?
- What is the minimum passing score on the Arkansas real estate licensing exam?
- How often must Arkansas real estate licensees renew their licenses?
- How many hours of continuing education (CE) are required for Arkansas license renewal, and what topic must be included?
- Who is primarily responsible for the actions of all affiliated licensees operating within a real estate firm in Arkansas?
- Under Arkansas license law, trust account funds must be deposited in which type of institution?
- Under Arkansas license law, earnest money received by a licensee must be deposited into a trust account within how many business days?
- Arkansas has a Real Estate Recovery Fund. What is its primary purpose?
- Which of the following advertising practices is PROHIBITED under Arkansas license law?
- A licensee in Arkansas wishes to operate under a name other than her legal name. What must she do?
- Which of the following is grounds for disciplinary action by AREC against a licensee?
- An Arkansas real estate salesperson may receive a commission or compensation from whom?
- When a real estate licensee transfers to a new brokerage in Arkansas, what must happen to their license?
- Which of the following activities requires a real estate license in Arkansas?
- If a licensee's Arkansas real estate license expires and they continue to practice real estate, they are subject to:
- Arkansas license law requires that a written disclosure of agency relationships be provided to a consumer:
- Which of the following best describes an 'inactive' real estate license in Arkansas?
- A salesperson in Arkansas wants to represent a buyer. What is required under Arkansas law?
- How many hours of continuing education must an Arkansas licensee complete each renewal cycle?
- An Arkansas real estate license must be renewed every:
- What is the minimum pre-licensing education requirement for an Arkansas salesperson applicant?
- Which of the following actions requires an Arkansas real estate license?
- The Arkansas Real Estate Commission is empowered to do all of the following EXCEPT:
- An Arkansas licensee who changes their employing broker must:
- Under Arkansas law, a principal broker is responsible for:
- Which of the following is NOT a ground for disciplinary action by AREC?
- An Arkansas broker's trust account must be maintained at:
- Earnest money received by an Arkansas licensee must be deposited into the trust account within:
- The Arkansas Real Estate Recovery Fund provides compensation to:
- After a judgment is paid from the Arkansas Real Estate Recovery Fund, what happens to the licensee?
- A person who performs real estate activities in Arkansas without a license is subject to:
- An Arkansas salesperson's license is issued to:
- Which of the following CE topics is MANDATORY in every Arkansas renewal cycle?
- A broker who fails to renew their license on time in Arkansas may:
- Which of the following individuals is EXEMPT from Arkansas real estate licensing requirements?
- AREC's disciplinary hearing process most closely resembles:
- An Arkansas licensee places their license on inactive status. While inactive, the licensee may:
- Which entity appoints the members of the Arkansas Real Estate Commission?
- An Arkansas broker operating under a fictitious business name (trade name) must:
- A licensed Arkansas salesperson may collect a commission from:
- Under Arkansas law, a broker's duty to maintain transaction records generally extends for:
- Which of the following describes 'commingling' as prohibited in Arkansas?
- A written brokerage agreement is REQUIRED in Arkansas when a broker represents:
- An Arkansas licensee who is convicted of a felony must notify AREC within:
- The primary purpose of the Arkansas Real Estate Commission is to:
- An Arkansas broker who wants to operate as a sole proprietor must hold which license type?
- Which of the following is true about an Arkansas licensee's advertising?
- A salesperson in Arkansas wishes to operate independently without being affiliated with a broker. Under Arkansas law, this is:
- AREC may place a licensee's license on probation, which means the licensee:
- Which of the following best describes an 'associate broker' in Arkansas?
- Under Arkansas law, when must a licensee provide an agency disclosure to a prospective buyer or seller?
- A licensee who wishes to act as a property manager in Arkansas for third-party owners:
- If a consumer files a complaint against an Arkansas licensee, AREC will first:
- How many hours of pre-license education are required for an Arkansas broker applicant?
- An Arkansas real estate salesperson license is valid for how long before renewal is required?
- How many hours of continuing education must an Arkansas licensee complete each two-year renewal period?
- The Arkansas Real Estate Commission (AREC) is composed of how many members?
- What is the minimum age requirement to obtain a real estate salesperson license in Arkansas?
- Under Arkansas license law, which of the following activities requires a real estate license?
- In Arkansas, a salesperson applicant who fails the state licensing exam may retake it. How soon may they retake the exam?
- Which of the following is NOT an exemption from Arkansas real estate licensing requirements?
- An Arkansas licensee who wishes to place their license on inactive status must notify whom?
- Under Arkansas law, a broker who operates their own real estate office is called a:
- A licensed Arkansas salesperson who wishes to transfer to a new broker must:
- Arkansas law requires that all real estate trust accounts be maintained at:
- When an Arkansas broker receives earnest money from a buyer, the funds must be deposited:
- Which of the following is grounds for AREC to suspend or revoke a real estate license in Arkansas?
- The Arkansas Real Estate License Law requires that a listing contract be:
- A real estate licensee in Arkansas who performs property management activities must:
- An Arkansas real estate licensee who advertises property must include what in all advertising?
- Under Arkansas law, a real estate license may be placed on inactive status for a maximum of how many years without additional requirements?
- The Arkansas Property Disclosure Act requires sellers of residential property to disclose:
- Under the Arkansas Property Disclosure Act, when must the seller's disclosure be provided to the buyer?
- Under Arkansas license law, a salesperson who acts without a principal broker is guilty of:
- Which of the following educational requirements applies to Arkansas continuing education for licensees?
- AREC may accept a complaint against a licensee from:
- A licensee found guilty of commingling or conversion of client funds by AREC may face:
- An out-of-state licensee who wants to cooperate with an Arkansas licensee on a transaction in Arkansas must:
- What is the maximum civil penalty AREC may impose on a licensee for a single violation of the Arkansas Real Estate License Law?
- An Arkansas real estate salesperson license must be renewed every:
- How many hours of continuing education must an Arkansas salesperson complete each renewal cycle?
- Under Arkansas law, which activity requires a real estate license?
- Which of the following is NOT exempt from Arkansas real estate licensing requirements?
- A licensed Arkansas salesperson wishing to become a broker must first:
- When a salesperson's license is inactive in Arkansas, the licensee may:
- AREC is composed of how many members?
- Under Arkansas license law, a broker who supervises salespersons is primarily responsible for:
- Which statement best describes the Arkansas Real Estate Recovery Fund?
- Which of the following must be included in every Arkansas real estate listing agreement?
- A licensed Arkansas salesperson may receive compensation from:
- AREC has the authority to take which of the following actions against a licensee found guilty of misrepresentation?
- A broker who wishes to operate as an independent broker in Arkansas (without being associated with another broker) must hold a:
- Under AREC rules, trust funds (escrow money) must be:
- The practice of commingling refers to:
- Conversion, as a license law violation, occurs when a licensee:
- In Arkansas, a real estate license becomes inactive if the licensee:
- Which of the following best describes an associate broker in Arkansas?
- Arkansas requires that the Property Condition Disclosure form be completed by:
- The Arkansas Real Estate License Law requires licensees to keep transaction records for a minimum of:
- An Arkansas real estate license applicant must be at least:
- An Arkansas real estate licensee convicted of a felony may have their license:
- Which of the following advertising rules applies to Arkansas real estate licensees?
- A licensee who changes their sponsoring broker in Arkansas must:
- Under Arkansas law, which of the following persons does NOT need a real estate license?
- The purpose of the Arkansas Residential Property Disclosure Act is to:
- AREC rule violations by an Arkansas licensee are governed by:
- An Arkansas salesperson who performs real estate services without an active license is:
- Which activity is explicitly included in the definition of 'real estate' for licensing purposes under Arkansas law?
- When an Arkansas broker retires and surrenders their license, the salespersons associated with that broker must:
- AREC's principal office is located in:
- In Arkansas, which of the following is a ground for AREC to revoke a real estate license?
- A licensee who makes a material misrepresentation to a client is subject to:
- Under Arkansas license law, the term 'broker' specifically includes which of the following?
- Arkansas requires that a newly licensed salesperson complete which post-license education requirement?
- An Arkansas real estate licensee acting as a principal (buying property for themselves) must disclose:
- An Arkansas licensee who wishes to practice in another state under a reciprocal agreement must:
- The Arkansas Real Estate Recovery Fund has a minimum balance requirement. When the fund falls below the minimum, each broker must:
- A buyer's agent receives a bonus from the seller without the buyer's knowledge. This constitutes:
- Under Arkansas license law, when must a broker present an offer to their seller-client?
- An AREC investigation of a licensee begins when:
- A real estate licensee in Arkansas who is convicted of a crime involving fraud or dishonesty must:
- A branch office maintained by an Arkansas broker must:
- Under Arkansas law, an unlicensed assistant employed by a real estate broker may:
- AREC Rule 10.2 specifically addresses:
- A licensee who places earnest money in their personal bank account is guilty of:
- What happens to a real estate license if the licensee moves to a new state permanently?
- Which of the following actions is expressly prohibited under the Arkansas Real Estate License Law?
- The Arkansas Real Estate License Law is found in:
- Which of the following best describes the concept of 'procuring cause' in determining commission entitlement?
- The period during which a prospective buyer is entitled to review disclosures before a binding obligation to purchase under RESPA for certain transactions is:
- Arkansas license law requires a licensee to provide an agency disclosure. When does this obligation arise?
- If a buyer's agent receives compensation from the seller's side (listing broker) via the MLS, and the buyer signed a buyer rep agreement, the agent must:
- AREC requires principal brokers to have a written office policy addressing:
- Under AREC rules, if a broker changes the address of their principal office, they must:
- An Arkansas real estate license is personal and may NOT be:
- Under Arkansas license law, a real estate licensee who acts as a property manager must:
- A salesperson's license in Arkansas is valid ONLY when:
- AREC may place a licensee's license on probation as a disciplinary action. This means the licensee:
- An Arkansas broker who receives a complaint from a client must provide a written response to AREC within:
- A real estate licensee in Arkansas who also holds a mortgage loan originator license must:
- AREC's authority to regulate real estate practitioners derives from:
- A person who receives a finder's fee for introducing a buyer to a seller in Arkansas without holding a real estate license is:
- How does Arkansas define 'real estate' for licensing purposes?
- An Arkansas broker who discovers that a former employee has been forging the broker's signature on documents must:
- Under Arkansas license law, what is the obligation of a licensee when receiving an offer to purchase that contains terms they believe are disadvantageous to their client?
- A real estate license applicant in Arkansas who has been convicted of a felony:
- An Arkansas broker is required to maintain their trust account records for a minimum of:
- Which Arkansas law specifically regulates seller disclosure of residential property conditions?
- Under the Arkansas Residential Property Disclosure Act, which properties are EXEMPT from the disclosure requirement?
- A licensee who fails to complete required continuing education before renewal in Arkansas will:
- AREC imposes the requirement that real estate advertising must be truthful and not misleading. An advertisement that claims a property is in 'move-in ready condition' when the licensee knows it has major structural damage would be:
- If a licensee holds a concurrent license as both a real estate salesperson and a mortgage loan originator (MLO), AREC requires the licensee to:
- Which of the following actions by an Arkansas licensee would MOST likely result in license revocation?
Contracts
153 questions- Under Arkansas's Statute of Frauds, real estate purchase contracts must be:
- Which of the following is NOT an essential element of a valid real estate contract?
- A buyer submits an offer with an earnest money deposit. The seller makes a counteroffer changing the closing date. The original offer is now:
- In a real estate contract, 'time is of the essence' means that:
- A buyer's offer is contingent on obtaining financing. The buyer is unable to qualify for a loan and properly invokes the financing contingency. What happens to the earnest money?
- An option contract in real estate gives the optionee (buyer) the:
- Which clause in a purchase contract allows a seller to continue marketing the property and accept a better offer, giving the original buyer the right to remove a contingency or lose the contract?
- When a buyer defaults on a purchase contract, the seller's remedy of keeping the earnest money as full compensation is known as:
- A contract is considered 'executed' when:
- A listing agreement that automatically renews unless cancelled is known as a(n):
- Which type of listing gives only one broker the right to sell, but allows the owner to sell the property themselves without paying a commission?
- Novation in contract law means:
- Under the Arkansas Statute of Frauds, a contract for the sale of real property must be:
- An offer becomes a binding contract when:
- A seller makes a counteroffer to a buyer's offer. This action:
- Which of the following is NOT a required element for a valid real estate sales contract?
- Earnest money in an Arkansas real estate transaction:
- A buyer includes a financing contingency in their offer. If the buyer is unable to obtain a loan, the contingency allows the buyer to:
- Specific performance as a remedy in a real estate contract dispute means:
- When a buyer defaults on a real estate contract, the seller's most common contractual remedy is to:
- A contract that is 'voidable' differs from a 'void' contract in that a voidable contract:
- A contract entered into under duress is:
- In a real estate contract, 'time is of the essence' means:
- An addendum to a real estate contract is best described as:
- Under the parol evidence rule, prior oral agreements:
- A buyer makes an offer on a property. Before the seller accepts, the buyer changes their mind and withdraws the offer. This is:
- A buyer and seller agree to extend the closing date. To be enforceable, this modification should be:
- A contract for the sale of real property signed by a 16-year-old minor in Arkansas is:
- A 'kick-out clause' in a real estate contract allows the seller to:
- An exclusive right-to-sell listing agreement means the listing broker earns a commission if:
- A buyer includes an inspection contingency giving them 10 days to inspect the property. On day 8, the inspector finds a cracked foundation. The buyer's options typically include:
- Which of the following contracts would be VOID (not merely voidable) under Arkansas law?
- A 'contingency' in a purchase contract functions as a:
- What is the legal effect of 'rescission' of a real estate contract?
- An open listing gives the seller the right to:
- A buyer's offer states it will expire at 5:00 PM on Friday. The seller signs and returns the acceptance at 6:00 PM Friday. This creates:
- Which of the following is NOT a required element of a valid contract?
- Under Arkansas's Statute of Frauds, real estate sales contracts must be:
- A contract in which one party makes a promise in exchange for an act by the other party is called a:
- When both parties to a real estate contract have fully performed all their obligations, the contract is said to be:
- A buyer submits an offer. Before the seller responds, the buyer withdraws the offer. This is an example of:
- An option contract in real estate gives the optionee the:
- When a seller accepts a buyer's offer with changes to the terms, this is considered a:
- Earnest money in an Arkansas real estate contract is best described as:
- A contract that appears valid on its face but can be voided by one of the parties is called:
- In an Arkansas purchase agreement, a contingency clause allows a buyer to:
- Time is of the essence in a real estate contract means:
- A contract that lacks consideration is:
- Which of the following is an example of liquidated damages in a real estate contract?
- When a buyer discovers the seller misrepresented a material fact in a real estate contract, the buyer may:
- Specific performance is a legal remedy in which a court:
- A buyer and seller enter into a contract for the sale of land. Before closing, the seller dies. What happens to the contract?
- An addendum to a real estate contract is:
- An assignment of a real estate contract means:
- In a real estate purchase contract, earnest money is typically held by:
- A lease for more than one year in Arkansas must be:
- Which of the following best describes novation in a real estate contract?
- A real estate contract signed by a minor (under 18) in Arkansas is:
- A 'subject to' clause in a real estate purchase contract typically means:
- Mutual assent in a contract requires:
- An earnest money dispute between buyer and seller in Arkansas is typically resolved by:
- A contract for deed (land contract) is an arrangement where:
- The parol evidence rule provides that:
- When a seller accepts an offer with a right of first refusal, the seller agrees to:
- An executed contract is one where:
- A deed in lieu of foreclosure is when:
- Which of the following is NOT a required element for a valid real estate contract in Arkansas?
- Under the Arkansas Statute of Frauds, real estate contracts must be:
- A counteroffer legally:
- Earnest money in a real estate transaction is best described as:
- A contingency clause in a purchase contract:
- If a buyer defaults on a real estate purchase contract, the seller's typical remedy may include:
- A real estate contract signed by a minor is generally:
- Which type of listing agreement gives the broker the right to a commission regardless of who sells the property?
- Under an exclusive agency listing in Arkansas, the seller retains the right to:
- A bilateral contract is one in which:
- A unilateral contract is one in which:
- The 'time is of the essence' clause in a real estate contract means:
- Specific performance as a legal remedy means the court can:
- Rescission of a contract means:
- An addendum to a real estate contract:
- An amendment to a real estate contract differs from an addendum in that an amendment:
- Which of the following correctly describes a valid offer?
- Consideration in a real estate contract must be:
- An as-is clause in a real estate contract generally means:
- A contract that has been fully performed by both parties is called:
- The parol evidence rule states that:
- A land contract (contract for deed) is an arrangement where:
- Which of the following best describes an earnest money dispute between buyer and seller?
- A 'kick-out clause' (release clause) in a real estate contract allows:
- The right of first refusal gives the holder the right to:
- Novation in real estate contracts means:
- A real estate purchase contract typically becomes void if:
- An open listing allows the seller to:
- A buyer's representation agreement should specify:
- In a real estate contract, 'time is of the essence' most critically affects:
- A real estate contract becomes void if:
- The merger doctrine in real estate contracts states that:
- A contract provision that states that if either party litigates, the loser pays attorney's fees is called a/an:
- An interpleader action is used by a broker when:
- Mutual mistake occurs in a contract when:
- An exculpatory clause in a real estate contract is designed to:
- A 'home warranty' provided in a residential transaction is:
- Which of the following would make a real estate contract voidable?
- The essential difference between a void contract and a voidable contract is:
- An Arkansas real estate purchase contract must be in writing because of:
- Liquidated damages in a real estate contract are:
- A seller accepts an offer and then receives a higher offer before closing. The seller may:
- A buyer makes an offer on a property with a financing contingency. The lender denies the loan. The buyer should:
- An option to purchase is considered which type of contract?
- A seller who accepts a backup offer while already under contract with a buyer should:
- Under the doctrine of equitable conversion, once a real estate purchase contract is signed:
- Which clause in a purchase contract gives the seller the right to continue showing the property while a contingency is pending?
- A home inspection contingency typically gives the buyer the right to:
- A seller who fraudulently misrepresents a material fact to induce a buyer to sign a contract may be subject to:
- Which of the following best describes an escalation clause in a purchase offer?
- The term 'possession date' in a real estate purchase contract refers to:
- A leaseback agreement (seller leaseback) allows the seller to:
- A buyer waives their home inspection contingency. This means:
- A real estate agent preparing a purchase contract for a buyer should be careful not to:
- A real estate contract that is 'executory' means:
- Under the Mailbox Rule, acceptance of a mailed offer is effective:
- An assignment of a real estate contract transfers:
- Which of the following is an example of a 'subject to' clause in a real estate contract?
- Which of the following statements about earnest money is TRUE?
- A seller receives three offers simultaneously. The seller may:
- A seller accepts a buyer's offer. Before the buyer is notified, the seller receives a better offer and calls the original buyer to revoke acceptance. Can the seller revoke?
- In Arkansas, a contract for the sale of real estate must include which of the following to satisfy the Statute of Frauds?
- A seller refuses to sell to the buyer after the contract is signed because they received a better offer. The buyer's MOST likely legal remedy is:
- A 'walk-through' or 'final inspection' before closing gives the buyer the right to:
- The purpose of an earnest money check made payable to the listing broker (rather than the seller) is to:
- An appraisal contingency protects the buyer by:
- A buyer's offer at $350,000 is countered by the seller at $365,000. The buyer then offers $357,000. This is:
- Under the 'doctrine of merger,' which document controls after closing?
- Which statement is true about an 'as-is' sale and seller disclosure in Arkansas?
- A purchase contract typically expires if acceptance is not communicated by the offeror's:
- A seller's disclosure of known defects is important in contract negotiations because:
- Which of the following statements about a lease agreement is TRUE?
- A 'gross lease' structure means that the tenant pays a fixed rent while the landlord pays:
- Which of the following contract provisions is considered unconscionable and likely unenforceable?
- A real estate purchase agreement for new construction typically includes:
- The covenant of seisin in a warranty deed guarantees that:
- An escalation clause that provides the buyer will pay $1,000 above any competing offer up to a maximum of $310,000, when the listing price is $299,000, is designed to:
- A seller's agent learns the buyer's offer contains a financing contingency for an amount lower than the purchase price. The agent should:
- An 'evergreen clause' in a real estate contract automatically:
- Which clause in a commercial lease allows the tenant to expand into additional space as it becomes available?
- A 'co-tenancy clause' in a retail lease provides that:
- An 'exclusivity clause' in a commercial lease prohibits the landlord from:
- In a sale-leaseback transaction, the original property owner:
- A percentage lease in retail requires the tenant to pay:
- The 'natural breakpoint' in a percentage lease is calculated by:
- Subordination, non-disturbance, and attornment (SNDA) agreements in commercial leases are designed to:
- A lease assignment differs from a sublease in that in an assignment:
Finance
148 questions- Arkansas is a 'lien theory' state. This means that when a borrower takes out a mortgage:
- Arkansas uses which security instruments to secure a real estate loan?
- The loan-to-value (LTV) ratio is calculated as:
- Which type of loan is backed by the full faith and credit of the U.S. government and is designed to help veterans purchase homes?
- A buyer obtains an FHA loan. The minimum down payment required is approximately:
- In an adjustable-rate mortgage (ARM), the interest rate adjustment is tied to a financial:
- What is the purpose of the Truth-in-Lending Act (TILA)?
- A mortgage that requires only interest payments for an initial period, after which the full principal becomes due, is known as a:
- Under RESPA (Real Estate Settlement Procedures Act), which of the following is prohibited?
- A buyer's front-end (housing) debt-to-income ratio is calculated by dividing:
- Arkansas is classified as a 'lien theory' state. This means that when a borrower takes out a mortgage:
- In Arkansas, which security instrument transfers bare legal title to a trustee to secure a loan?
- What is the primary purpose of a mortgage or deed of trust?
- A borrower's monthly payment includes PITI. What does the 'I' for insurance refer to?
- An adjustable-rate mortgage (ARM) differs from a fixed-rate mortgage in that the ARM's:
- A loan-to-value (LTV) ratio of 80% on a $300,000 property means the loan amount is:
- Private mortgage insurance (PMI) is typically required when the buyer's down payment is:
- Discount points paid at closing are used to:
- Under the Truth in Lending Act (TILA), the Annual Percentage Rate (APR) reflects:
- RESPA (Real Estate Settlement Procedures Act) prohibits:
- A conventional loan is best described as a mortgage that is:
- A VA loan guarantee benefits the veteran borrower primarily by:
- A buyer assumes the seller's existing mortgage. The buyer is now primarily liable for the loan, but if the lender did not release the seller, the seller's exposure is described as:
- Amortization of a mortgage loan means:
- A seller 'takes back' a purchase money mortgage from the buyer. This means the seller:
- A due-on-sale clause in a mortgage requires the borrower to:
- An FHA loan requires borrowers to pay a Mortgage Insurance Premium (MIP). This insurance protects:
- Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny credit based on:
- A borrower's debt-to-income (DTI) ratio is calculated by dividing:
- A property sells for $180,000. The buyer obtains an 80% LTV loan. How much is the required down payment?
- Which type of mortgage loan is insured by the Federal Housing Administration (FHA)?
- What is the minimum down payment typically required for an FHA-insured mortgage?
- A loan in which the interest rate changes periodically based on an index is called a(n):
- The Truth in Lending Act (TILA) requires lenders to disclose the loan's:
- Private Mortgage Insurance (PMI) is typically required when the buyer's down payment is less than:
- The process of gradually reducing a loan balance through regular principal and interest payments is called:
- Which federal law prohibits certain loan terms such as prepayment penalties and balloon payments on high-cost mortgage loans?
- A balloon mortgage is best described as a loan that:
- RESPA (Real Estate Settlement Procedures Act) primarily regulates:
- The loan-to-value ratio (LTV) is calculated as:
- What is the purpose of a loan origination fee?
- One discount point paid on a mortgage loan is equal to:
- A VA loan is guaranteed by the:
- The secondary mortgage market involves:
- A purchase money mortgage is one where:
- The Equal Credit Opportunity Act (ECOA) requires lenders to:
- A deed of trust (trust deed) differs from a mortgage in that it involves:
- Fannie Mae (FNMA) is best described as:
- A wraparound mortgage is one where:
- Which federal agency regulates banks that are members of the Federal Reserve System?
- The debt-to-income (DTI) ratio is used by lenders to:
- A USDA Rural Development loan is best described as:
- An interest-only loan is one where:
- Predatory lending involves:
- Mortgage insurance on FHA loans is called:
- A conforming loan is one that:
- A reverse mortgage is designed for homeowners who:
- Regulation Z (Reg Z) is the implementing regulation for which federal law?
- Which of the following best describes a bridge loan?
- Which document itemizes all the costs, fees, and credits in a real estate transaction at closing?
- What is the primary purpose of the Truth in Lending Act (TILA)?
- A conventional mortgage loan is one that:
- Private Mortgage Insurance (PMI) is typically required when:
- An adjustable-rate mortgage (ARM) is characterized by:
- The loan-to-value (LTV) ratio is calculated by:
- A buyer assumes a seller's existing mortgage. This means the buyer:
- Which federal law prohibits discriminatory lending practices based on neighborhood characteristics?
- The debt-to-income (DTI) ratio used by lenders compares:
- A mortgage loan point is equal to:
- RESPA (Real Estate Settlement Procedures Act) primarily governs:
- A fully amortizing mortgage loan is one where:
- A balloon mortgage requires the borrower to:
- An FHA loan requires a minimum down payment of:
- A VA loan guaranty enables eligible veterans to:
- The secondary mortgage market primarily involves:
- Mortgage escrow accounts are used by lenders to:
- Which of the following best describes a home equity line of credit (HELOC)?
- What is the purpose of a mortgage commitment letter?
- A reverse mortgage is designed for:
- Hypothecation means pledging property as collateral for a debt without:
- A deed of trust differs from a mortgage primarily because:
- An interest-only loan requires the borrower to:
- What is a 'due-on-sale' clause in a mortgage?
- A graduated payment mortgage (GPM) features:
- Mortgage insurance on an FHA loan is called:
- The Loan Estimate must be provided to a mortgage applicant within:
- Fannie Mae (FNMA) primarily serves the mortgage market by:
- What is a negative amortization loan?
- A wraparound mortgage (all-inclusive trust deed) is a form of seller financing where:
- Which type of mortgage gives the lender a share of the property's appreciation or income in exchange for a below-market interest rate?
- A package mortgage includes:
- A purchase money mortgage (PMM) is one in which:
- The primary market in mortgage lending consists of:
- A bridge loan is used to:
- Which index is commonly used as the basis for adjusting rates on many adjustable-rate mortgages today?
- A buydown is a financing technique where:
- USDA Rural Development loans are designed for:
- A borrower's 'front-end ratio' (housing ratio) compares:
- Which organization insures deposits in federally chartered banks and savings institutions?
- A mortgage banker differs from a mortgage broker in that a mortgage banker:
- Which of the following best describes a 'teaser rate' on an ARM?
- The Good Faith Estimate (GFE) was replaced under TRID by the:
- A prepayment penalty on a mortgage charges the borrower for:
- Which type of mortgage features payments that remain constant but are applied entirely to principal (no interest)?
- A mortgage with a 5/1 ARM structure means the interest rate is fixed for:
- Ginnie Mae (GNMA) primarily supports the mortgage market by:
- An acceleration clause in a mortgage allows the lender to:
- Freddie Mac (FHLMC) was originally created to:
- A borrower has a $200,000 loan at 6% annual interest. The monthly payment is $1,199.10. Of the first month's payment, how much is principal?
- A construction loan is a type of:
- The purpose of the federal Homeowners Protection Act (HPA) is to:
- The annual percentage rate (APR) on a mortgage loan is typically higher than the stated interest rate because APR:
- A lender's 'rate lock' protects the borrower from:
- An impound account (escrow account) maintained by a mortgage servicer is used to:
- The Community Reinvestment Act (CRA) is primarily aimed at:
- A borrower's credit score is used by lenders primarily to:
- The term 'underwater' or 'upside down' on a mortgage means:
- A portfolio loan is one that:
- Which of the following loans is NOT generally subject to the rescission right under TILA?
- The Federal Housing Administration (FHA) was created primarily to:
- A mortgage servicer is responsible for:
- Under what circumstance does a VA loan guarantee entitle a veteran to use their full entitlement for a no-down-payment loan above the standard limit?
- The purpose of an appraisal required by a mortgage lender is primarily to:
- An origination fee on a mortgage loan is charged by the lender for:
- Which of the following best describes a 'home equity loan'?
- In a fixed-rate mortgage, the monthly payment of principal and interest:
- A lender's title insurance protects the lender only up to:
- In what situation would a lender require 'private mortgage insurance' (PMI)?
- The qualified mortgage (QM) rule was established by the Consumer Financial Protection Bureau (CFPB) to:
- The Ability-to-Repay (ATR) rule requires lenders to:
- A 'jumbo loan' is one that:
- In a real estate transaction, 'points' may be used to:
- Which of the following is the most accurate description of 'underwriting' in mortgage lending?
- A 'rate and term refinance' allows a borrower to:
- A 'cash-out refinance' allows a homeowner to:
- Section 32 mortgage loans (High-Cost Mortgages under HOEPA) are restricted because they:
- A mortgage 'servicer' must provide a monthly statement that shows:
- Under Dodd-Frank, lenders are prohibited from incentivizing loan officers with compensation based on:
- A 'blanket mortgage' covers:
- The primary risk to a buyer of assuming a mortgage with a 'due-on-sale' clause is:
- Which of the following is the most accurate statement about hard money loans?
- In mortgage lending, 'seasoning' of funds for a down payment typically requires:
- A 'construction-to-permanent' loan converts:
- An 'assumable mortgage' is one that:
- Which of the following is considered a 'predatory lending' practice?
- What is the purpose of the 'three-day right of rescission' under TILA for certain home equity loans?
- Which entity sets the conforming loan limits for conventional mortgages annually?
- A mortgage loan with a 'teaser rate' of 2% for the first year that then adjusts to a much higher rate is most problematic because:
Property Ownership
146 questions- In Arkansas, a homestead exemption may reduce a property's assessed value for tax purposes by up to:
- Two unmarried people purchase a property together with equal, undivided interests and the right of survivorship. They hold title as:
- Which form of co-ownership does NOT include the right of survivorship?
- A fee simple absolute estate is best described as:
- An easement appurtenant benefits:
- Which type of deed provides the GREATEST protection to the grantee (buyer)?
- Property taxes in Arkansas are paid in:
- A life estate grants the life tenant the right to use and enjoy property:
- Personal property that has been permanently attached to real property and is legally considered real property is known as a:
- The government power of eminent domain allows the government to:
- In Arkansas, the homestead exemption protects a homeowner's primary residence from creditors' claims up to:
- Under joint tenancy in Arkansas, when one joint tenant dies, their interest:
- Which of the four unities (TTIP) is required for joint tenancy but NOT required for tenancy in common?
- A life estate grants the life tenant the right to use and enjoy the property:
- A tenancy in common allows each co-owner to:
- An appurtenant easement benefits:
- The government's power of eminent domain allows it to:
- Adverse possession in Arkansas requires continuous, open, hostile, and exclusive possession for a statutory period. The most commonly cited period in Arkansas is:
- Real property taxes in Arkansas are paid:
- A deed restriction that limits a property to single-family residential use is an example of a:
- A property owner's right to build a fence on the boundary of their property is limited by all of the following EXCEPT:
- A riparian owner in Arkansas has rights relating to:
- Which form of co-ownership is exclusively available to legally married couples in Arkansas?
- Personal property (personalty) becomes a fixture — and thus real property — when it is:
- An easement by prescription is similar to adverse possession but differs in that a prescriptive easement:
- A general lien affects:
- The bundle of legal rights associated with real property ownership includes all of the following EXCEPT the right to:
- When an Arkansas owner dies intestate (without a will) and has no heirs, the property:
- A mechanic's lien in Arkansas is filed by:
- In Arkansas, which type of co-ownership includes the right of survivorship?
- Which type of co-ownership has NO right of survivorship and allows each owner to sell their share independently?
- The four unities required for joint tenancy are:
- A freehold estate that lasts for the life of a specified person is called a:
- The bundle of rights that comes with real property ownership includes which of the following?
- A fee simple defeasible estate is best described as:
- Real property is defined as:
- Which type of deed provides the GREATEST protection for a buyer?
- A quitclaim deed conveys:
- To be valid in Arkansas, a deed must contain all of the following EXCEPT:
- A fixture is best defined as:
- The MARIA test for fixtures includes which of the following factors?
- Which of the following is typically considered personal property (not a fixture) in a real estate sale?
- Adverse possession in Arkansas allows a person to acquire title to land they have occupied openly, continuously, and hostilely for:
- An easement appurtenant is an easement that:
- An easement in gross is an easement that:
- A license as a property right is best described as:
- A deed restriction that prohibits commercial use of a residential parcel is an example of a:
- Accretion refers to the gradual addition of land to a property through:
- In the metes and bounds survey system, a monument is:
- A condominium owner owns:
- A cooperative (co-op) owner holds:
- In a time-share, the purchaser acquires:
- Which type of legal description divides the U.S. into 6-mile square townships?
- A section in the government survey system contains how many acres?
- The NW 1/4 of Section 12 in the government survey system contains how many acres?
- Which of the following best describes a riparian right?
- A pur autre vie life estate is measured by:
- Which of the following is a voluntary alienation of title?
- In Arkansas, intestate succession refers to:
- Fee simple absolute is best described as:
- A life estate grants the life tenant the right to:
- Joint tenancy differs from tenancy in common primarily because joint tenancy:
- Tenancy by the entirety is available only to:
- A covenant running with the land is:
- Which type of deed provides the greatest protection to the grantee?
- Adverse possession in Arkansas requires continuous, open, notorious, hostile, and exclusive possession for:
- Personal property becomes real property through the process of:
- Real property is generally described as consisting of:
- The 'bundle of rights' associated with real property ownership includes the rights to:
- A deed restriction (restrictive covenant) is an example of a:
- In Arkansas, a mechanic's lien may be filed by:
- Which of the following is an example of appurtenant real property?
- A license (as a real property interest) is:
- A condominium owner holds:
- Tenancy in common is characterized by:
- Which type of lease gives the tenant possession of the property for a fixed period?
- A leasehold estate is best described as:
- A month-to-month tenancy (estate from period to period) automatically renews unless:
- Gross lease means the tenant pays:
- A net lease requires the tenant to pay:
- Constructive eviction occurs when:
- A license is different from an easement because a license is:
- A prescriptive easement is acquired through:
- Which form of property ownership is unique to married couples and includes the right of survivorship?
- The term 'intestate' means dying:
- A 'devise' of real property refers to:
- A property tax lien is an example of what type of lien?
- A mortgage lien is what type of lien?
- A judgment lien is what type of lien?
- The legal description method that uses a point of beginning (POB), compass directions, and distances is called:
- The rectangular survey system (government survey) divides land using:
- One section of land in the rectangular survey system contains:
- How many acres are in the NE 1/4 of the SE 1/4 of Section 10?
- Emblements are:
- Water rights associated with land adjacent to a river are called:
- Accretion is the process by which:
- A timeshare ownership gives the owner the right to:
- A fee simple defeasible is a form of ownership that:
- An easement by necessity is created when:
- When a co-owner of a tenancy in common wants to sell but the others do not, the dissatisfied co-owner may seek:
- A senior lien has priority over a junior lien. In the event of foreclosure, the proceeds are distributed:
- An easement in gross benefits:
- Which of the following would typically be considered a fixture (real property) rather than personal property?
- The doctrine of prior appropriation for water rights (used in western states) means:
- The term 'seisin' in real property law refers to:
- Which government power allows the state to collect property taxes?
- Under Arkansas homestead law, what protection does the homestead exemption provide?
- The Arkansas homestead exemption protects:
- The primary purpose of a Homeowners' Association (HOA) in a planned community is to:
- Which of the following is a characteristic of a periodic tenancy?
- Which type of tenancy is created when a tenant holds over after a lease expires without the landlord's consent?
- In Arkansas, property taxes are assessed as of which date?
- A profit à prendre is a right to:
- The term 'curtilage' refers to:
- An encumbrance that makes real property less desirable but does not prevent transfer of title is an example of:
- When does a mechanic's lien in Arkansas need to be filed to be effective?
- An estate at will is a tenancy that:
- The covenant of quiet enjoyment in a lease guarantees that:
- A lease is both a contract and a conveyance because it:
- Which type of deed is most commonly used to transfer residential real estate between buyer and seller in Arkansas?
- When a deed contains a 'habendum clause,' it:
- Which of the following is a general lien (affecting all of a debtor's real property in the jurisdiction)?
- An accretion process adds land to a riparian owner's property. This newly added land is called:
- Avulsion differs from accretion in that avulsion is:
- Reliction (dereliction) occurs when:
- Real property taxes in Arkansas are paid in arrears. This means:
- In Arkansas, a manufactured home placed on a permanent foundation and titled as real property is treated as:
- In Arkansas, when is property tax on real estate due?
- In Arkansas, unpaid property taxes become a lien on the property as of:
- A 'life estate pur autre vie' is a life estate measured by:
- Which of the following statements about a remainderman is correct?
- A property owner who allows someone to use their land without objection for years may lose the right to stop that use through:
- Which of the following is an example of a 'public' easement?
- Which of the following would constitute abandonment of real property?
- The right of survivorship in joint tenancy means:
- Which of the following actions would sever a joint tenancy?
- In Arkansas, which county official is responsible for determining the assessed value of real property?
- Arkansas property is assessed at what percentage of its appraised (market) value for tax purposes?
- The Arkansas Homestead Act exemption reduces a homeowner's taxable assessed value by how much?
- In Arkansas, when a property is sold at a tax sale for delinquent taxes and is not redeemed, the purchaser receives a:
- The Arkansas Commissioner of State Lands manages land that has been forfeited to the state due to:
- Arkansas law allows a homestead exemption from forced sale for which type of debt?
- In Arkansas, the county where real estate is located governs the recording of instruments because:
- An Arkansas property owner who disagrees with their county assessor's property valuation may appeal to the:
- Which type of mineral rights situation is most common in Arkansas oil and gas regions?
- An oil and gas lease in Arkansas grants the lessee the right to:
Property Valuation
140 questions- Which appraisal approach estimates value by analyzing recent sales of comparable properties?
- The cost approach to value is MOST appropriate for appraising:
- Depreciation in appraisal refers to:
- A comparable property sold for $250,000 but has a garage worth $10,000 that the subject property lacks. The adjusted value of the comparable for comparison to the subject is:
- The income approach to value is based on the principle that a property's value is related to:
- The principle of 'substitution' in real estate appraisal states that:
- A property's Gross Rent Multiplier (GRM) is calculated by dividing the:
- Which type of depreciation is caused by factors OUTSIDE the property, such as a nearby highway being constructed?
- The sales comparison approach to value is most appropriate for:
- The income approach to value estimates property value based on:
- The cost approach to value is most reliable for:
- Depreciation in the cost approach refers to:
- A comparable home sold for $200,000. It has a garage worth $10,000 that the subject property lacks. The adjusted sale price of the comparable is:
- Market value is best defined as:
- The capitalization rate (cap rate) is calculated by dividing:
- A property generates a net operating income of $30,000 per year. Using a capitalization rate of 6%, what is the indicated value?
- Functional obsolescence in a residential property is best illustrated by:
- External (economic) obsolescence differs from other forms of depreciation because it is:
- Regression is an appraisal principle that states:
- The principle of contribution states that the value of an improvement is measured by:
- The gross rent multiplier (GRM) is calculated by:
- An appraisal is different from a competitive market analysis (CMA) primarily because:
- Which appraisal principle holds that value is created by the expectation of future benefits?
- The principle of substitution states that a buyer will pay no more for a property than:
- Effective age differs from chronological (actual) age in that effective age reflects:
- A property's highest and best use is defined as the use that is:
- The income approach to value is most commonly used to appraise:
- The sales comparison approach estimates value by:
- The principle of substitution states that a buyer will not pay more for a property than:
- Functional obsolescence in an appraisal refers to a loss of value due to:
- An appraisal is best defined as:
- The capitalization rate (cap rate) in the income approach is used to:
- External obsolescence in property valuation is caused by:
- A comparative market analysis (CMA) is performed by:
- The gross rent multiplier (GRM) is calculated as:
- The principle of HIGHEST AND BEST USE means the use that is:
- The principle of PROGRESSION states that:
- The principle of REGRESSION states that:
- In an appraisal, an adjustment for a comparable sale that is SUPERIOR to the subject property results in:
- Which appraisal approach is most commonly used for appraising special-purpose properties such as churches or schools?
- Effective age differs from actual (chronological) age in that effective age:
- A property's assessed value for tax purposes is determined by:
- The principle of CONTRIBUTION states that:
- Physical deterioration that can be corrected at a cost that is less than the resulting increase in value is called:
- Replacement cost in the cost approach is the cost to construct:
- When using the income approach, potential gross income minus vacancy and credit losses equals:
- Net operating income (NOI) is calculated as:
- The principle of ANTICIPATION in appraisal states that:
- Reconciliation in the appraisal process refers to:
- What is the purpose of a Broker Price Opinion (BPO)?
- Economic life of an improvement differs from physical life in that it is:
- A property that sells for $280,000 and has a monthly gross rent of $2,000 has a GRM of:
- When appraising a historic property in Arkansas, the appraiser must consider:
- The principle of BALANCE in appraisal holds that:
- In the income approach to value, Net Operating Income (NOI) is calculated as:
- Capitalization rate (cap rate) is defined as:
- A property has an NOI of $36,000 and a cap rate of 8%. What is its estimated value?
- Physical depreciation that cannot be economically repaired is classified as:
- An appraiser makes a positive adjustment to a comparable sale when the comparable:
- The principle of substitution states that:
- Functional obsolescence in a property is caused by:
- When using the sales comparison approach, a 'gross living area' adjustment is made because:
- What does 'highest and best use' mean in appraisal?
- External obsolescence (economic obsolescence) is caused by:
- Reconciliation in appraisal refers to:
- Economic life of an improvement refers to:
- Accrued depreciation in the cost approach equals:
- The principle of progression in real estate valuation states that:
- A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
- Effective age differs from actual age in that effective age reflects:
- Market value is defined as:
- The principle of contribution in appraisal means:
- A comparable property sold for $310,000. It has one more bathroom than the subject. The market value of a bathroom is $8,000. The adjusted sale price of the comparable is:
- Reproduction cost in the cost approach is the cost to build:
- The income multiplier approach is most reliable for:
- Which type of appraisal is typically required for a residential mortgage loan?
- The principle of anticipation holds that value is determined by:
- An appraisal 'adjustment for time' is needed when comparable sales:
- Direct capitalization in the income approach converts income into value by:
- An appraiser uses three comparable sales with adjusted values of $290,000, $295,000, and $298,000. The subject is most similar to the $295,000 comparable. The appraiser should likely conclude a value of approximately:
- A property's value is most likely to be reduced by external obsolescence if it is:
- In the cost approach, land is always valued separately using:
- The term 'as improved' in an appraisal refers to:
- The principle of balance in appraisal states that:
- An appraiser is required to be an 'independent, disinterested third party.' This means the appraiser:
- Price differs from value in real estate because price is:
- An income property has an NOI of $50,000 and the market cap rate is 7.5%. What is the estimated value?
- Comparable sales selected by an appraiser should be:
- A leased fee interest represents:
- The leasehold interest represents:
- In the income approach, 'effective gross income' is defined as:
- The USPAP (Uniform Standards of Professional Appraisal Practice) Standards are issued by:
- The term 'as-is market value' in an appraisal means:
- In the sales comparison approach, the appraiser should give the most weight to:
- The 'effective date' of an appraisal refers to:
- The principle of conformity holds that:
- The cost of an improvement refers to:
- A broker price opinion (BPO) differs from an appraisal in that a BPO:
- If a home in a neighborhood of $200,000 houses is improved with a $100,000 addition, its value will likely:
- Operating expenses in the income approach typically include:
- When an appraiser selects comparable sales, they should prefer comparables that:
- The gross income multiplier (GIM) differs from the GRM in that GIM uses:
- In mass appraisal (as used for property tax assessment), the assessor typically uses:
- Transferable development rights (TDRs) affect property valuation because they:
- The 'as-stabilized' value concept in appraisal refers to:
- A property has 10 units renting at $800/month each. All units are currently occupied. Operating expenses are $40,000 annually. What is the NOI?
- When a comparable sale was a foreclosure or distressed sale, the appraiser should:
- The 'income approach' to value is least useful for:
- In Arkansas, appraisers are licensed and regulated by:
- Which of the following properties would MOST benefit from the cost approach in appraisal?
- Which of the following would cause an appraiser to use the cost approach as the primary method of valuation?
- The concept of 'plottage' refers to:
- An overimprovement to a property is one where:
- An underimprovement to a property occurs when:
- A going-concern value refers to:
- A 'before and after' appraisal method is commonly used in:
- The capitalization rate and property value have which type of relationship?
- An appraiser reviewing an income property's 'rent roll' is examining:
- Which approach is typically weighted most heavily when appraising a 4-unit residential rental property for a conventional mortgage?
- An appraisal with a retrospective (historical) effective date is used in which context?
- Which of the following most accurately describes 'market rent'?
- Contract rent below market rent creates:
- Which of the following is an example of a physical characteristic that an appraiser would adjust for in the sales comparison approach?
- The percentage adjustment for a specific feature in the sales comparison approach is determined by:
- Functional obsolescence due to 'superadequacy' refers to:
- How does an appraiser handle a comparable sale that sold under non-arm's-length conditions (e.g., between family members)?
- The 'gross building area' (GBA) of a commercial building includes:
- The 'rentable area' of a commercial building is typically:
- Economic obsolescence due to changes in nearby land use is considered 'incurable' because:
- A capitalization rate derived from market transactions is called a(n):
- When analyzing a sale for use as a comparable, the appraiser should first verify that it was an:
- In the sales comparison approach, the appraiser adjusts for 'condition' of a comparable property that has deferred maintenance relative to the subject by:
- The 'band of investment' method of deriving a capitalization rate considers:
- In the income approach, 'reserves for replacement' (replacement reserves) represent:
- An appraiser uses a value-in-use estimate for which of the following?
- The 'effective gross income multiplier' (EGIM) is calculated by:
- Which of the following is the primary document used by an appraiser for a standard residential appraisal?
- A cap rate of 5% versus a cap rate of 10% on the same NOI would indicate:
- The 'three unities' of time, title, and interest traditionally required for joint tenancy — what is the fourth unity?
- In the income approach, the overall capitalization rate (OAR) is most reliably derived from:
Fair Housing
139 questions- The Federal Fair Housing Act of 1968 prohibits discrimination based on which protected classes?
- Steering is an illegal fair housing practice that involves:
- Blockbusting (panic selling) occurs when a licensee:
- Which of the following is an example of redlining?
- Under the Fair Housing Act, 'familial status' protects:
- Under the Fair Housing Act, a landlord must make 'reasonable accommodations' for a tenant with a disability. This means:
- A complaint under the Federal Fair Housing Act must generally be filed with HUD within:
- Arkansas's continuing education requirement mandates that Fair Housing be included in CE coursework. This is primarily because:
- The Fair Housing Act of 1968 originally prohibited discrimination based on which protected classes?
- The 1988 Fair Housing Amendments Act added which two protected classes to federal fair housing law?
- Steering in real estate refers to:
- Blockbusting (panic peddling) is a Fair Housing violation that involves:
- Redlining is a Fair Housing violation in which lenders or insurers:
- Under the Fair Housing Act, a person with a disability may request a 'reasonable accommodation.' This means the landlord must:
- A landlord must allow a tenant with a disability to make reasonable modifications to the unit. Under the Fair Housing Act, who typically pays for these modifications?
- Which of the following is an exempt housing category under the federal Fair Housing Act?
- An Arkansas licensee must include Fair Housing in their continuing education because:
- A 'disparate impact' Fair Housing violation occurs when:
- Which advertising phrase in a rental listing would MOST likely violate the Fair Housing Act?
- A senior housing community that restricts residency to persons 55 or older is exempt from the familial status provisions of the Fair Housing Act if:
- The Civil Rights Act of 1866 prohibits discrimination based solely on:
- Under the Fair Housing Act, the maximum civil penalty for a first violation by a respondent who has NO prior violations within the preceding 5 years is approximately:
- An Arkansas licensee who believes a seller's instruction constitutes illegal discrimination should:
- Steering is a fair housing violation that involves:
- Blockbusting is a fair housing violation that involves:
- Under the Fair Housing Act, a landlord MAY legally:
- Redlining is a discriminatory practice in which lenders:
- The Fair Housing Act's exemption for 'Mrs. Murphy' (small landlord) applies to:
- A person who believes they have been discriminated against under the federal Fair Housing Act must file a complaint with HUD within:
- Under the Fair Housing Act, a seller's agent who refuses to show a home to a buyer based on race is guilty of:
- The Equal Credit Opportunity Act (ECOA) prohibits lenders from discriminating based on:
- A property manager may legally ask a prospective tenant who uses a wheelchair to:
- The Americans with Disabilities Act (ADA) primarily applies to:
- Under the Fair Housing Act, a person with a disability may request a reasonable accommodation, which is defined as:
- Which of the following housing types is generally EXEMPT from the Fair Housing Act's familial status protections?
- Under the Fair Housing Act, advertising that states 'perfect for young professionals' is problematic because it may indicate discrimination based on:
- Who enforces the federal Fair Housing Act?
- A property manager who tells a minority applicant that no units are available when units are in fact available is committing:
- Which of the following is a permitted question on a rental application under fair housing law?
- The Civil Rights Act of 1866 prohibits discrimination based on:
- A seller instructs their agent not to bring offers from a specific ethnic group. The agent should:
- A testers under fair housing enforcement are people who:
- A landlord who imposes more stringent credit requirements on applicants of a specific national origin compared to others is violating:
- Under the Fair Housing Act, 'familial status' protections apply to:
- An agent who only shows properties in predominantly white neighborhoods to white buyers, while showing minority buyers properties in other areas, is guilty of:
- HUD's advertising guidelines under the Fair Housing Act state that ads should NOT:
- A reasonable modification under the Fair Housing Act is:
- Which of the following is a religious organization's exemption under the Fair Housing Act?
- Under the Fair Housing Act, a maximum occupancy limit of two persons per bedroom set consistently for all applicants is generally:
- Which of the following is NOT a protected class under the federal Fair Housing Act?
- What is the maximum civil penalty for a first violation of the Fair Housing Act in a HUD proceeding?
- An Arkansas property manager who refuses to rent to an applicant because they use a wheelchair is violating:
- The federal Fair Housing Act prohibits discrimination based on which protected classes?
- Steering in real estate is defined as:
- Blockbusting is an illegal practice where a person:
- Under the Fair Housing Act, a landlord may legally refuse to rent to a person with a disability if:
- A 'reasonable accommodation' under fair housing law refers to:
- Under the Fair Housing Act, familial status protects:
- Redlining is the practice of:
- Under the Fair Housing Act, which of the following advertising statements is ILLEGAL?
- A complaint alleging a Fair Housing Act violation must be filed with HUD within:
- Which property type is exempt from most provisions of the federal Fair Housing Act?
- The 'Mrs. Murphy' exemption to the Fair Housing Act applies to:
- Under the Fair Housing Act, a 55+ senior housing community may legally refuse to rent to families with children if:
- Disparate impact under fair housing law refers to:
- Which government agency enforces the federal Fair Housing Act?
- A landlord refusing to rent to a wheelchair user unless the user agrees not to make any modifications to the unit is:
- Testers in fair housing enforcement are:
- Source of income discrimination refers to the illegal practice of:
- An agent who shows properties only in predominantly white neighborhoods to a white buyer and only in minority neighborhoods to a minority buyer is engaging in:
- Under the Fair Housing Act, which of the following actions is LEGAL for a landlord?
- The Jones v. Alfred H. Mayer Co. (1968) Supreme Court ruling held that:
- A real estate agent is showing properties to a buyer who is a veteran. The agent avoids showing homes in neighborhoods with few veterans. This is:
- The Arkansas Fair Housing Act provides:
- Under fair housing law, an accessible design requirement applies to:
- A landlord who has a 'no pets' policy refuses to allow a tenant with severe depression to keep an emotional support animal. This is:
- The maximum civil penalty for a first-time Fair Housing Act violation adjudicated by HUD is:
- Which of the following is a permissible restriction in housing advertised for 'adults only'?
- A seller tells their listing agent, 'I don't want to sell to people from a certain ethnic background.' The listing agent must:
- A landlord who charges a higher security deposit to tenants of one race is guilty of:
- Which type of housing is exempt from the Fair Housing Act's familial status protections?
- An agent who refuses to show a buyer homes in a neighborhood because 'you won't be comfortable there' without basis in the buyer's stated preferences is engaging in:
- A property manager sets a minimum income requirement of 3x monthly rent for all applicants. This policy:
- The penalty for a real estate licensee found in violation of the Arkansas fair housing laws by AREC may include:
- Which of the following is a legitimate, non-discriminatory reason to refuse a rental applicant?
- The Home Mortgage Disclosure Act (HMDA) requires lenders to:
- Under the Fair Housing Act, a housing provider must provide a reasonable modification to a tenant with a disability at:
- Advertising a property as 'ideal for a young professional couple' is problematic because:
- The intent element in a fair housing discrimination claim:
- A real estate agent who writes 'no Section 8' in an MLS listing remark in a jurisdiction where source of income is a protected class is:
- A mortgage lender who charges higher interest rates to borrowers in certain zip codes regardless of creditworthiness may be engaging in:
- The Arkansas Fair Housing Commission handles complaints at the:
- Which of the following constitutes a reasonable accommodation request under fair housing law?
- Which element is NOT required to establish a claim of disparate treatment under the Fair Housing Act?
- A real estate broker may be held vicariously liable for a salesperson's fair housing violation if:
- The Fair Housing Act exempts which type of organization from the prohibition on religion-based discrimination?
- A prospective homebuyer tells an agent they only want to see homes in a specific neighborhood of their choice. The agent should:
- Conciliation in HUD fair housing proceedings refers to:
- Restrictive covenants based on race that were recorded in older deeds are:
- Under the Fair Housing Act, a seller may legally ask about a buyer's:
- The term 'protected class' under fair housing law refers to:
- A real estate salesperson shows homes in different price ranges to buyers of different races who have identical financial qualifications. This is an example of:
- An owner of a 15-unit apartment building who personally manages the property and uses no real estate broker is:
- Under the Fair Housing Act, refusing to sell or rent to a person with HIV/AIDS constitutes discrimination based on:
- A multiple listing service (MLS) that restricts access to membership based on race is:
- The Fair Housing Act's definition of 'handicap' includes individuals who:
- Who has the burden of proof in a fair housing disparate treatment case?
- AREC may discipline a licensee for fair housing violations by:
- Which of the following represents a legitimate non-discriminatory reason to reject a rental applicant?
- Which of the following represents a fair housing issue in mortgage lending?
- The National Association of REALTORS® Code of Ethics obligates members to provide equal professional service to all clients and customers. This aligns with:
- An agent is asked by a buyer to provide demographic information about the racial composition of a neighborhood. The agent should:
- The Arkansas Real Estate Commission has disciplinary jurisdiction over licensees who violate fair housing. A complaint against an unlicensed person for housing discrimination should be filed with:
- Under the fair housing 'source of income' protection (where applicable), which income source must a landlord accept?
- A disability access modification in a rental unit is paid for by:
- Which statement about the Fair Housing Act and sex discrimination is correct?
- A housing provider who uses overly broad criminal history screening (e.g., rejecting all applicants with any arrest record) may be found to violate fair housing under:
- Which of the following CANNOT be grounds for refusing to rent to a prospective tenant under the Fair Housing Act?
- A landlord who tells different applicants about different available apartments (showing less desirable units to protected-class members) is engaging in:
- In Arkansas, which agency should a buyer contact if they believe a real estate licensee discriminated against them in violation of fair housing law?
- Which principle from the NAR Code of Ethics specifically addresses fair housing and equal services?
- Which type of housing provider is MOST subject to ADA accessibility requirements?
- A real estate professional can best protect themselves from fair housing claims by:
- The Fair Housing Act's prohibition on discrimination 'in the sale or rental of housing' covers which aspect of a real estate transaction?
- A prospective tenant is denied housing solely because they have a disability. Under the Fair Housing Act, this tenant may:
- Under the NAR settlement (2024), buyer's agents and sellers' listing brokers are required to:
- A landlord's consistent policy of requiring all applicants to pass a background check and income verification, uniformly applied to all applicants, is:
- The Fair Housing Act's requirement that multi-family housing built after March 1991 have accessible common areas applies to buildings with:
- Which statement about sex discrimination in housing under the Fair Housing Act is most accurate?
- A REALTOR® who refuses to show properties in a certain neighborhood to a prospective buyer of a specific religion, without any stated request from the buyer, is engaging in:
- Under the Fair Housing Act, 'familial status' protection covers a family with a child who is:
- Which of the following lease provisions would violate the Fair Housing Act?
- HUD's role in enforcing the Fair Housing Act includes:
- In an ALJ fair housing proceeding, the maximum civil penalty that can be assessed for a respondent's first violation is approximately:
- A property owner who wishes to maintain housing for Native American tribal members may do so under:
- A lender denying a mortgage application cites only that the property is located in a historically minority neighborhood with 'high risk.' This is most consistent with:
- Which of the following is an example of 'quid pro quo' sexual harassment in housing?
- Which theory of fair housing liability does NOT require proof of discriminatory intent?
- An architect designing a new multifamily building of 10 units fails to include accessible features required by the Fair Housing Act. Who may be held liable?
Escrow & Title
138 questions- Title insurance protects against:
- A lender's title insurance policy protects:
- Which of the following BEST describes a 'cloud on title'?
- In an escrow closing, the escrow agent's primary duty is to:
- Which document transfers legal title from the seller to the buyer in a real estate transaction?
- To be recorded in Arkansas, a deed must be:
- The primary purpose of title insurance is to:
- A lender's title insurance policy (loan policy) protects:
- A general warranty deed provides the grantee with the strongest protection because it contains the grantor's covenant to:
- A special warranty deed differs from a general warranty deed in that it warrants title only against claims arising:
- A quitclaim deed transfers:
- Recording a deed in Arkansas serves primarily to:
- In Arkansas, a valid deed requires all of the following EXCEPT:
- A chain of title refers to:
- A 'cloud on title' is:
- In an Arkansas real estate closing, the escrow agent's role is to:
- RESPA requires a Closing Disclosure (CD) to be provided to the borrower at least how many business days before closing?
- A title search reveals an old, unsatisfied mortgage from 20 years ago. The buyer should:
- What does 'proration' at closing mean?
- Arkansas property taxes are paid in arrears. At closing on July 1, how should the current year's property taxes be prorated?
- Marketable title means that the title:
- A title search is conducted to:
- Title insurance protects the policyholder from:
- An escrow account is best described as:
- Cloud on title refers to:
- In Arkansas, recording a deed provides:
- Proration at closing refers to:
- Which of the following liens has the HIGHEST priority regardless of when it was recorded?
- The closing disclosure (CD) must be provided to the borrower at least how many business days before closing under TRID rules?
- An abstract of title is best described as:
- A lis pendens is:
- A mechanic's lien protects:
- A judgment lien is created when:
- An IRS tax lien on real property:
- In a race-notice jurisdiction like Arkansas, a subsequent purchaser who records first AND has no notice of a prior unrecorded deed wins. This means:
- The HUD-1 Settlement Statement has been largely replaced under TRID by the:
- A title that is 'marketable' means:
- Chain of title refers to:
- The Loan Estimate (LE) must be provided to a mortgage applicant within how many business days after application?
- Constructive notice means:
- A general lien differs from a specific lien in that it:
- Which type of lien is created voluntarily by the property owner?
- In an Arkansas real estate transaction, who typically conducts the closing?
- Title to real property is transferred at the moment of:
- An easement by prescription is acquired by:
- An encroachment occurs when:
- The purpose of a title commitment (preliminary title report) is to:
- A quitclaim deed is most commonly used for:
- At closing, the buyer's earnest money deposit is typically applied to:
- An IRS Form 1099-S is required in a real estate transaction to:
- A title search is performed to:
- Owner's title insurance protects:
- A lender's title insurance policy protects the:
- In an escrow, the escrow agent's primary duty is to:
- The chain of title refers to:
- A cloud on title is best described as:
- RESPA prohibits which of the following at settlement?
- The Closing Disclosure (CD) must be provided to the borrower at least how many business days before consummation?
- Prorations at closing are used to:
- In Arkansas, real estate closing typically involves:
- Which of the following liens has the highest priority in Arkansas?
- A preliminary title report (title commitment) is issued by the title company to:
- The recording of a deed in the county recorder's office:
- Actual notice means:
- In a 'race-notice' recording state (which Arkansas follows), to be protected, a subsequent purchaser must:
- A judgment lien attaches to real property when:
- Lis pendens means:
- The abstract of title differs from a title insurance policy in that the abstract:
- Subrogation in title insurance means the title insurer:
- A deed must contain which of the following to be valid in Arkansas?
- Delivery and acceptance of a deed is significant because:
- A special warranty deed contains the grantor's promise to defend title only against:
- Proration of property taxes at closing in Arkansas typically assumes that the seller is responsible for taxes:
- A HUD-1 Settlement Statement was replaced by which document under TRID?
- Transfer taxes in Arkansas on the sale of real property are:
- A title search going back to the sovereign grant is called a search:
- FIRPTA (Foreign Investment in Real Property Tax Act) requires that when a foreign person sells U.S. real property:
- A buyer's closing costs typically include which of the following?
- A subordination agreement allows:
- Which of the following best describes an abstract of title?
- A title attorney's opinion in Arkansas is based on:
- A buyer who purchases property in good faith, pays value, and records before other claimants in a race-notice state is protected because of:
- A satisfaction of mortgage (release of lien) is recorded when:
- An escrow agent who disburses funds contrary to the escrow instructions is liable for:
- A 'cloud on title' can be cleared through:
- TRID disclosures apply to which of the following loan types?
- Which party typically pays for the owner's title insurance policy in most Arkansas transactions?
- The purpose of a survey in a real estate transaction is to:
- A marketable title is one that:
- Which of the following is an exception typically found in standard title insurance policies?
- The title to real property is transferred at closing when:
- A deed in lieu of foreclosure is used when a borrower:
- A 'short sale' in real estate occurs when:
- Which type of foreclosure does NOT require court proceedings in most cases?
- The right of redemption allows a defaulting borrower to:
- In Arkansas, the typical method of foreclosure for a defaulted mortgage is:
- A title company's extended coverage (ALTA) policy differs from a standard policy in that it:
- The purpose of a power of attorney in real estate closing is to:
- An acknowledgment on a deed is a formal declaration by the grantor, before a notary public, that:
- The primary difference between a grant deed and a quitclaim deed is:
- A trustee's deed is used to convey property held in a:
- A deed recorded in the county recorder's office provides:
- In an escrow closing, what triggers the disbursement of funds and recording of the deed?
- Seller's closing costs typically include:
- What is the purpose of a commitment for title insurance?
- Which of the following items would appear as a debit to the seller on the closing statement?
- Under RESPA, a settlement service provider may NOT:
- Earnest money is typically applied at closing as:
- Which of the following items is typically credited to the buyer on the closing statement?
- A property owner who believes their property was overassessed by the county assessor may:
- A deed must be signed by the:
- A 'gap' in the chain of title occurs when:
- In Arkansas, when is a deed considered 'recorded'?
- The purpose of title insurance in real estate is to:
- Which of the following is a common exception in a standard title insurance policy?
- A 'release clause' in a blanket mortgage allows:
- The term 'wet closing' refers to a closing where:
- The closing disclosure (CD) replaced which combination of prior forms under TRID?
- When a property in Arkansas is sold for delinquent taxes, the original owner has a right of redemption for:
- A deed of reconveyance is issued by a trustee in a deed of trust transaction when:
- Under Arkansas law, the redemption period for a mortgage foreclosure (judicial) is approximately:
- In Arkansas real estate closings, who typically disburses closing funds and records the deed?
- A 'confirmation of sale' or 'affidavit of consideration' in Arkansas is sometimes required to:
- A title company's 'insured closing letter' (or closing protection letter) provides:
- A wire transfer of closing funds is typically required for larger transactions because:
- Which of the following items on a closing disclosure is typically a prepaid item (not a recurring cost)?
- An 'indemnification clause' in a real estate contract or escrow agreement provides that:
- In Arkansas, the circuit court clerk is the official responsible for:
- In Arkansas, 'concurrent ownership' refers to property owned by:
- A 'wild deed' is a deed that:
- The concept of 'priority' in lien law follows the general rule of:
- A title searcher finds a deed with a 'gap' (missing conveyance) in the chain of title. This means:
- The distinction between 'actual' and 'constructive' notice is important in real property law because:
- In Arkansas, the county circuit clerk records which of the following real estate instruments?
- A 'correction deed' is used to:
- Which of the following correctly describes a 'tax deed' issued in Arkansas?
- A real estate agent involved in a transaction should NOT handle closing funds because:
- What is the primary purpose of a preliminary (pre-closing) title report?
Agency
137 questions- In a traditional seller agency relationship, the licensee's fiduciary duties run primarily to:
- Which type of agency allows a single broker or brokerage to represent both the buyer and the seller in the same transaction?
- Which of the following is NOT a fiduciary duty owed by an agent to their client?
- A buyer's agent discovers that their buyer-client has a maximum budget of $300,000 but the seller is asking $280,000. Under buyer agency, the agent should:
- A licensee who assists a buyer in a transaction but does not represent them is most accurately described as a:
- Under Arkansas law, when must agency disclosure be provided to a prospective buyer or seller?
- When a salesperson acts as a dual agent, which of the following statements is TRUE?
- The duty of 'accounting' in an agency relationship means the agent must:
- A listing agent learns that the seller is willing to accept $10,000 less than the asking price. Under seller agency, the agent:
- Agency by ratification is created when a principal:
- A seller's listing agent discovers a material defect in the property. The agent's duty regarding this defect is to:
- Which of the following would MOST likely terminate an agency relationship?
- In Arkansas, dual agency occurs when a broker represents:
- Arkansas law requires dual agency to be disclosed and consented to in:
- A listing agent owes fiduciary duties to the:
- A buyer's agent in Arkansas owes which duty to the seller?
- The fiduciary duty of 'loyalty' requires a listing agent to:
- An Arkansas buyer's agent learns that their buyer client is willing to pay up to $250,000 for a property listed at $235,000. The agent:
- In a designated agency arrangement in Arkansas, the designated agents each represent:
- Which of the following would constitute an undisclosed dual agency in Arkansas?
- The agency relationship between a listing broker and seller is typically created by:
- A subagent is best described as:
- When does an agency relationship typically terminate in a real estate transaction?
- An agent who makes unauthorized commitments on behalf of the principal may create which type of agency?
- A seller's listing agent discovers that the basement leaks during heavy rain. The seller asks the agent not to tell buyers. The agent should:
- The duty of 'accounting' in agency requires a licensee to:
- Which of the following terminates an agency relationship by operation of law?
- In Arkansas, when a licensee works with a buyer but has NO written buyer-agency agreement, the licensee is presumed to be:
- The written agency disclosure required by Arkansas law must be provided to:
- An agent's duty of obedience requires the agent to follow all lawful instructions of the principal. Which instruction would an agent be JUSTIFIED in refusing?
- A transaction broker (non-agent facilitator) in Arkansas owes clients which level of duty?
- A seller's agent receives two offers simultaneously. The agent's duty of disclosure requires them to:
- Which of the following is an example of an expressed agency relationship?
- A seller's agent who also acts as a mortgage loan originator for the same buyer in the same transaction would most likely violate:
- Under Arkansas law, an agent must disclose to a buyer that they have a personal financial interest in a transaction. This is required by the duty of:
- A buyer's agent who fails to disclose known material defects to their buyer client has breached the fiduciary duty of:
- In Arkansas, the agency disclosure form must be:
- In an Arkansas real estate transaction, the agent who represents the seller is typically called the:
- Which type of agency relationship is created when a buyer signs a buyer representation agreement with a broker?
- A real estate agent who represents both the buyer and seller in the same transaction is known as a:
- An agent's fiduciary duty of LOYALTY means the agent must:
- When does an agency relationship with a seller typically terminate?
- Under Arkansas law, a real estate licensee must provide an agency disclosure to prospective clients:
- Which of the following best describes a subagent?
- The fiduciary duty of CONFIDENTIALITY requires an agent to:
- In Arkansas, which written document typically establishes the seller's agency relationship with a listing broker?
- An agent who has NOT been hired by a buyer but nonetheless acts in ways that create a reasonable belief of representation is an example of:
- In a transaction brokerage arrangement, the real estate agent:
- The duty of OBEDIENCE requires an agent to:
- An agent who represents the buyer in a real estate transaction owes which of the following duties to the seller?
- Which of the following best describes ratification as a method of creating an agency?
- An agent who earns a fee from both the buyer and the seller without disclosing this to both parties is guilty of:
- If a buyer's agent learns that the buyer's maximum budget is $250,000 while the listing is priced at $230,000, the agent should:
- An agent's duty of CARE requires the agent to:
- A listing agent learns that the seller plans to accept any offer above $180,000, though the property is listed at $220,000. The listing agent:
- Designated agency in Arkansas allows a broker to:
- Which type of listing gives the broker the right to a commission regardless of who sells the property, even if the owner sells it themselves?
- What does it mean when a listing agent is said to have an 'exclusive' agency relationship with the seller?
- An agent who tells a buyer that a neighborhood is 'up and coming' and a great investment, without factual basis, may be guilty of:
- Negligent misrepresentation differs from fraudulent misrepresentation in that it involves:
- A net listing in Arkansas is:
- Which of the following actions by a buyer's agent is an example of a breach of fiduciary duty?
- In Arkansas, a buyer's agent owes which of the following duties to the buyer-client?
- Dual agency in Arkansas requires:
- A subagent in a real estate transaction owes primary fiduciary duties to:
- The agency disclosure form in Arkansas must be provided to a prospective buyer or seller:
- Designated agency means:
- A listing agent learns that the seller is going through a divorce and must sell quickly. The listing agent must:
- Which action by an agent would constitute a breach of the duty of loyalty?
- An agent's authority to bind the principal in contract is called:
- When does an agency relationship typically terminate?
- A transaction broker in Arkansas:
- The duty of obedience in an agency relationship requires the agent to:
- Puffing in real estate is best described as:
- Which of the following is a material fact that a listing agent MUST disclose?
- When a buyer's agent presents multiple offers to a seller's agent, the seller's agent should:
- An implied agency relationship can be created by:
- The duty of accounting requires the agent to:
- A net listing is prohibited in Arkansas because it:
- In Arkansas, what must occur before a broker can represent both the buyer and seller in the same transaction?
- A buyer's agent who learns their client has been pre-approved for $350,000 but is making an offer of $290,000 should:
- The seller's agent discovers that the home has a leaking roof the seller did not disclose. The agent should:
- An agent's duty to disclose requires the agent to share all information that is:
- A listing expires and the seller relists with a different broker. The original broker hears the new listing sold and feels they deserve a commission because they introduced the buyer during their listing period. Which doctrine might support their claim?
- A buyer's agent accepts a referral fee from a home inspector. This is:
- When a real estate agent is found to have an undisclosed interest in a transaction, the principal may:
- A listing broker's authority to sell property is granted by the:
- An agent who continues to act on behalf of the principal after the agency has been revoked may be liable for:
- In an in-house transaction where the same brokerage represents both buyer and seller, the broker may avoid dual agency by using:
- The duty of reasonable care in real estate agency means the agent should:
- Apparent authority (ostensible authority) arises when:
- Ratification of an unauthorized act by an agent occurs when the principal:
- A seller's agent who tells a buyer a home is in 'perfect condition' when they know there are major plumbing defects is guilty of:
- Stigmatized property refers to a property that:
- Under Arkansas law, must a seller disclose that a murder occurred in the home?
- Which type of listing agreement is generally considered most advantageous to the listing broker?
- When a buyer tells an agent they will pay up to $300,000 but want to start at $270,000, the agent should:
- A cooperating broker who finds a buyer for a listed property typically earns compensation through:
- An agent who represents a buyer and collects a fee from both the buyer and the seller must:
- The duty of confidentiality survives the termination of the agency because:
- An agency relationship requires which of the following essential elements?
- An agent discovers mold behind the walls of a listed property while reviewing seller-disclosed inspection reports. The seller says 'don't mention it.' The agent should:
- A buyer's agent who submits a buyer's offer without authorization for a property that turns out to be worth far more may be liable for:
- Which of the following best describes an 'arm's-length transaction'?
- A seller instructs the listing agent to tell buyers the roof was recently replaced, when in fact it was not. The agent should:
- A licensee who represents the buyer in a transaction where the licensee's spouse is the seller must:
- A buyer's agent is showing homes to a buyer who has told the agent they are being transferred and must move in 60 days. When negotiating, the agent should:
- A seller's agent represents the seller but has no client relationship with the buyer. What duties does the agent owe to the buyer?
- When does an agency relationship with a buyer typically begin?
- AREC requires agency disclosure in Arkansas to be made to prospective buyers and sellers. The primary purpose of agency disclosure is to:
- A seller's agent receives an offer that is $10,000 below asking price. The agent believes the offer is fair. The agent should:
- The term 'fiduciary' in real estate agency means the agent:
- An agent who gives a buyer advice about negotiating a lower price for a seller's property (without representing the buyer) is potentially creating:
- A principal broker who allows a salesperson to operate independently without adequate supervision may be liable for:
- A buyer is shown a home by the listing agent. Later the buyer returns and asks the listing agent to help write an offer. The listing agent should:
- A buyer's agent who learns the subject property has a zoning change pending that will allow a neighboring commercial development should:
- Under the NAR Code of Ethics (Standard of Practice 1-15), REALTORS® must disclose to the buyer:
- A licensee working as a buyer's agent has a personal interest in a listing their buyer wants to purchase. The agent must:
- A buyer asks their agent not to disclose they are paying cash (no financing contingency). The agent should:
- An agent who misrepresents property square footage in the MLS is guilty of:
- The principal in an agency relationship is also known as the:
- A seller's agent who also represents investors and is considering purchasing the listed property must:
- An agency by estoppel arises when:
- An Arkansas real estate agent's E&O (errors and omissions) insurance covers:
- The duty of 'reasonable care' requires a licensee to:
- An agent who signs a document on behalf of their principal without authority is liable as:
- Latent defects in real property are those that:
- A seller's agent who fails to disclose that the subject property is in a flood zone to a buyer may be liable for:
- A buyer's agent who also receives a fee from the seller without the buyer's knowledge is:
- An agent who discloses confidential information about a client to a third party without permission may be liable for:
- Which type of listing arrangement gives the seller the greatest protection in terms of the broker's obligations?
- An agent who allows their personal opinion of the buyer's offer to prevent them from presenting it to the seller is guilty of:
- An agent notices the listed property has electrical wiring that appears hazardous but the seller has not disclosed it. The agent should:
- A listing agent has a personal financial interest in a title company and routinely recommends it to sellers without disclosure. This creates:
- What distinguishes an 'express' agency from an 'implied' agency?
- When a seller's agent advertises the property using drone photography without the neighbor's knowledge, and the drone flies over the neighbor's property, potential issues include:
- A buyer's broker receives a phone call from the seller asking to speak with the buyer directly. The buyer's broker should:
Real Estate Math
137 questions- A property sells for $175,000. The commission rate is 6%. The listing broker and selling broker split the commission 50/50. How much does each broker receive?
- A seller wants to net $150,000 after paying a 6% commission. What must the property sell for?
- A rectangular lot is 150 feet wide and 200 feet deep. How many acres is this lot? (1 acre = 43,560 sq ft)
- A buyer obtains a loan for $200,000 at 7% annual interest. What is the first month's interest payment?
- Property taxes on a home assessed at $180,000 are $3,600 per year. What is the tax rate expressed as a mill rate?
- A property's capitalization rate is 8% and its net operating income (NOI) is $24,000. What is the estimated value using the income approach?
- A broker earns a 6% commission on a $275,000 sale. The listing broker and selling broker split the commission 50/50. The listing agent receives 60% of the listing broker's half. How much does the listing agent receive?
- A property's assessed value is $120,000 and the tax rate is 45 mills. What is the annual property tax?
- A property's assessed value is $80,000 and the tax rate is 45 mills. What is the annual property tax?
- A seller wants to net $180,000 after paying a 6% commission and $3,000 in closing costs. What must the property sell for (rounded to the nearest dollar)?
- A seller wants to net $150,000 after paying a 5% commission. What minimum sale price is required (to the nearest dollar)?
- A rectangular lot measures 150 feet by 200 feet. How many acres is the lot? (1 acre = 43,560 sq ft)
- A property sold for $210,000. The seller originally paid $175,000. What was the percentage of appreciation?
- A buyer obtains a $200,000 mortgage at 6% annual interest. What is the first month's interest payment?
- A $150,000 loan at 6% annual interest. What is the first month's interest?
- An investor purchases a duplex for $220,000 generating $2,200/month gross rent. What is the gross rent multiplier (GRM)?
- A property's NOI is $18,000 and the cap rate is 9%. What is the indicated value?
- Annual property taxes are $3,600. The seller owned the property from January 1 through September 30 (closing is October 1, using a 360-day year / 30-day months). How much does the seller owe the buyer in tax proration?
- A property sells for $225,000. The broker charges a 6% commission. How much commission is earned?
- A lot measures 150 feet by 200 feet. What is the area in square feet?
- A home is purchased for $180,000. The buyer makes a 10% down payment. What is the loan amount?
- Annual property taxes are $3,600. The property closes on September 1. Using a 360-day year, how much does the seller owe the buyer at closing for unpaid taxes (seller pays through closing day)?
- A property generates monthly gross rents of $2,500. The gross rent multiplier is 110. What is the estimated property value?
- A property's net operating income is $24,000. If the cap rate is 8%, what is the estimated value?
- A rectangular parcel measures 1/4 mile by 1/2 mile. How many acres does it contain? (1 mile = 5,280 feet; 1 acre = 43,560 sq ft)
- A salesperson earns 60% of the commission on a sale. The total commission is $9,000. How much does the salesperson earn?
- A property was purchased for $150,000 and sold for $175,500. What is the percentage of profit?
- A buyer takes a $200,000 loan at 6% annual interest. What is the first month's interest payment?
- A property has an assessed value of $120,000. The tax rate is 50 mills. What are the annual taxes?
- A broker earns a 5% commission on a sale. If the total commission is $11,500, what was the sale price?
- A building has 8,000 square feet of rentable space. The monthly rent is $12 per square foot per year. What is the annual gross income?
- A home sells for $195,000. Transfer taxes are $3.30 per $1,000 of sale price. What is the transfer tax?
- A property rents for $1,200 per month. The annual vacancy rate is 5%. What is the effective gross income?
- A seller wants to net $150,000 after paying a 6% commission. What must the minimum selling price be?
- A rectangular parcel is 330 feet by 660 feet. How many acres is this? (43,560 sq ft = 1 acre)
- A buyer puts 20% down on a $250,000 home and finances the rest at 7% annual interest. What is the first month's interest?
- What is the LTV ratio if the loan is $168,000 and the appraised value is $210,000?
- A building is purchased for $500,000. The land is valued at $100,000. Assuming straight-line depreciation over 39 years, what is the annual depreciation deduction?
- A property is assessed at 20% of its market value of $300,000. The tax rate is 80 mills. What are the annual taxes?
- A broker splits the commission with the selling broker 50/50. The total commission is $15,000. The selling salesperson receives 60% of their broker's half. How much does the selling salesperson earn?
- A buyer obtains a $175,000 mortgage. The origination fee is 1 point. How much is the origination fee?
- A commercial property has an NOI of $45,000 and a cap rate of 9%. What is its estimated value?
- A property's market value is $200,000. Annual taxes are $2,400. What is the tax rate as a percentage of market value?
- A house is listed at $215,000. The broker accepts a 5.5% commission. If the house sells at full price, what is the commission?
- If a property appreciated 8% in one year, and it is now worth $270,000, what was the original value?
- A property contains 3 acres. How many square feet is that? (1 acre = 43,560 sq ft)
- A buyer pays $10,500 in closing costs on a $350,000 purchase. What percentage of the purchase price are the closing costs?
- A tenant pays $1,500 per month for a 2,000 sq ft office space. What is the annual rent per square foot?
- A home sells for $250,000. The listing broker charges a 6% commission, split equally between the listing and selling brokers. How much does each broker receive?
- A property purchased for $180,000 is sold 3 years later for $220,000. What is the percentage gain on the original purchase price?
- A buyer puts 20% down on a $300,000 home. What is the loan amount?
- An investor purchases a rental property for $500,000. The annual NOI is $45,000. What is the cap rate?
- A rectangular lot measures 150 feet by 200 feet. What is the area in acres? (1 acre = 43,560 sq ft)
- A property is assessed at 20% of its market value of $400,000. The tax rate is 50 mills. What is the annual property tax?
- A property sells for $175,000. The seller owes 4.5 points on a $140,000 loan. What is the total cost of the points?
- An agent earns a 3% commission on a sale. The property sold for $265,000. How much did the agent earn?
- A commercial property generates a monthly gross rent of $8,500. Vacancies and credit losses run 5%. What is the annual Effective Gross Income?
- A property has a potential gross income of $120,000 annually, with a 6% vacancy rate and $30,000 in operating expenses. What is the NOI?
- A lot has a frontage of 80 feet and a depth of 120 feet. The price is $12 per square foot. What is the total price?
- A property is assessed at 25% of market value. The market value is $320,000. The tax rate is 40 mills. What are the annual taxes?
- An investor buys a property for $400,000, putting down 25%. What is the loan-to-value ratio?
- A rental property has a GRM of 110 and a monthly rent of $1,500. What is the estimated value?
- A house sells for $280,000. The seller pays a 5.5% commission. What is the net to the seller before other closing costs?
- A property depreciates $6,000 per year. It was purchased for $210,000, and the land was valued at $50,000. After 5 years, what is the depreciated value of the improvements?
- A mortgage of $180,000 at 6% annual interest. What is the interest charge for the first month?
- An apartment building has 8 units, each renting for $850 per month. Vacancy rate is 8%. What is the annual effective gross income?
- A listing agreement states the seller wants to net $185,000 after paying a 6% commission. What must the property sell for (rounded to nearest dollar)?
- A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain? (1 acre = 43,560 sq ft)
- A home is listed at $325,000. The buyer offers 4% below list price. What is the offer amount?
- A property sold for $198,000. Transfer taxes are $3.30 per $1,000 of purchase price. What are the transfer taxes?
- A buyer has a gross monthly income of $7,200. The lender's maximum front-end ratio is 28%. What is the maximum monthly PITI payment?
- A property was purchased for $150,000 and sold for $187,500. What is the percent of appreciation?
- A 30-year mortgage for $200,000 at 7% has a monthly payment factor of $6.65 per $1,000. What is the monthly payment (principal and interest)?
- A commission split is 60% to the selling agent and 40% to the listing agent. If the total commission is $12,600, how much does the selling agent earn?
- A property has a market value of $450,000. It is assessed at 20% of market value, and the tax rate is 45 mills. What are the annual property taxes?
- A buyer borrows $240,000 at 5.5% annual interest. What is the total interest for the first year (simple interest, no amortization)?
- An agent is paid 2.5% commission on a $385,000 sale. What is the commission?
- A property has a list price of $275,000 and sells for 97% of list price. What is the sale price?
- A commercial property generates $180,000 in annual NOI. An investor wants a 9% return. What is the maximum price the investor should pay?
- A 10-unit apartment building has monthly rent of $900 per unit. At 5% vacancy, what is the annual EGI?
- A lot is 100 feet wide and 200 feet deep, priced at $8.50 per square foot. What is the price?
- An investor bought a property at $200,000 and sold it 4 years later for $260,000. What is the average annual appreciation?
- A buyer needs to borrow $175,000. The lender charges 2 points. How much are the points?
- A house has 1,800 sq ft of gross living area. Two comparable homes sold at an average of $145 per sq ft. What is the estimated value of the subject?
- A property sells for $350,000 with a 6% commission. If the listing broker splits 50/50 with the buyer's broker, and the listing agent receives 70% of the listing broker's split, how much does the listing agent receive?
- Property taxes are paid in arrears in Arkansas. A property sells with a closing date of September 30. The annual taxes are $3,600. How much does the seller owe in prorated taxes?
- A building cost $500,000 to construct and has an economic life of 40 years. Using straight-line depreciation, what is the annual depreciation?
- An acre of land is 43,560 sq ft. A parcel is 5 acres. If it sells for $125,000 per acre, what is the total sale price?
- A property earns $24,000 in net annual income. If the cap rate is 6%, what is the estimated value?
- A property sells for $210,000. The buyer makes a 10% down payment. What is the loan amount?
- An annual mortgage payment is $18,000. The outstanding loan balance is $200,000. What is the debt service coverage ratio (DSCR) if NOI is $25,000?
- A home's assessed value is $120,000. The tax rate is 35 mills. What are the annual taxes?
- A home sold for $340,000. Closing costs were 3% of the sale price. What were the total closing costs?
- A buyer's total housing expense (PITI) is $1,400/month. Their gross monthly income is $5,000. What is their front-end ratio?
- A building was purchased for $600,000. The lot was valued at $100,000. Using straight-line depreciation over 30 years, what is the annual depreciation on the building?
- A property has a GRM of 130. The monthly rent is $1,200. What is the estimated market value?
- A 1031 (like-kind) exchange requires the replacement property to be identified within how many days of the sale?
- A building has a replacement cost of $350,000, effective age of 10 years, and economic life of 50 years. What is the accrued depreciation?
- A warehouse rents for $9.50 per square foot annually. The building is 15,000 sq ft. What is the annual rent?
- A commission of 5% was paid on a $420,000 sale. The selling office receives 55% of the total commission. How much does the selling office receive?
- A property's tax assessed value is $85,000. The mill rate is 48 mills. What is the annual tax?
- A seller nets $192,000 after paying a 4% commission. What was the sale price?
- A buyer's gross monthly income is $6,500. The lender allows a back-end ratio of 43%. The buyer's monthly car payment is $350, and student loans cost $200/month. What is the maximum monthly mortgage payment (PITI) allowed?
- A commercial property costs $900,000. Annual NOI is $72,000. What is the cap rate?
- A lot is described as the S 1/2 of the NW 1/4 of Section 5. How many acres does it contain?
- If a property sold for $275,000, which was 110% of the original purchase price, what was the original purchase price?
- A buyer takes a $220,000 loan at 5% for 30 years. The monthly payment factor is $5.37 per $1,000. What is the monthly P&I payment?
- A property with potential gross income of $60,000, vacancy rate of 10%, and operating expenses of $18,000 has an NOI of:
- A section of land is 640 acres. A farmer wants to purchase the W 1/2 of the SW 1/4 of the NW 1/4. How many acres is this parcel?
- A property appraised at $285,000. The buyer puts 5% down. What is the loan-to-value ratio?
- An agent receives a 30% referral fee from their broker on a $9,000 commission. How much does the agent receive?
- Annual property taxes are $3,960. Using the 360-day banking year method, what is the daily tax rate?
- A property sells for $315,000. The seller nets $288,900 after the commission. What is the commission rate?
- How many square feet are in 3.5 acres?
- A mortgage of $160,000 at 7.5% annual interest. What is the first month's interest charge?
- If a real estate investment generates $40,000 NOI annually and sells for $500,000 after 5 years, what cap rate did the investor achieve at purchase?
- A commercial lease is written as NNN at $15/sq ft for 5,000 sq ft. What is the annual base rent?
- If you invest $50,000 in a property and it generates $5,500 annual cash flow, what is your cash-on-cash return?
- A property has a purchase price of $750,000, LTV of 75%, and the interest rate is 6% on a 25-year loan. What is the loan amount?
- An agent sells 4 properties in a month. The total sales volume is $1,600,000. The average commission rate is 2.5%. The agent keeps 60% of their commission. How much does the agent earn?
- A property purchased 5 years ago for $200,000 is now worth $260,000. What is the total appreciation percentage?
- A listing expires after 90 days. The property was listed on March 1. When does the listing expire?
- A property owner wants to build a fence. The lot is 90 feet wide and 140 feet deep. If the fence will run the full perimeter, how many linear feet of fencing is needed?
- The annual property tax on a $250,000 home is $3,000. What is the effective tax rate?
- A 4-unit building rents for $1,100/month per unit. The cap rate is 7% and NOI represents 65% of gross income. What is the approximate property value?
- An owner purchased land for $80,000. A developer offers to purchase it for $120,000. What is the percent profit?
- An agent earns a 6% commission. The listing sells for $195,000. The agent's broker keeps 45% of the agent's commission. How much does the agent net?
- A seller accepts an offer of $245,000 on a home. The seller owes $178,000 on their mortgage and will pay a 6% commission and $2,400 in other closing costs. What is the seller's approximate net proceeds?
- A property has a gross annual rental income of $48,000, vacancy loss of 8%, and operating expenses of $15,000. What is the NOI?
- A borrower earns $95,000 annually. Lender requires a maximum back-end ratio of 43%. The borrower has monthly car and student loan payments totaling $800. What is the maximum monthly mortgage payment (PITI)?
- A building costs $280,000 to construct. The land is worth $70,000. Using straight-line depreciation over 35 years, what is the property's book value after 7 years?
- A commercial property has an asking price of $1,200,000. The NOI is $84,000. What is the cap rate and is it above or below the market average of 7%?
- A $300,000 loan at 4.5% interest for 30 years has a monthly factor of $5.07 per $1,000. What is the monthly payment?
- A lot is 75 feet by 125 feet. It is sold at $65 per square foot. What is the total sale price?
- The annual debt service (ADS) on a $400,000 loan is $27,500. What is the mortgage constant?
- A buyer wants to invest in a property with a 9% cap rate. The asking NOI is $63,000. What is the maximum price the buyer should pay?
- A property's purchase price was $180,000. The buyer put down 15% and financed the rest. Two years later the home is worth $210,000. What is the current LTV?
Land Use & Zoning
112 questions- A property owner wants to use their residentially zoned land for a small office. They apply for and receive approval for a use that doesn't conform to current zoning. This is called a:
- A property that was legally built before a zoning ordinance changed and now does not conform to current zoning is known as a:
- Private deed restrictions (restrictive covenants) in a subdivision differ from zoning because they:
- The government's police power allows municipalities to:
- The government's authority to regulate land use through zoning is based on its:
- A nonconforming use is:
- A variance is a zoning relief mechanism that allows a property owner to:
- A conditional use permit (special use permit) allows:
- A buffer zone in land use planning is typically used to:
- A master plan (comprehensive plan) in Arkansas is best described as:
- Spot zoning refers to:
- A setback requirement in a zoning ordinance specifies:
- In the subdivision process, a developer 'dedicates' streets and parks to the municipality. This means the developer:
- Exactions (or impact fees) imposed on a developer by a municipality are intended to:
- A variance is granted by a zoning authority to allow:
- A nonconforming use in zoning refers to:
- Eminent domain is the government's right to:
- Police power is the government's authority to:
- A special use permit (conditional use permit) allows:
- Escheat is the process by which:
- A deed restriction (restrictive covenant) differs from a zoning ordinance in that it is:
- A buffer zone in zoning is typically used to:
- A general (comprehensive) plan is best described as:
- Spot zoning is generally considered illegal because it:
- A setback requirement in zoning establishes:
- Floor Area Ratio (FAR) is a zoning tool that regulates:
- Inclusionary zoning requires developers to:
- A moratorium in land use planning refers to:
- Subdivision regulations typically govern:
- A taking by inverse condemnation occurs when:
- Planned Unit Development (PUD) zoning is designed to:
- The police power of government allows regulation of property without compensation. Which of the following is NOT an exercise of police power?
- Downzoning refers to:
- An Architectural Control Committee (ACC) in a homeowners association (HOA) typically:
- Environmental impact reports (EIRs) are required in Arkansas for major development projects to:
- A developer who files a plat map with the county for approval of a new subdivision is required to:
- Impact fees charged to developers are used to:
- The concept of transferable development rights (TDR) allows a property owner to:
- A nonconforming use is best described as:
- A variance is best described as:
- Eminent domain is the government's power to:
- Police power, as it relates to real estate, refers to the government's authority to:
- Escheat occurs when:
- A buffer zone in land use planning is used to:
- Subdivision regulations primarily govern:
- A floor area ratio (FAR) of 2.0 on a 10,000 sq ft lot allows a total building area of:
- A setback requirement specifies:
- Planned Unit Development (PUD) zoning typically allows:
- A taking without just compensation, caused by a regulation that deprives an owner of all economically beneficial use of their property, is known as:
- A comprehensive (master) plan in land use:
- Building codes in Arkansas primarily regulate:
- A certificate of occupancy (CO) is issued when:
- Dedications in the context of subdivision development refer to:
- A density bonus is typically offered to developers who:
- Impact fees charged to developers by local governments are used to:
- Transferable development rights (TDR) programs allow property owners to:
- Conservation easements in Arkansas allow a landowner to:
- An overlay district in zoning is:
- In Arkansas, who typically has authority to approve a rezoning request?
- The Takings Clause of the Fifth Amendment requires that when the government takes private property, it must:
- Inverse condemnation occurs when:
- Agricultural zoning primarily seeks to:
- A municipality's decision to rezone a single property from residential to commercial use, inconsistent with surrounding zoning, may be challenged as:
- The National Flood Insurance Program (NFIP) requires flood insurance for:
- A Historic Preservation designation on a property typically:
- Wetlands regulations in Arkansas and federally (Section 404 of the Clean Water Act) restrict:
- Exactions in land use law refer to:
- A 'form-based code' differs from traditional zoning in that it:
- Which of the following best describes 'infill development'?
- Which of the following describes 'spot zoning' in a negative context?
- A use variance allows a property owner to:
- An area variance (bulk variance) allows a property owner to:
- Zoning ordinances in Arkansas are enacted by:
- A property owner who disagrees with a zoning board's denial of a variance may:
- A conditional use permit differs from a variance in that a conditional use permit:
- What is the purpose of a 'recorded plat' in real estate?
- Which term describes the process of combining two or more adjacent parcels into one larger parcel?
- Environmental impact statements required under NEPA are primarily used to:
- Which of the following is the primary tool used in comprehensive land use planning?
- Euclidean zoning refers to the traditional form of zoning that:
- A 'use by right' in zoning means:
- Which environmental law requires developers to assess the impact of construction on wetlands and waterways?
- Transit-oriented development (TOD) is characterized by:
- The concept of 'highest and best use as vacant' asks:
- Brownfields are defined as:
- Arkansas State Highway and Transportation Department (AHTD) can acquire land through:
- The Arkansas State Plant Board regulates which of the following that can affect real estate values?
- New Urbanism as a planning philosophy promotes:
- A 'Right to Farm' law in Arkansas primarily protects:
- Aesthetic zoning refers to:
- The term 'infill' in real estate development typically refers to:
- An 'in-lieu fee' in the context of affordable housing means:
- A real estate professional should advise a client purchasing commercial property to check:
- A 'development agreement' between a municipality and a developer typically:
- Which of the following activities is regulated by the Army Corps of Engineers under Section 404 of the Clean Water Act?
- A floodplain map used to determine insurance requirements is known as a(n):
- In Arkansas, municipalities may annex adjacent unincorporated territory under certain conditions. This affects real estate because annexation:
- Which type of zone typically allows for a combination of residential units and retail on the ground floor?
- Urban growth boundaries (UGBs) are designed to:
- A 'living' or 'green' building certification (such as LEED) typically affects real estate value by:
- The primary purpose of a 'dark store' theory in property tax assessment litigation is:
- Which element is most important in determining whether a use constitutes a legally nonconforming use in Arkansas?
- An easement for electrical transmission lines across private property is an example of:
- A 'taking' as defined in constitutional law requires compensation when:
- A 'permitted use' in a zoning ordinance means the use:
- Inclusionary zoning that mandates affordable housing is generally considered:
- Which of the following best describes the purpose of a building permit?
- A municipality's decision to require developers to pay for parkland or provide open space as a condition of subdivision approval is an example of:
- Under Arkansas's Subdivision of Land Act, who is primarily responsible for approving preliminary plats?
- Which of the following best describes 'smart growth' principles in land use planning?
- When an Arkansas city adopts a new zoning ordinance that would make an existing business nonconforming, the business may typically continue to operate because of:
- A property owner in Arkansas who wants to build a fence 2 feet higher than the maximum allowed under the zoning ordinance must apply for a(n):
Environmental
66 questions- Federal law requires that sellers of residential property built before 1978 disclose:
- Radon is a naturally occurring radioactive gas that enters buildings through foundation cracks. The EPA action level at which mitigation is recommended is:
- The federal Superfund law (CERCLA) holds property owners liable for cleanup of hazardous waste contamination on their property even if they did not cause it. This principle is known as:
- Asbestos-containing materials (ACM) that are undisturbed and in good condition in a building are typically handled by:
- The federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) — commonly known as Superfund — does which of the following?
- Under the Residential Lead-Based Paint Hazard Reduction Act, sellers of pre-1978 homes must:
- Radon is a naturally occurring radioactive gas that enters buildings primarily from:
- Underground storage tanks (USTs) are of concern in real estate transactions primarily because they may:
- Which environmental hazard is associated with naturally occurring fibrous silicate minerals once widely used in insulation and fireproofing in buildings constructed before the 1980s?
- Radon gas enters buildings primarily through:
- Under the federal Residential Lead-Based Paint Hazard Reduction Act, sellers of pre-1978 housing must:
- A Phase I Environmental Site Assessment (ESA) involves:
- CERCLA (Superfund) imposes liability for hazardous waste cleanup on:
- Underground storage tanks (USTs) are a concern in real estate transactions primarily because:
- Polychlorinated biphenyls (PCBs) are most likely found in:
- The National Environmental Policy Act (NEPA) requires:
- Urea-formaldehyde foam insulation (UFFI) was used widely in homes during the 1970s and is a concern because it:
- The Clean Water Act regulates:
- Brownfields are best described as:
- Electromagnetic fields (EMFs) in real estate are primarily associated with:
- The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is also known as:
- A seller is required to disclose the presence of a known underground oil storage tank under:
- Wetland regulations in Arkansas can affect a property owner's development rights because:
- An innocent landowner defense under CERCLA can protect a property owner from liability if they can show:
- Mold in a property is most commonly caused by:
- Underground Storage Tanks (USTs) are regulated under which federal law?
- Asbestos in a home is most dangerous when it is:
- The National Environmental Policy Act (NEPA) requires federal agencies to:
- Lead-based paint disclosure is required for residential properties built before:
- Radon is a naturally occurring radioactive gas that comes from:
- PCBs (polychlorinated biphenyls) are primarily found in older commercial/industrial buildings in:
- The Environmental Protection Agency's (EPA) Action Level for lead in drinking water is:
- Brownfield redevelopment is encouraged by the EPA's Brownfields Program primarily through:
- A Phase II Environmental Site Assessment (ESA) is conducted when:
- The Toxic Substances Control Act (TSCA) specifically regulates:
- Oil and gas rights in Arkansas that have been severed from the surface rights can be:
- The primary risk from drinking water with elevated arsenic levels is:
- Which federal law requires disclosure of lead-based paint hazards in housing built before 1978?
- Carbon monoxide in a home is most commonly produced by:
- Which Arkansas state agency primarily regulates water quality and environmental permits for development projects?
- Agricultural drains and drainage ditches on farmland in Arkansas are significant in real estate because they may:
- Which federal law governs the disposal of solid and hazardous waste and includes requirements for underground storage tanks?
- The discovery of methamphetamine manufacturing in a property requires:
- Which of the following best describes 'sick building syndrome'?
- The EPA requires that real estate agents and sellers provide buyers of pre-1978 homes with how many days to conduct a lead-based paint inspection?
- Formaldehyde off-gassing in homes is most commonly associated with:
- Which of the following describes the 'innocent landowner defense' under CERCLA?
- When is a Phase I Environmental Site Assessment (ESA) typically required?
- Electromagnetic fields (EMFs) near high-voltage power lines are considered:
- Naturally occurring asbestos (NOA) in soil and rock can be found in certain geological areas of the United States and may:
- A 'no further action' (NFA) letter or 'certificate of completion' from a state environmental agency indicates:
- The Arkansas Natural Resources Division (formerly ASWCC) regulates:
- An environmental covenant (institutional control) is used to:
- A vapor intrusion assessment is needed when:
- In Arkansas, which type of property is most likely to trigger an environmental due diligence assessment?
- The Safe Drinking Water Act (SDWA) requires:
- Which of the following is an example of a 'recognized environmental condition' (REC) as defined in ASTM's Phase I ESA standard?
- Arkansas's Pollution Control and Ecology Act (APC&E Act) is the primary state environmental law governing:
- Chlorinated solvents (like TCE and PCE) used by dry cleaners and industrial facilities are significant environmental concerns because:
- Natural gas (methane) migration from landfills to adjacent properties is regulated because:
- The Endangered Species Act (ESA) affects real estate development when:
- The Arkansas Department of Energy and Environment can issue a 'Voluntary Cleanup Program' (VCP) certificate to a property owner who has:
- A Covenant Not to Sue (CNTS) from a state environmental agency provides what benefit to a buyer of contaminated property?
- Hydraulic fracturing ('fracking') for natural gas in Arkansas has raised concerns primarily related to:
- The Clean Air Act regulates which of the following that can affect property values near industrial areas?
- When purchasing commercial or investment property in Arkansas, what is the primary reason a buyer should conduct environmental due diligence?
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