Free Arkansas Unified Real Estate Broker Examination Practice Questions

Sample Practice Questions

Try these 10 sample questions from the Arkansas Unified Real Estate Broker Examination practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1An Arkansas principal broker asks which official has the Commission's delegated non-rulemaking and non-adjudicative powers in day-to-day administration. Who holds that authority?

   1. A. The Commission director or the director's designee
   2. B. The chair of the Recovery Fund board
   3. C. The county recorder where the firm is located
   4. D. The firm's designated executive broker

   Answer: A

   Explanation: Commission Regulation 2.1(b) provides: "All duties, authority and powers given the Commission by law, except Regulation making and adjudicative powers, are hereby delegated to the director, or the director's designee." The director or designee therefore holds the described administrative authority.

   Reference: Arec Rules April (2024) — § 2.1(b)

2. 2An unlicensed salaried leasing employee receives a tenant's rent check. To remain within Arkansas's employee exemption, to whom must the check be made payable?

   1. A. The principal broker, real estate firm, property management broker, or owner
   2. B. The employee personally
   3. C. Any maintenance contractor selected by the tenant
   4. D. The local real estate trade association

   Answer: A

   Explanation: Ark. Code Ann. § 17-42-104(a)(6)(B)(iii) permits the employee to receive a payment for delivery only when it is "made payable to the principal broker, real estate firm, property management broker, or owner." A payment to the employee personally falls outside that condition.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-104(a)(6)(B)(iii)

3. 3An Arkansas broker learns facts that may constitute a violation of the Commission Regulations. What is the broker's reporting duty?

   1. A. Report the information in writing to the Commission
   2. B. Wait for a court judgment before communicating
   3. C. Report only if the broker suffered a financial loss
   4. D. Send the information only to a trade association

   Answer: A

   Explanation: Commission Regulation 10.14 states: "It is the duty of each licensee to report in writing to the Commission any information coming to the licensee's knowledge which is or may be" a violation of the License Law or Regulations. A final judgment is not a prerequisite.

   Reference: Arec Rules April (2024) — § 10.14

4. 4A buyer asks how a VA-backed home loan is funded. Which arrangement describes this loan type?

   1. A. VA makes the loan directly to the eligible buyer
   2. B. A private lender makes the loan and VA guarantees part
   3. C. An FHA-approved lender makes an FHA-insured loan
   4. D. A private lender makes a loan with conventional PMI

   Answer: B

   Explanation: VA states, "With a VA-backed home loan, we guarantee (or stand behind) a portion of the loan you get from a private lender." Direct VA lending, FHA-insured lending, and conventional lending with PMI are different loan arrangements; only B matches the VA-backed structure.

   Reference: VA Home Loan Types — VA Home Loan Types, How does a VA-backed home loan work?

5. 5A salesperson prepares an instrument connected with an Arkansas real estate sale. What level of broker involvement is required?

   1. A. Preparation by or under the specific supervision of the principal broker
   2. B. Review only by another salesperson after closing
   3. C. Approval only by the local assessor
   4. D. No supervision if a standard form is used

   Answer: A

   Explanation: Commission Regulation 10.4(d)(1) says: "The preparation of instruments in connection with a real estate rental or sale and the closing of a sale by a licensee must be performed by or under the specific supervision of the principal broker." Specific principal-broker supervision is required.

   Reference: Arec Rules April (2024) — § 10.4(d)(1)

6. 6An Arkansas seller's agent also acts as a subagent for other sellers. Does that fact alone breach the agent's duty to the first seller?

   1. A. Yes, in every case
   2. B. No, Arkansas law says that conduct alone is not a breach
   3. C. Yes, unless the Commission attends the closing
   4. D. No, but only when all properties have the same owner

   Answer: B

   Explanation: Ark. Code Ann. § 17-42-317(b) says the licensee does not breach the duty "by acting as an agent or subagent for other sellers or lessors." That fact alone is not a breach.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-317(b)

7. 7Before offering a property for which an Arkansas licensee accepted the agency, what investigative effort is required regarding the property's value or desirability?

   1. A. Reasonable efforts to ascertain material facts
   2. B. A licensed appraisal of every material characteristic
   3. C. A professional inspection of every property system
   4. D. A title examination of every recorded encumbrance

   Answer: A

   Explanation: Commission Regulation 10.6 requires a licensee to "exert reasonable efforts to ascertain those facts which are material to the value or desirability" of each property accepted for agency. Reasonable investigation, not a guarantee, is required.

   Reference: Arec Rules April (2024) — § 10.6

8. 8An Arkansas real estate licensee who is not acting as an appraiser prepares a written price estimate for a potential listing. Which proposed report heading uses the authorized terminology?

   1. A. Appraised value report
   2. B. Market value appraisal
   3. C. Broker price opinion
   4. D. Certified appraisal report

   Answer: C

   Explanation: Ark. Code Ann. § 17-42-110(d) provides that a broker's price opinion or market analysis "shall not contain the terms “market value”, “appraised value”, or “appraisal”." Calling it a broker price opinion preserves the authorized category; the other labels use forbidden appraisal or market-value terminology.

   Reference: Arkansas Real Estate License Law — Ark. Code Ann. § 17-42-110(d)

9. 9Under a contract for deed for a home, when does the buyer ordinarily receive the deed and legal title from the seller?

   1. A. At the signing of the installment contract
   2. B. At the first monthly installment payment
   3. C. When the installment contract is fulfilled
   4. D. When the buyer first takes possession

   Answer: C

   Explanation: CFPB explains, "The seller keeps the deed to the property until the contract is fulfilled." Contract signing, the first payment, and possession therefore do not by themselves transfer the deed or legal title under this arrangement.

   Reference: CFPB Contract for Deed — What is a contract for deed?, answer

10. 10An Arkansas principal broker plans to begin managing an owner's residential rental property. Before management begins, which current written agreement must exist?

    1. A. A current listing agreement between owner and brokerage
    2. B. A current management agreement between owner and manager
    3. C. A current lease agreement between owner and tenant
    4. D. A current service agreement with a maintenance contractor

    Answer: B

    Explanation: 17 CAR § 220-1017(a)(1) says the broker "must not engage in the management of residential rental real estate without a written, current property management agreement between the owner and the property manager." A listing, tenant lease, or maintenance agreement serves another transaction purpose.

    Reference: Code of Arkansas Rules, 17 CAR Part 220 — 17 CAR § 220-1017(a)(1)