Free Arkansas Real Estate Salesperson Examination — Arkansas Law Portion Practice Questions

Sample Practice Questions

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

1. 1Which action is expressly within the Arkansas Real Estate Commission's general statutory authority?

   1. A. Promulgating necessary or desirable rules to carry out the license law
   2. B. Setting county property-tax millage rates
   3. C. Issuing municipal building permits
   4. D. Recording deeds for county circuit clerks

   Answer: A

   Explanation: Ark. Code Ann. § 17-42-203(a) states: "The Arkansas Real Estate Commission may do all things necessary and convenient for carrying into effect the provisions of this chapter and may from time to time promulgate necessary or desirable rules." Thus rulemaking for the license law is a Commission power.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-203(a), page 9

2. 2An unlicensed person performs one compensated act that Arkansas law defines as brokerage. Which statement is correct?

   1. A. One act is exempt if no closing occurs
   2. B. One act constitutes a license-law violation
   3. C. Three acts are required before licensure is necessary
   4. D. The act is exempt if compensation is under $500

   Answer: B

   Explanation: Ark. Code Ann. § 17-42-301(c) states: "The commission of a single act by a person required to be licensed under this chapter and not so licensed shall constitute a violation of this chapter." Neither closing nor a compensation threshold creates the proposed exemptions.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-301(b)-(d), page 12

3. 3How long must a principal broker generally retain the transaction records required by Arkansas Regulation 10.7?

   1. A. One year
   2. B. Two years
   3. C. Three years, or longer if law requires
   4. D. Seven years in every case

   Answer: C

   Explanation: Regulation 10.7(b)(3) requires: "All records required by Regulation 10.7 shall be maintained by the principal broker for three (3) years or such time as may be required by law, whichever is greater." Therefore three years is the baseline, subject to a longer legal period.

   Reference: Arec Commission Regulations (2024) — Arkansas Real Estate Commission Regulation § 10.7(b)(3), page 26

4. 4Which Arkansas licensee may accurately use the title “Realtor” in advertising?

   1. A. Every person holding any Arkansas real estate license
   2. B. Only a member of the applicable Realtors association
   3. C. Every salesperson with an active license for one year
   4. D. Only a principal broker, regardless of membership

   Answer: B

   Explanation: AREC explains: "the term “Realtor” is a trademark for a member of the National Association of Realtors and in Arkansas, a member of the Arkansas Realtors Association." A real estate license alone does not confer that trade-organization title.

   Reference: IS PROPERTY CONDITION DISCLOSURE REQUIRED BY LAW? - Arkansas Real Estate Commission — Discussion distinguishing licensed real estate agents from Realtors

5. 5A licensee represents only the seller. By what latest event must the licensee disclose that relationship to a prospective buyer?

   1. A. Before the buyer signs any transaction-related document
   2. B. Within three days after acceptance
   3. C. At the closing table
   4. D. Only when the buyer directly asks

   Answer: A

   Explanation: Regulation 8.1(c) states: "such disclosure must be made before the buyer or lessee signs any document related to the transaction." The timing protects against eliciting confidential buyer information before disclosure.

   Reference: Arec Commission Regulations (2024) — Arkansas Real Estate Commission Regulation § 8.1(a)-(c), page 20

6. 6At an Arkansas Real Estate Commission proceeding, who has express statutory power to administer an oath?

   1. A. Only a county clerk
   2. B. The Commission
   3. C. Only a circuit judge
   4. D. The testing vendor

   Answer: B

   Explanation: Ark. Code Ann. § 17-42-203(b) provides: "The commission shall have power to administer oaths." The Commission therefore need not rely exclusively on a court or clerk for that act.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-203(b), page 9

7. 7Which Arkansas license type may supervise associate brokers and salespersons while working under a principal broker?

   1. A. Associate broker
   2. B. Salesperson
   3. C. Executive broker
   4. D. Property management associate

   Answer: C

   Explanation: Ark. Code Ann. § 17-42-103(7)(B) states: "An executive broker may supervise associate brokers and salespersons." By contrast, an associate broker has no supervisory authority over another licensee.

   Reference: Ar Real Estate License Law April (2026) — Ark. Code Ann. § 17-42-103(1), (7), page 2

8. 8A salesperson handles a transaction through another firm without permission from the supervising principal or executive broker. What presumption applies?

   1. A. The salesperson has created an automatic co-brokerage
   2. B. The activity is permitted if the client consents
   3. C. The salesperson is presumed to have committed a sanctionable license-law violation
   4. D. The salesperson merely owes a transfer fee

   Answer: C

   Explanation: Regulation 10.1(b) states that a salesperson who acts independently or through another broker without permission "shall be presumed to be in violation of A.C.A. § 17-42-311 and subject to appropriate sanctions." Client consent does not substitute for broker permission.

   Reference: Arec Commission Regulations (2024) — Arkansas Real Estate Commission Regulation § 10.1(b), page 24

9. 9A salesperson learns facts that may constitute a violation of Commission regulations. What is the salesperson's duty?

   1. A. Report the information in writing to the Commission
   2. B. Wait for a consumer to file a complaint
   3. C. Report only if the conduct caused monetary damage
   4. D. Tell only the local trade association

   Answer: A

   Explanation: 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 (1) a violation of the Arkansas Real Estate License Law; or (2) a violation of the Commission Regulations." Thus a possible regulatory violation triggers written reporting.

   Reference: Arec Commission Regulations (2024) — Arkansas Real Estate Commission Regulation § 10.14, page 30

10. 10A seller's agent discloses the agency relationship to the buyer's licensed agent. Who must convey it to the buyer?

    1. A. The closing agent
    2. B. The buyer's licensed agent
    3. C. The seller personally
    4. D. The Commission

    Answer: B

    Explanation: Regulation 8.1(a)(2) says: "When the disclosure is made to the licensed agent of the buyer or lessee, it is that licensee's duty to convey the disclosure to the buyer or lessee in a timely manner." The recipient agent owns the relay duty.

    Reference: Arec Commission Regulations (2024) — Arkansas Real Estate Commission Regulation § 8.1(a)(2), page 20