An Arkansas real estate salesperson enters into a listing agreement with a seller. During the listing period, the salesperson's sponsoring broker dies. What is the status of the listing agreement?

The listing agreement is immediately terminated upon the death of the broker.. A listing agreement is a contract between the seller and the broker. The death of the broker typically terminates the agency relationship and, consequently, the listing agreement, as the salesperson's authority to act is derived from the employing broker.

A buyer makes an offer on a property listed by another brokerage. The offer includes a financing contingency and an inspection contingency. The seller accepts the offer. Later, the buyer's lender informs them that the appraisal came in significantly lower than the purchase price, making it impossible to obtain the loan as written. What is the most likely outcome for the buyer's earnest money deposit, assuming the contract is structured with standard contingency clauses?

The buyer will likely recover the earnest money deposit because the financing contingency was not met.. When a financing contingency is included in the purchase agreement, the buyer is typically entitled to the return of their earnest money if they are unable to secure financing as outlined in the contingency, provided they have made a good-faith effort. The low appraisal directly impacts their ability to obtain the loan.

An Arkansas real estate licensee is representing both the buyer and the seller in a transaction. This is an example of:

Dual agency, which is permissible with full disclosure and written consent.. Representing both parties in a transaction is known as dual agency. In Arkansas, dual agency is legal, but it requires informed consent from both the buyer and the seller, usually documented in writing, and involves limitations on the fiduciary duties owed to each party.

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Free Arkansas Real Estate Salesperson Exam practice test with 50 realistic multiple-choice questions, instant grading, and explanations. Study with drill mode, category score reports, and a personalized review plan.

Exam format

50 multiple-choice practice questions
Drill mode with instant feedback and explanations after each answer

Study tips

Review the official exam content outline before your first practice run.
Take the full practice exam once to establish a baseline score by category.
Focus review on categories where you score below the passing threshold.
Re-take missed questions in drill mode until you can explain each correct answer.
Schedule the real exam only after consistent passing scores on practice tests.

Sample Arkansas Real Estate practice questions

Try a few representative questions below. Each includes the correct answer and a short explanation — the same style you'll see in the full practice test.

Question 1Agency Law
An Arkansas real estate salesperson enters into a listing agreement with a seller. During the listing period, the salesperson's sponsoring broker dies. What is the status of the listing agreement?
- A.The listing agreement is immediately terminated upon the death of the broker.(Correct)
- B.The listing agreement becomes voidable at the seller's discretion.
- C.The listing agreement remains in full force and effect until its expiration date.
- D.The listing agreement is suspended and can be reinstated by a new broker within 30 days.
Explanation
A listing agreement is a contract between the seller and the broker. The death of the broker typically terminates the agency relationship and, consequently, the listing agreement, as the salesperson's authority to act is derived from the employing broker.
Question 2Contracts and Contingencies
A buyer makes an offer on a property listed by another brokerage. The offer includes a financing contingency and an inspection contingency. The seller accepts the offer. Later, the buyer's lender informs them that the appraisal came in significantly lower than the purchase price, making it impossible to obtain the loan as written. What is the most likely outcome for the buyer's earnest money deposit, assuming the contract is structured with standard contingency clauses?
- A.The buyer will forfeit the earnest money deposit because they failed to secure financing.
- B.The buyer will likely recover the earnest money deposit because the financing contingency was not met.(Correct)
- C.The seller can demand the earnest money deposit as liquidated damages for the failed sale.
- D.The earnest money deposit will be split equally between the buyer and the seller.
Explanation
When a financing contingency is included in the purchase agreement, the buyer is typically entitled to the return of their earnest money if they are unable to secure financing as outlined in the contingency, provided they have made a good-faith effort. The low appraisal directly impacts their ability to obtain the loan.
Question 3Agency Law
An Arkansas real estate licensee is representing both the buyer and the seller in a transaction. This is an example of:
- A.Non-agency, where the licensee acts as a facilitator without fiduciary duties.
- B.Exclusive agency, which prohibits representation of both parties.
- C.Subagency, which involves representing the buyer as an agent of the seller's broker.
- D.Dual agency, which is permissible with full disclosure and written consent.(Correct)
Explanation
Representing both parties in a transaction is known as dual agency. In Arkansas, dual agency is legal, but it requires informed consent from both the buyer and the seller, usually documented in writing, and involves limitations on the fiduciary duties owed to each party.

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Frequently asked questions

How many questions are on this Arkansas Real Estate practice test?

This practice test includes 50 multiple-choice questions designed to mirror the format and difficulty of the real Arkansas Real Estate Salesperson Exam.

Is this Arkansas Real Estate practice test free?

Yes. You can start practicing for free. Create an account to save progress, track weak categories, and retake the exam.

Do I get explanations after each question?

Yes. In drill mode you see why the correct answer is right, why distractors are wrong, and practical examples where relevant.

How should I use this practice test to prepare?

Take the full exam under timed conditions, review missed questions by category, then focus study on your weakest sections before scheduling the real exam.

Does this replace official exam materials?

No. Use this as a supplement alongside official candidate information bulletins, textbooks, and hands-on experience required for your license or certification.

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