Arkansas Real Estate License Arkansas Real Estate License Real Estate Contracts Questions and Answers 3

Question 1

In Arkansas, which document is typically used to transfer equitable title to a buyer before closing?

Accepted Answer

Executory purchase agreement

Answer

Warranty deed

Answer

Quitclaim deed

Answer

Bill of sale

Question 2

What remedy is a court most likely to grant when a seller refuses to complete an Arkansas real estate transaction despite a valid contract?

Accepted Answer

Specific performance

Answer

Criminal prosecution

Answer

Automatic title transfer

Answer

Punitive damages only

Question 3

Under Arkansas law, which of the following contract modifications must be in writing to be enforceable?

Accepted Answer

All changes to a real estate contract must be in writing

Answer

Changing the move-in date by one day

Answer

Extending the inspection period by a week

Answer

Increasing the purchase price by $50,000

Question 4

In an Arkansas real estate transaction, what is earnest money primarily intended to demonstrate?

Accepted Answer

The buyer's good faith intent to complete the purchase

Answer

The buyer's ability to qualify for a mortgage

Answer

The seller's agreement to the listing price

Answer

Compliance with Arkansas Real Estate Commission regulations

Question 5

Which of the following best describes the doctrine of merger as it applies to Arkansas real estate closings?

Accepted Answer

All prior agreements are merged into the deed upon delivery

Answer

The buyer and seller's identities merge into a single legal entity

Answer

Multiple parcels are combined into one legal description

Answer

The mortgage and note become a single instrument

Question 6

An Arkansas buyer discovers after closing that the seller failed to disclose a known foundation defect. What is the buyer's strongest legal basis for a claim?

Accepted Answer

Fraudulent concealment

Answer

Breach of the as-is clause

Answer

Violation of the Arkansas Deceptive Trade Practices Act

Answer

Failure to provide a home warranty