Arkansas Real Estate License Real Estate Contracts Questions and Answers

Question 1

A buyer submits a written offer to purchase a home in Little Rock.
The seller, unhappy with the price, changes the purchase price to a higher amount, initials the change, and sends the document back to the buyer's agent.
What is the legal status of the document at this point?

Accepted Answer

A counteroffer, which terminates the original offer.

Answer

A valid, binding contract at the new price.

Answer

An executed contract with a pending amendment.

Answer

A voided offer that requires both parties to start over with a new form.

Question 2

Under the Arkansas Statute of Frauds, which of the following agreements is required to be in writing to be legally enforceable?

Accepted Answer

A contract for the sale of a parcel of land.

Answer

A six-month residential lease agreement.

Answer

An agreement between two brokers to share a commission.

Answer

A month-to-month rental agreement.

Question 3

Which of the following is NOT an essential element for the formation of a valid and legally binding real estate sales contract in Arkansas?

Accepted Answer

An earnest money deposit.

Answer

Mutual assent (offer and acceptance).

Answer

Consideration.

Answer

Legally competent parties.

Question 4

A buyer and seller in Fayetteville have a signed purchase agreement. The seller subsequently refuses to complete the sale, even though the buyer has met all of their obligations. Because real estate is considered unique, what is the most likely legal remedy the buyer will seek to force the sale?

Accepted Answer

Specific performance

Answer

Rescission

Answer

Liquidated damages

Answer

Reformation

Question 5

In a typical Arkansas residential real estate transaction involving a licensed agent, when should the Seller's Property Disclosure form be delivered to the buyer?

Accepted Answer

Before the buyer signs an offer to purchase.

Answer

Within three business days after the contract is accepted.

Answer

At the time of the home inspection.

Answer

During the final walk-through before closing.

Question 6

A buyer includes a financing contingency in their offer to purchase a home. After making a good faith effort, the buyer is officially denied a loan by their lender. According to the terms of a standard financing contingency, what is the most likely outcome?

Accepted Answer

The contract can be terminated, and the buyer's earnest money is returned.

Answer

The buyer must forfeit their earnest money to the seller.

Answer

The seller can sue the buyer to force them to complete the purchase.

Answer

The buyer is obligated to seek financing from an alternative lender.