Exam Cheat Sheet · Quick Reference
Arkansas Real Estate Salesperson State Portion
Arkansas · Pearson Vue
Verified, not estimated. Every figure below is drawn from the official exam structure we maintain — question counts, passing standard and topic weighting. Practice questions are grounded in the source law with statute citations. We omit any figure we can't verify rather than guess at it.
Total questions
110
30 state + 80 national
Passing score
70%
each portion
Exam time
240 min
≈ 4 hr, one sitting
Administered by
Pearson Vue
Format
Closed-book
Arkansas State Portion 30 questions
Duties and Powers of the Real Estate Commission
4 Q · 13%
General powers of the CommissionExamination of recordsInvestigations, hearings, and appealsLicense suspension, revocation, sanctions, and monetary penaltiesRecovery Fund
Agency Relationships and Disclosures
8 Q · 27%
Seller or lessor agentsBuyer or lessee agentsDual agency and consentFailure to disclose agency representationFidelity and honest dealingRequired and waivable duties
Other Statutory Requirements
2 Q · 7%
Membership in trade organizationReporting violationsCriminal convictions and disciplinary actionsViolation of law or regulationsTime-shares
Statutory Requirements Governing the Activities of Licensees
14 Q · 47%
Dealing independently of principal brokerExpiration date for agency contractsBroker responsibilities; executive and part-time brokersAdvertisingKnowledge of propertyHandling of funds and maintenance of recordsTrust funds and trust accountsDisbursement of trust fundsAgreements to be in writingSelf-dealingSales contractAgency agreements and signage
+2 more
Licensing Requirements
2 Q · 7%
Activities requiring a license and exemptionsTypes of licensesEligibility and requirements for licensingLicense renewalChange in license status or assignmentChange in licensee information (name and addresses)Place of business requirements
National Portion 80 questions
Property Ownership
8 Q · 10%
Real vs personal propertyLand characteristics and legal descriptions (metes & bounds, lot & block, government survey)Measuring structures and land measurementEncumbrances: liens, easements, encroachments, subsurface/air/water rightsTypes of ownership: severalty, tenants in common, joint tenancy, common-interest, trusts, business entities, life estate
Land Use Controls
4 Q · 5%
Government rights in land: taxes, special assessments, eminent domain, escheatGovernment controls on land use: zoning, building codes, environmental regulationsPrivate controls: deed conditions, CC&Rs, HOA/condo bylaws
Valuation and Market Analysis
6 Q · 8%
Appraisals: when required, licensed/certified appraiser requirements, appraisal processEstimating value: economic principles affecting valueSales comparison approachCost approachIncome analysis approach (GRM, cap rate)Comparative Market Analysis (CMA), Broker Price Opinion (BPO), Automated Valuation Models (AVM)
Financing
8 Q · 10%
Loan terminology: points, LTV, PMI, PITI, underwriting criteriaMortgage clauses, promissory notes, deeds of trustLoan types: conventional, amortized, ARM, FHA, VA, USDA, owner financing, reverse mortgage, HELOC, construction, bridgeLending legislation: RESPA, Truth in Lending (Reg Z), TRID, Equal Credit Opportunity ActSecondary mortgage market: Fannie Mae, Freddie Mac, Ginnie Mae
Contracts
15 Q · 19%
General contract law: valid elements, Statute of Frauds, offer and acceptanceContract enforceability: void, voidable, unenforceable contractsBilateral vs unilateral contracts, option contractsElectronic signatures and digital transactionsRights, obligations, and breach remediesPurchase agreements: addenda, amendments, contingenciesLease contracts: types of leases, lease-purchase agreementsMultiple offers and counteroffers
Agency
10 Q · 13%
Agency vs non-agency relationshipsListing contracts: exclusive right-to-sell, exclusive agency, open listing, net listingBuyer brokerage and buyer representation agreementsTransaction brokers and facilitatorsPower of attorney, termination of agencyFiduciary duties: obedience, loyalty, disclosure, confidentiality, accounting, reasonable care (OLD CAR)Duties to customers and non-clientsAgency disclosure requirements and conflict of interest
Property Disclosures
6 Q · 7%
Property condition disclosures: seller disclosure requirements, inspections, surveysRed flags and material defectsEnvironmental disclosures: lead-based paint, asbestos, radon, mold, underground storage tanksGovernment disclosures: flood zones, wetlands, endangered speciesMaterial facts and duty to disclose
Property Management
2 Q · 3%
Tenant procurement and qualificationFair housing compliance in property management and ADAMarket analysis for establishing rentsLandlord/tenant rights and obligations
Transfer of Title
5 Q · 6%
Types of deeds: general warranty, special warranty, quitclaim, bargain and saleTitle insurance: owners vs lenders policies, title searches, title problemsClosing process: recordation, settlement statements, warrantiesSpecial processes: foreclosure, short sale, deed in lieu, probate
Practice of Real Estate
10 Q · 12%
Federal Fair Housing Act: protected classes, prohibited conduct, exemptionsAmericans with Disabilities Act (ADA) requirementsAntitrust laws: price fixing, group boycotts, market allocation, tie-in agreementsDo-Not-Call Registry and telemarketing rulesSocial media and internet advertising regulationsHandling earnest money and trust fundsDue diligence and fiduciary responsibilitiesIndependent contractor vs employee status
Real Estate Calculations
6 Q · 7%
Seller net proceeds calculationsBuyer funds required at closingProrations: taxes, insurance, rent, HOA duesTransfer tax and recording fee calculationsPITI (Principal, Interest, Taxes, Insurance) calculationsCommission calculations and splitsEquity, capitalization rate, and LTV calculationsDiscount points and origination feesArea and volume conversions (sq ft, acres)
Key Distinctions
Joint tenancyvsTenancy in common
Joint tenancy carries the right of survivorship with equal interests, so a deceased owner's interest automatically passes to the surviving joint tenants without probate, while tenancy in common allows unequal shares and each owner's interest passes to their heirs.
Easement appurtenantvsEasement in gross
An easement appurtenant benefits a specific parcel (the dominant estate) and transfers automatically with that land, while an easement in gross benefits a person or entity (e.g., a utility company) and has no dominant tenement.
Fannie Mae / Freddie MacvsGinnie Mae (GNMA)
Fannie Mae and Freddie Mac are GSEs that purchase mortgages (Fannie Mae primarily conventional loans) in the secondary market, while Ginnie Mae neither buys nor sells loans but guarantees securities issued by private offerors and backed by FHA-insured, VA-guaranteed, and USDA loans.
Modern Real Estate Practice (22nd ed.), Unit 13 – Ginnie Mae (operational role distinction)Exclusive agency listingvsExclusive right-to-sell listing
Under an exclusive agency listing the seller keeps the right to sell the property personally without owing a commission, while under an exclusive right-to-sell the broker earns a commission no matter who sells it.
ClientvsCustomer
Clients are owed fiduciary duties such as loyalty, obedience, and confidentiality, while customers are owed only fair and honest dealing, not fiduciary duties.
Lease-purchasevsLease-option
A lease-purchase obligates the tenant to buy at a predetermined price by a set date with purchase terms (and often rent credits) set upfront, while a lease-option gives the tenant the right but not the obligation to purchase.
Modern Real Estate Practice (22nd ed.), Unit 17 – Lease purchase; Unit 17 – OptionsPurchase money mortgage (seller financing)vsLand contract
With a purchase money mortgage the buyer takes legal title immediately and gives the seller a security interest, while under a land contract the seller keeps legal title until all payments are made and the buyer holds only equitable title.
Modern Real Estate Practice (22nd ed.), Unit 11 – Owner financing contracts (purchase money mortgage vs. land contract)Taking title 'subject to' a mortgagevsAssuming a mortgage
A buyer taking title 'subject to' the loan is not personally liable for a foreclosure deficiency (the original seller/borrower may remain liable), while an assuming buyer becomes personally obligated on the debt.
Modern Real Estate Practice (22nd ed.), Unit 12 – Buying subject to or assuming a seller's mortgageEminent domainvsInverse condemnation
In eminent domain the government initiates the taking of private property for public use with just compensation, while inverse condemnation is an action the owner brings for compensation when a nearby public project diminishes the property's use and value without a direct taking.
Modern Real Estate Practice (22nd ed.), Land-Use Controls and Real Estate Investment, Chapter 20 - Inverse condemnationComminglingvsConversion
Commingling is mixing client money with personal or general business funds (such as depositing earnest money in the broker's operating account) and is always illegal, while conversion is the illegal use of entrusted money.
Real Estate Agency chapter, Accounting (fiduciary duty) sectionCondominiumvsCooperative
A condominium unit owner holds fee simple title to the unit (in severalty) plus an undivided interest in common elements as a tenant in common, while a cooperative corporation holds title and the buyer owns shares (personal property) with a proprietary lease for occupancy.
Modern Real Estate Practice (22nd ed.), Chapter 4 – Forms of Real Estate Ownership, Cooperative ownershipEscrow agent selected by the principal brokervsEscrow agent selected by the parties
Under Arkansas Regulation 10.8(c) the principal broker is responsible and accountable for trust funds delivered to an escrow agent the broker selected, but is NOT responsible for funds delivered to an escrow agent selected by the parties.
Ar Re Regulations, Regulation 10.8(c)Key Terms
Waiver of duties statement Ar Re License Law, § 17-42-319(a)(2)
A statement that must list the duties being waived in a manner allowing the parties to indicate each duty waived individually and must contain the 'Agreement to Waive' language in at least 10-point boldface type; even with a waiver, a buyer's/lessee's licensee remains authorized to present offers directly.
Audit trail (tenant ledger) Ar Re Regulations, Regulation 10.23(b)
Per Regulation 10.23(b), each tenant ledger must contain the tenant's name and the legal description or physical address sufficient to distinguish the property from other rental units, or a unique series of letters or numbers that establishes an audit trail.
Evidence of agency disclosure Ar Re Regulations, Section 8.1(b)
Per Regulation 8.1(b), a seller's or lessor's agent must make the agency disclosure in writing and maintain 'evidence' of that disclosure; disclosure must be timely so as to avoid eliciting confidential buyer information such as finances, negotiating strategy, or motivation, and a buyer's agent must disclose at first contact with the seller/lessor or their agent.
Duty to report violations Ar Re Regulations, Regulation 10.14
Per Regulation 10.14, each licensee must report in writing to the Commission any information that is or may be a violation of the Arkansas Real Estate License Law or Commission Regulations (e.g., mishandling of trust funds).
Real Estate Recovery Fund Ar Re License Law, § 17-42-406(a)(4)(A)
An Arkansas fund funded by a renewal fee not exceeding the lesser of $25.00 per annual renewal or an amount sufficient to restore the balance to $250,000; it pays no more than $25,000 for any one violation or continuing series of violations and no more than $75,000 total for the acts of any one licensee or group of related claims, and upon payment the licensee's license is immediately suspended until full reimbursement plus interest not to exceed 10% per annum.
Citation (alternate disciplinary procedure) Ar Re License Law, § 17-42-312(d)(3)
A penalty issued by the Executive Director that the licensee must, within 30 days of issuance, either accept by signing and returning with payment or contest by filing a verified written complaint; Regulation 9.9(b)(2) allows a $250 citation against the supervising broker of a licensee who practices on an expired license.
Broker's price opinion / market analysis Ar Re License Law, A.C.A. § 17-42-110(d)
A licensee's opinion of price that under A.C.A. § 17-42-110(d) must not contain the terms 'market value,' 'appraised value,' or 'appraisal,' and whose report must include the required disclaimer in at least 14-point bold type.
Trust account (Arkansas) Ar Re Regulations, Regulation 10.8(c)
An account in an institution insured by the FDIC or another federal insuring agency whose name includes 'trust' or 'escrow'; the broker may keep personal funds in it only up to six months of service charges, and trust funds must be deposited, delivered to an escrow agent, or handled per written agreement no later than 3 days after both seller and buyer execute the contract.
Executive broker (branch office) Ar Re Regulations, Regulation 7.4(a)
Per Regulation 7.4(a), a broker designated by the principal broker to be in charge of a branch office; no duplicate license is issued for a branch office with assigned licensees unless an executive broker has been designated.
Principal broker general responsibility Ar Re Regulations, Regulation 10.4(a)(3)
Per Regulation 10.4(a)(3), designating executive brokers does not absolve the principal broker of general responsibility for all real estate business conducted by the firm, including the activities of all executive brokers.
Single act rule Ar Re License Law, § 17-42-301(c)
Per § 17-42-301(c), the commission of even a single act of real estate brokerage by a person required to be licensed and not licensed constitutes a violation of the Arkansas Real Estate License Law.
Ministerial acts Modern Real Estate Practice (22nd ed.), Unit 9 — Nonagency section (ministerial acts)
The paperwork and formalities of transferring ownership that a nonagent/transaction broker performs for both buyer and seller without advocating or negotiating for either party.
Negative amortization Modern Real Estate Practice (22nd ed.), Unit 12 – Negative Amortization
When a payment cap or insufficient payment leaves part of the interest due unpaid, the shortfall is added to the loan balance so the balance increases rather than decreases.
Constructive notice Modern Real Estate Practice (22nd ed.), Chapter 7 (Title Records), Notice
Notice that everyone is legally presumed to have, given either by recording a document in the public records or by a non-record owner's physical possession of the property.
Mechanic's lien
A specific, involuntary lien filed by contractors, subcontractors, or suppliers for unpaid work or materials that attaches only to the property improved, not to other property of the debtor.
Section and township (government survey system)
A township is a 6-mile by 6-mile square containing 36 sections numbered 1–36 beginning in the northeast corner, and each section is one square mile containing exactly 640 acres (one acre = 43,560 square feet).
Formulas to Know
Seller's net proceeds
Commission = Sale price × commission rate; Net proceeds = Sale price − (commission + seller closing costs + mortgage payoff). Ex: $425,000 × 6% = $25,500; $425,000 − ($25,500 + $3,200 + $287,500) = $108,800.Commission split between brokers and agent
Total commission = Sale price × rate; each broker's share = total × split %; agent's share = that broker's share × agent's %. Ex: $475,000 × 5.5% = $26,125; × 50% = $13,062.50; × 70% = $9,143.75.Property tax proration (365-day year)
Daily rate = Annual taxes ÷ 365. Taxes paid in arrears: seller owes buyer (days from Jan 1 through seller's last day of responsibility) × daily rate — 259 days if the seller is responsible for the closing day of Sept 16 ($3,885), 258 days if responsible only through Sept 15 ($3,870). Taxes prepaid by seller: buyer owes seller (days from closing through Dec 31) × daily rate — Sept 16–Dec 31 = 107 days × $15 = $1,605.Rent and HOA proration (30-day month, prepaid to seller)
Daily amount = Monthly amount ÷ 30; buyer's days = closing day through day 30. Rent already collected by seller → credit buyer: 20 days × ($2,400 ÷ 30 = $80) = $1,600. HOA dues already paid by seller → credit seller: 20 days × ($360 ÷ 30 = $12) = $240.Loan amount, discount points, and origination fee
Loan = LTV % × lower of sale price or appraised value; Points and origination fee are always computed on the loan amount (1 point = 1% of the loan, reducing the rate roughly 0.25%). Ex: $305,000 × 80% = $244,000; 2 points = $4,880; 1% origination = $2,440; total $7,320.Total cash the buyer needs at closing
Down payment = Sale price − loan amount; Total cash = down payment + discount points + origination fee + other closing costs. Ex: $310,000 at 90% LTV → loan $279,000, down $31,000; points $5,580 + origination $2,790 + $3,200 = $11,570; total $42,570.Monthly PITI (plus PMI)
P&I = payment factor × (loan ÷ $1,000); add annual taxes ÷ 12, annual insurance ÷ 12, and annual PMI ÷ 12. Ex: $6.32 × 260 = $1,643.20 + $400 + $120 + $130 = $2,293.20.Gross Rent Multiplier
GRM = Sale price ÷ monthly gross rent. Ex: $288,000 ÷ $2,400 = 120.Capitalization rate and income capitalization value
Effective Gross Income = Gross rent × (1 − vacancy rate); NOI = EGI − operating expenses; Cap rate = NOI ÷ value; Value = NOI ÷ cap rate. Ex: $96,000 × 0.95 = $91,200 − $38,400 = $52,800 ÷ $720,000 = 7.33%; $96,000 ÷ 0.08 = $1,200,000 vs. $96,000 ÷ 0.10 = $960,000 (difference $240,000).Cost approach with straight-line depreciation
Annual depreciation = Replacement cost ÷ economic life; Total depreciation = annual × effective age; Value = (Replacement cost − total depreciation) + land value. Ex: $320,000 ÷ 50 = $6,400 × 15 = $96,000; ($320,000 − $96,000) + $95,000 = $319,000.