Arkansas Real Estate Exam Questions With 100% correct Answers (Verified )2024

Arkansas Real Estate Exam Questions With 100% correct Answers (Verified )2024 (SPECIFIC PERFORMANCE) - Answer-BECAUSE NO TWO PROPERTIES ARE THE SAME, A BUYER CAN SUE A SELLER OR A SELLER CAN SUE A BUYER FOR ___ IF ONE OF THEM REFUSES TO CLOSE. (M.G.I.C.) MORTGAGE GUARANTEE INSURANCE CORPORATION - Answer-Largest private insurer is 3 days following the execution of a real estate contract - Answer-Trust funds received by the principal broker or designated escrow agent must be deposited into the trust account no later than__. (or deposited according to written instructions of principal parties) 3 years - Answer-Reconciliations records must be made available for inspection by the Commission and kept for 5 days - Answer-following execution of the sales contract, the developer may cancel the contract without penalty Within 5 days - Answer-statement of rescission rights declaring that purchaser has ___ after contract execution to cancel the contract.There is no penalty for cancellation. 7 days - Answer-Inactive licensees must notify the Commission of any change in name or address within 7 days following the termination - Answer-principal broker must within _____ notify the Commission of the termination, and surrender the license and card to the Commission. This automatically de-activates the license 8 points - Answer-How many discount points are required to increase the percentage yield 1%? 10 days in advance of the hearing date. - Answer-the accused licensee may elicit the assistance of the Commission in procuring relevant documents or witnesses the licensee wishes to be present. The filer must demonstrate he or she has distributed copies of the motion to affected parties or their legal representatives,and All motions must be filed within: 10 Principals of Real Estate Value - Answer-Highest and Best Use, substitution, law of supply and demand,Regression and Progression,anticipation, conformity, Assemblage, competition, contribution, change 20% down payment - Answer-Insurance is required for all loans with less than 30 days prior to the date of the hearing - Answer-The director is required to issue notice of an upcoming hearing to all affected parties:. 36 Sections; 640 acres - Answer-Each township square is divided into ___ one mile square. One section is also equal to__ 50 times factor of 8.78 = $439 per month for 30 years. - Answer-A buyer got a 30 year loan of $50,000 with an interest rate of 10%, a factor of 8.78. What will the buyer's monthly P & I, be? 90 days following exam date - Answer-Upon successful completion of the examination, the applicant must submit the proper forms and fees to the Commission no later than 90 prior to expiration - Answer-the Commission will issue a renewed license upon receipt of the application no later than A broker may properly disburse funds from an escrow or trust account upon: (7) - Answer-1.Interpretation of the contract which authorizes him to hold funds. 2.Securing a written agreement signed by all parties having an interest in funds, and is separate from the contract which authorizes him to hold funds. 3. At the closing of the transaction. 4. Rejection of offer to purchase, sell, rent, lease, exchange, or option 5. Withdrawal of offer not yet accepted to purchase, sell, rent, lease, exchange or option 6. Filing an interpleader action in a court of jurisdiction. Broker must follow the orders of the court in dealing w/ the disputed trust funds. 7. By the order of a court . A Factor - Answer-the cost per thousand that is required to create the principal and interest payment necessary to pay off the loan A Freehold Estates - Answer-"I own the property," it is what we think of as "Ownership."no definite ending date. The estate lasts at least a lifetime, because the property can be willed to a person's heirs, and can be enjoyed without the interference of others. A loan underwriter - Answer-evaluates a loan application to determine the desirability of the loan; a person working for a lender who reviews a loan application and makes recommendations to the loan committee. A man owns a building with 6 apartments. Three of the 6 apartments net him $200 per month and the other three net him $150 each month. For what amount should he sell the building to net 9%? - Answer-Income divided by Cap Rate = Value Total net income = ($200 X 3 = $600 a month X 12 =$7,200) plus ($150 X 3 = $450 a month X 12 =5,400). $7,200 + $5,400 = $12,600 total annual income. Next, divide the net income by the 9% cap rate: $12,600 / 9% = $140,000. Thus, in order to sell this property with a 9% return, the investor must sell it for $140,000.