Common Mistakes Candidates Make on the Arkansas Real Estate Exam

Mistake #1: Underestimating the State-Specific Section

The Arkansas real estate exam is divided into two parts: the National portion (80 questions) and the State portion (30 questions). A fatal error many candidates make is dedicating 90% of their study time to national concepts—like general property ownership and financing—while skimming the Arkansas-specific laws.

Ignoring the Arkansas Time-Share Act

Arkansas has a robust tourism industry, particularly in areas like Hot Springs and the Ozarks. Consequently, the AREC places a heavy emphasis on time-share regulations. Candidates frequently miss questions regarding the public offering statement, the buyer's right of rescission (purchasers have five days to cancel a time-share contract without penalty in Arkansas), and the specific licensing requirements for time-share salespeople.

Failing to Master Agency Disclosure Timelines

Arkansas law is incredibly strict about when and how agency relationships must be disclosed. Candidates often mistakenly apply general national rules to state-specific scenarios. In Arkansas, you must disclose your agency relationship to a prospective buyer or seller in a timely manner—specifically, before eliciting or receiving confidential information. Failing to understand the nuances of who represents whom can cost you crucial points. To deepen your understanding of these roles, review our guide on Arkansas Broker vs. Agent Responsibilities.

Mistake #2: Miscalculating the Arkansas Real Property Transfer Tax

Real estate math is a common stumbling block, but the Arkansas Real Property Transfer Tax is a specific calculation that appears frequently on the state exam. Candidates often memorize the national proration formulas but forget the specific tax rate required by the state of Arkansas.

The Formula: In Arkansas, the real property transfer tax is $3.30 per $1,000 of the actual consideration (sale price). Unless otherwise negotiated in the contract, this tax is split evenly between the buyer and the seller ($1.65 per $1,000 each).

Practical Exam Scenario:
A home in Little Rock sells for $250,000. What is the total real property transfer tax, and how much is the seller customarily responsible for paying?

• Step 1: Divide the sale price by 1,000. ($250,000 / 1,000 = 250)
• Step 2: Multiply by the total tax rate. (250 × $3.30 = $825 total tax)
• Step 3: Divide by 2 to find the seller's portion. ($825 / 2 = $412.50)

Candidates who fail to remember the exact $3.30 figure or forget to divide it between the parties will easily fall for the exam's distractor answers.

Mistake #3: Confusing Earnest Money and Trust Account Rules

The Arkansas Real Estate Commission takes the handling of client funds incredibly seriously. Commingling (mixing client funds with personal or business operating funds) and conversion (using client funds for unauthorized purposes) are strictly prohibited and heavily tested.

A common exam mistake is misunderstanding the timeline for depositing earnest money. Under AREC regulations, trust funds must be deposited into a trust account no later than three days following the execution of a real estate contract, unless the contract explicitly states otherwise in writing. Additionally, candidates often forget that trust accounts in Arkansas must be non-interest-bearing unless the principal broker and all parties agree in writing to an interest-bearing account. For a deeper dive into this topic, check out our article on Arkansas Earnest Money and Escrow.

Mistake #4: Poor Time Management and "Overthinking"

You are given 4 hours total to complete the exam (150 minutes for the National portion and 90 minutes for the State portion). A classic mistake is getting bogged down on a single, complex math question early in the test.

The "Mark for Review" Strategy

Pearson VUE's testing software allows you to mark questions and return to them later. Candidates who do not utilize this feature often run out of time. If a question involves a multi-step proration or a convoluted legal scenario that you cannot solve within 60 seconds, mark it, guess your best answer (in case you run out of time), and move on. Answer all the questions you know immediately to build confidence and secure points.

Mistake #5: Misunderstanding Post-Exam Requirements

While not a mistake made during the test, many candidates fail to understand what happens immediately after passing. Passing the exam does not automatically make you an active real estate agent in Arkansas. You have a limited window (typically 90 days) to submit your passing score, your background check results, and your application to the AREC, along with the signature of your sponsoring Principal Broker.

Furthermore, new agents often forget that their education doesn't stop once they pass. Arkansas requires newly licensed salespersons to complete an 18-hour post-license education course within six months of the date their license was issued. Ensure you are prepared for the road ahead by reviewing the Arkansas Continuing Education Requirements.

Frequently Asked Questions (FAQs)

How many questions are on the Arkansas real estate exam?

The Arkansas real estate salesperson exam consists of 110 scored questions in total. This is broken down into 80 questions on the National portion and 30 questions on the State-specific portion. You may also see 5-10 "pre-test" questions that do not count toward your score.

What is the passing score for the Arkansas real estate exam?

To pass, you must achieve a scaled score of at least 70 on both the National and State portions. Because the test uses scaled scoring, this does not always equate to an exact percentage of questions answered correctly, but aiming for 75% or higher during practice exams is highly recommended.

Do I need to memorize all the AREC disciplinary actions for the exam?

While you don't need to memorize every single past disciplinary case, you absolutely must know the maximum penalties the Arkansas Real Estate Commission can levy. For instance, knowing that the AREC can fine a licensee up to $1,000 per violation is a very common exam topic.

Can I bring a calculator to the Pearson VUE testing center?

You cannot bring your own personal calculator into the testing room. However, the Pearson VUE testing center will provide you with a basic, non-programmable calculator or allow you to use the calculator built into the testing software.

If I fail one part of the exam, do I have to retake both?

No. In Arkansas, if you pass one portion (e.g., the National section) but fail the other (e.g., the State section), you only need to retake the portion you failed, provided you do so within six months of your initial exam date. You will, however, have to pay the exam fee again.