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Real Estate Exam Preparation, Exams of Advanced Education

A practice exam or study guide for real estate professionals. It covers a wide range of topics related to real estate transactions, including legal requirements, agency relationships, property types, financing, and landlord-tenant laws. The questions and answers provide a comprehensive overview of the knowledge and skills needed to succeed in the real estate industry. The document could be useful for real estate agents, brokers, or students preparing for real estate licensing exams. It covers a variety of scenarios and scenarios that real estate professionals may encounter in their daily work, making it a valuable resource for both new and experienced professionals.

Typology: Exams

2024/2025

Available from 10/07/2024

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ASREB Practice Exam Questions

A 3.45-acre lot sells for 50 cents per square foot. What was the selling price? a. $37, b. $75, c. $76, d. $78,712 - b. $75, A blind ad refers to an ad that a. provides no price b. provides no address c. gives no indication that the property is listed with a broker d. gives no indication that the property has been sold or not - c. gives no indication that the property is listed with a broker A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered a. equity b. boot c. tax shelter d. leverage - a. equity A broker, acting as a property manager, would be what type of agent? a. special b. general c. implied d. ostensible - b. general

A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise? a. alienation b. habendum c. novation d. acceleration - d. acceleration When a new home is still under construction, the County Assessor may a. increase the assessed value ratio b. increase the full cash value c. decrease the tax rate d. appeal the limited property value - b. increase the full cash value A contract has been signed, but title has not yet passed. The contract is a. executed b. executory c. recorded d. estopped - b. executory A handicapped person is leasing a house that requires a modification. Which of the following is TRUE about the modifications? a. the lessor may forbid handicapped modifications b. the lessor can require the lessee to reasonably restore the property at the end of the lease c. the lessor must pay for the modifications d. the lessor can increase the rent due to the risk of the handicapped person - b. the lessor can require the lessee to reasonably restore the property at the end of the lease A holdover tenant would have a(n) a. estate at sufferance b. estate at will

c. freehold estate d. remainder estate - a. estate at sufferance Which of these property qualifications is used for vacant land? a. Class 1 b. Class 2 c. Class 3 d. Class 4 - b. Class 2 A house costs $100,000. The buyer is making a down payment of $32,000 and getting a $68,000 loan. If there are 4 points, how much money will be paid out of the closing for the points? a. $ b. $1, c. $2, d. $4,000 - c. $2, A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called a. steering b. blockbusting c. redlining d. territory allocation - c. redlining A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is removed. The bookcase would be considered: a. real property b. trade fixture c. appurtenant d. chattel real - b. trade fixture

To finance the infrastructure for a subdivision development, Arizona law allows the formation of a. Homeowner's Associations b. Community Facilities Districts c. Planned Communities d.Planned Unit Developments - b. Community Facilities Districts A listing broker receives several offers at the same time. The broker should a. present only the best b. present all offers c. present the three best d. wait for more offers before presenting to the seller - b. present all offers A Loan Estimate must be given to a borrower within three business days a. of loan application b. after the buyer's request c. after closing d. prior to closing - a. of loan application A party lives on a property without permission of the owner. After the legally required time period, if the occupant receives title to the property is was done so through a. easement by prescription b. adverse possession c. escheat d. eminent domain - b. adverse possession In what situation would a short sale be likely? a. the loan balance is greater than the property value b. the loan balance is less than the property value c. The loan has a non-recourse provision

d. the total of all liens is less than the property value - a. the loan balance is greater than the property value A real estate mortgage would be a(n) a. involuntary lien b. general lien c. voluntary lien d. statutory lien - c. voluntary lien A real estate sale was closed on March 21. The assessed value of the property was $72,500 and the tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller's settlement statement if the buyer owns day of closing and we are using a calendar year? - c. $274.60 debit A right of way over Parcel A to Parcel B identifies Parcel B as the a. servient tenement b. dominant tenement c. appurtenant estate d. encroachment estate - b dominant tenement A company that acts as an intermediary between a lender and an appraiser is a(n) a. full service appraisal company b. real estate brokerage company c. appraisal management company d. appraisal evaluation company - c. appraisal management company a seller lists a property with a brokerage, sells it himself, and does not have to pay commission. what kind of listing did the seller sign? a. exclusive right to sell b. exclusive agency c. net listing

d. gross listing - b. exclusive agency A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current mortgage, and wants $58,000 in cash for a down payment on another house. His listing agreement obligates him to pay 7% commission to the brokerage. What is the minimum selling price he can accept? (Round your answer up to the nearest dollar) a. $ 197, b. $218, c. $222, d. 225,807 - d. $225, A seller wants to list a four plex and live in one unit, but doesn't want any children in the units. What should the agent do? a. List the property and indicate no children b. Refuse the listing; it violates fair housing c. Charge the families with children higher deposit d. Refuse the application if they have children - b. refuse the listing; it violates fair housing A valid contract must have a. offer and acceptance b. street address c. earnest money d. escrow instructions - a. offer and acceptance If the percentage of renters in a community exceeds 50%, many lenders require that the homeowners' association reserves be what percentage of HOA budgeted income? a. 5% b. 10% c. 15% d. 20% - d. 20%

After a Deed of Trust Foreclosure sale, which of the following is TRUE? a. a deed of reconveyance is given to the trustor b. The note is marked and returned to the trustor c. a trustee's deed is given to the new owner d. the trust deed is returned to the trustor - c. a trustee's deed is given to the new owner After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n) a. deficiency judgment b. assessment c. assignment of rents d. deed in lieu of foreclosure - a. deficiency judgement All of the following would be considered appurtenant in a real estate transaction EXCEPT a. mineral rights b. property improvements c. annual crops d. the bundle of rights - c. annual crops A property in which unrelated people who need care, support or supervision live together and which is protected by fair housing laws from discrimination by neighbors is a a. homestead b. relined home c. single-family home d. group home - d. group home An option once exercised is considered a. unilateral executed

b. bilateral executed c. unilateral executory d. bilateral executory - unilateral executed As of June 30th of any year, the real estate recovery fund must maintain a balance of to avoid additional fees to licensees a. $200, b. $250, c. $300, d. $600,000 - d. $600, At which point does recordation take place? a. when the docket and page number are assigned b. at close of escrow date c. the date the document was signed d. the date the document was notarized - a. when the docket and page number are assigned B expects a return of 8% on his investments and is considering a property with an asking price of $670,000. The records show a potential income of $6,200 a month, expenses of $1,500 a month, and a vacancy factor of 10%. With this information in mind, what would be the estimate of value? a. $137, b. $343, c. $612, d. $818,250 - c. $612, Before a tenant can exercise the self-help for minor defect provision, the tenant must give the owner how many days to cure the defect? a. 3 days b. 5 days c. 7 days

d. 10 days - d. 10 days What is required at the time of Affidavit of Affixture is recorded? a. The mobile home must have skirts installed b. The County Assessor must inspect the property c. The titles to the mobile home must be surrendered d. The mobile home must be owner-occupied - c. the titles to the mobile home must be surrendered A broker has what duty to a third party? a. fiduciary b. full disclosure of all material facts c. client relationship d. loyalty - b. full disclosure of material facts A federal rent subsidy program is known as a. Pathway to Purchase b. Section 8 c. Landlord Tenant Act d. Protecting Tenants in Foreclosure Act - b. Section 8 How can a buyer best be assured of getting his earnest money back if his loan is not approved? a. request the earnest money from the lender b. request the earnest money from the seller c. place a stop payment on the check d. place a contingency clause in the contract - d. place a contingency clause in the contract In a sublease with a positive leasehold, who normally benefits from the excess rent? a. sublessee b. lessor

c. broker d. sublessor - d. sublessor A legal description reads as follows: "The NW 1/4 of Section 2 and the W 1/2 of the SW 1/4 of Section 35." How many acres is this? a. 20 acres b. 160 acres c. 240 acres d. 320 acres - c. 240 acres If a tenant abandons a residential apartment, the landlord must do all of the following EXCEPT a. sell the tenant's personal property after holding it for 10 days b. hold any personal property of the tenant for at least 14 days before disposing of it c. post a notice of abandonment on the apartment door and wait 5 days before entering d. send a notice of abandonment to the tenant through certified mail - a. sell the tenant's personal property after holding it for 10 days How many days does the landlord have to give the tenant a full accounting of the security deposit upon termination of tenancy? a. 3 days b. 10 days c. 14 days d. 21 days - c. 14 days How many townships are in a 24 mile square? a. 8 b. 12 c. 16 d. 24 - c. 16

How much of a down payment is required for a VA guaranteed loan? a. 0% b. 3.5% c. 5% d. 10% - a. 0% Past due taxes would appear on a title report as a(n) a. encumbrance b. encroachment c. lis pendens d. adverse possession - a. encumbrance If a buyer buys a parcel of land in which the public report was required but was not issued, the buyer may void the sale within a. 1 year a. 2 years c. 3 years d. 5 years - c. 3 years If there are material changes from an original Public Report, the Commissioner may require the subdivider to create a(n) a. subsequent owner exemption b. amended Public Report c. original subdivision disclosure report d. affidavit of disclosure - b. amended Public Record If can rates in an area are going up, how does this influence value? a. value remains the same b. value goes up

c. value goes down d. value goes up by multiple of the cap rate - c. value goes down The state obtains the property of someone who dies intestate through a. police power b. escheat c. eminent domain d. taxation - b. escheat If there is a contract dispute, which of the following would take precedence? a. printed word b. items crossed out c. handwritten words d. boilerplate - c. handwritten words In an agency relationship, the primary ethical duty of a broker is to a. disclose all items to al parties b. represent all parties c. represent neither buyer nor seller d. represent the principal - d. represent the principal When conveying property in Arizona, a deed must be signed by the a. grantee b. mortgagor c. grantor d. trustor - c. grantor In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered

a. community property b. sole and separate c. tenancy in common d. joint tenancy - a. community property The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from a. the Arizona Statute of Frauds b. the Commissioner's Rules c. the Arizona Constitution d. local ordinance - c.the Arizona Constitution What clarifies ADRE's position on statutes or rules? a. Case Law b. Arizona Administrative Code c. Arizona Revised Statutes d. Substantive Policy Statements - d. Substantive Policy Statements The concept that information given to a client's agent has been given to the client is known as a. vicarious liability b. fiduciary duty c. imputed notice d. caveat emptor - c. imputed notice Mrs. Martin owns a house on a corner lot, and tears the house down in order to get a better price for the land. This is an example of a. substitution b. economic depreciation c. highest and best use d. contribution - c. highest and best use

On a settlement statement, rent paid in advance would be a a. credit t the seller only b. debit to the buyer only c. credit to the buyer, debit to the seller d. credit to the buyer only - c. credit to the buyer, debit to the seller Property taxes are assessed on the a. capital gains on the property b. value of the property c. amount pain for the property d. assessment on the property - b. value of the property Rows of townships are called a. tiers b. ranges c. townhouses d. condominiums - a. tiers The 1988 Amendment to the Federal Fair Housing Act prohibits discrimination based on a. age and sex b. handicapped and religion c. familial status and handicapped d. familial status and age - c. familial status and handicapped If a buyer of a property wants to remain anonymous, what term should be used for that buyer's name in the purchase contract? a. Or Nominee b. Or Nominor

c. Or Principal d. Or Assignor - a. Or Nominee The doctrine of water usage in Arizona is known as a. riparian b. prior appropriation c. reliction d.littoral - b. prior appropriation Which of the following listings would NOT be entered into a multiple listing service? a. pocket listing b. entry only listing c. limited service listing d. full service listing - a. pocket listing The following would be an example of what type of surveying system? Beginning at the SE corner of Tatum andCactus, proceed 2,640 feet north, thence 400' west, thence 700 feet south, and back to the beginning a. rectangular survey b. block and lot c. metes and bounds d. recorded plat - c. metes and bounds Which is the highest form of an estate? a. fee simple b. defeasible fee c. fee conditional d. estate in remainder - a. fee simple

What is the homestead exemption in Arizona? a. $20, b. $50, c. $100, d. $150,000 - d. $150, The main purpose of the Federal Housing Administration is to a. guarantee loans b. insure loans c. lend money d. sell loans - b. insure loans The relationship between a broker and their salesperson is what type of agency? a. general b. special c. ostensible d. fiduciary - a. general Which of the following is determined by measuring the exterior dimensions of a home including garages, patios and entryways? a. square footage of living area b. square footage under roof c. front footage area d. heated and cooled areas - b. square footage under roof What is the tax assessment rate applied to owner-occupied residential property in Arizona? a. 10% b. 12% c. 15%

d. 18% - a. 10% When a property that has a well is sold, what must be sent to ADWR? a. Affidavit of Affixture b. Well Inspection Report c. Transfer of Well Rights Form d. Affidavit of Disclosure - c. Transfer of Well Rights Form The word friable would most likely apply to which of the following? a. radon gas b. lead-based paint c. a Superfund site d. asbestos - d. asbestos two property managers are planning to set rental rates on their units to keep the rents high in the area. which of the laws would have been violated? a. fair housing laws b. RESPA c. antitrust laws d. laws against steering - c. antitrust laws Under what condition would a listing agreement NOT terminate? a. the principal dies b. the broker dies c. the salesperson dies d. the bankruptcy of the seller - c. salesperson dies What document is recorded with the deed? a. affidavit of value

b. purchase contract c. promissory note d. settlement statement - a. affidavit of value What organization receives most of the benefit of proceeds from the sale or lease of state trust land? a. county governments b. state schools c. Arizona House of Representatives d. Arizona Senate - b. state schools Which is considered functional obsolescence? a. worn out carpet b. lack of parking c. a building located next to a factory d. a five-bedroom house with one bathroom - d. a five-bedroom house with one bathroom What is the maximum security deposit allowed under the Arizona Landlord Tenant Act? a. one month's rent b. 1 1/2 month's rent c. 1 1/2 month's rent plus last month's rent d. first and last month's rent - b. 1 1/2 month's rent What is the name of the third party that will receive a life interest in a property, upon the death of a measuring tenant? a. fee simple tenant b. life tenant c. reversion d. remainderman - d. remainderman

What is the purpose of an affidavit of value? a. assist the County Assessor in determining property values b. comply with IRS requirements c. assist in determining capital gains tax d. assist the State Treasurer in sales tax revenue - a. assist the County Assessor in determining property values An escrow company may disburse commissions directly to a broker's salesperson if the a. salesperson's license is inactive b. escrow officer receives written authorization from the broker in each transaction c. escrow agent is also a licensed broker d.broker gives written authorization to the escrow company annually - b. escrow officer receives written authorization from the broker in each transaction Real estate licensees should safeguard a client's or customer's personal information order to prevent a. identity theft b. misrepresentation c. double escrows d. wire fraud - a. identity theft If an owner improves a property, a licensed contractor is required to be used in all of these situations EXCEPT if the property a. will be sold within one year b. will be leased within one year c. is owned-occupied for more than one year d. is sold within six months - c. is owner-occupied for more than one year When a developer combines two or more adjacent parcels of land into one large development, it is known as a. assemblage

b. conformity c. partition d. subdivision - a. assemblage When a person buys a condo, how do they hold title to the common areas? a. sole and separate b. joint tenancy c. tenancy in common d. community property - c. tenancy in common A person named in an insurance policy who will receive the insurance proceeds if the property is damaged is the a. loss payor b. loss payee c. additional party insured d. homeowner - b. loss payee When a property located within a homeowners association is listed for sale, who is responsible for supplying the relevant documents to prospective buyer? a. the selling broker b. the listing broker c. the seller, if there are more than 50 units in the HOA d. the HOA, if there are more than 50 units - d. the HOA, if there are more than 50 units At escrow, which of the following forms must be filed with the IRS? a. 1099 INT b. K- c. 1099 S d. W-2 - c. 1099 S

Under what circumstance can an owner of a single-family residence depreciate the property for tax purposes a. when the property is sold b. if it is owner-occupied c. if the property is a rental d. if it is held for at least 27.5 years - c. if the property is a rental When land is purchased interstate, how long would a buyer have to rescind under the Federal Interstate Land Full Disclosure Act? a. 3 days after signing the contract b. until the property is inspected by the buyer c. within 7 days of receiving a property report d. within 6 months of bought sight unseen - c. within 7 days of receiving a property report When the Real Estate Commissioner receives a written complaint against a licensee, a. the Commissioner will automatically suspend the license b. the Commissioner will revoke the license c. the Commissioner will turn the matter over to the courts d. a hearing will be held before any license suspension - d. a hearing will be held before any license suspension A lender of a conventional loan would require private mortgage insurance (PMI) when the loan-to-value is a. less than 80% b. less than 75% c. more than 80% d. more than 75% - c. more than 80% Which of the following is NOT a participant in the secondary mortgage market?

a. FNMA b. FHA c. FHLMC d. GNMA - b. FHA Water rights for what Arizona rivers are being adjudicated in court? a. Gila and Salt Rivers b. Gila and Little Colorado Rivers C. Gila and Santa Cruz Rivers d. Gila and Colorado Rivers - b. Gila and Little Colorado Rivers Which of the following would be considered a grandfathered water right? a. exempt domestic well b. Type II water right c. flood area d. riparian district - b. Type II water right A septic tank inspection report is valid for a. 6 months b. 1 month c. 3 months d. 12 months - a. 6 months If a property lies within the boundaries of the areas in which water rights are being adjudicated, the owners a. must file a claim to be included in the court's decision b. are not affected by the court action c. must wait until the court decision is made before asserting a claim

d. are automatically included in the court action - a. must file a claim to be included in the court's decision