ASREB LATEST 2026 TEST PAPER QUESTIONS AND
ANSWERS RATED A+
✔✔when property has a cap rate, cash additional $800 of operating expense has what
effect on property value - ✔✔value decreases by $80
✔✔you borrow $90,000 at 9% interest for 20 years. monthly payment is $900, principal
and interest, what is total amount of interest paid after 20 years - ✔✔1) 240(# of mo.) x
900 = 216,000 (total payments over 20 years) 2) 216,0000 - 90,000 = 126,000 (total
interest paid over 20 years)
✔✔market rent (economic rent) - ✔✔the rent a property can command in the open
market
✔✔Contract Rent - ✔✔The amount of rent stated in a lease agreement.
✔✔if contract rent exceeds economic rent it is known as - ✔✔excess rent and lessor
has advantage. with lesee at disadvantage and can be considered NEGATIVE
LEASEHOLD
✔✔When economic rent exceeds contract rent the difference is called - ✔✔deficit rent,
lessee has advantage and lessor has disadvantage. Known as POSITIVE LEASEHOLD
✔✔a typical property management agreement does NOT include - ✔✔an annual budget
✔✔Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot? - ✔✔1) 180,.18% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
✔✔A house rents for $980 a month. The property is sold and closes escrow on April
15th. What is the proration of the rent at closing? - ✔✔$522.67 Credit the Buyer
✔✔The taxes for the year are $1824. The Close of escrow is April 15th. What is the
proration at close of escrow? - ✔✔`$526.93 Debit the Seller
✔✔A lot is originally purchased for $10,500. It is sold at a 20% loss and then re-sold
with a 10% commission. What was the net loss on the property? - ✔✔$2,940
✔✔You purchase acreage at a total price of $125,500. The land is priced at $18,000 per
acre. What percent of a section did you purchase? - ✔✔A section is 640 acres.
1) 125,,000 = 6.97 acres owned
2) 6. = .010 (1% after you move decimal 2 places right)
,✔✔A property is listed at $150,000 and sold for 10% less than the listed price. The
property is subsequently re-sold for 20% more than the original listing. What was the
percentage of profit? - ✔✔33.3 %
✔✔Property Closes on June 15th. Using a 365 calendar what is the credit to the seller
for the prepaid taxes in the amount of $1200 per year? - ✔✔1) June 15 - 30 = 16 days
2) July 31, Aug. 31, Sept 30, Oct. 31, Nov. 30, Dec. 31 = 184 Days
3) 184 + 16 = 200 days
4) 1200/365 = $3.28 taxes per day
5) 3.28 x 200 days = $657.54 Credit to seller/Debit to buyer
✔✔Taxpaper relief act of 1997 can be invoked - ✔✔once every two years and must be
principle residence for 2 of last 5 years
✔✔lot and block is primarily used for - ✔✔subdivided land and is the smallest unit of
measurement.
✔✔metes and bounds is - ✔✔the oldest system, uses a benchmark and refers to
monuments and markers
✔✔rectangular survey system is a legal description for land referencing intersecting -
✔✔principle, meridians, and baselines
✔✔In Arizona, initial point for all land surveys in the state is an intersection referred to
as - ✔✔Gila and Salt River Baseline and Meridian (G&SRB&M)
✔✔townships use - ✔✔Range lines ( east and west ) and township lines (north and
south) that are six miles apart
✔✔Fractional sections contain how many standard and non - standard sections - ✔✔25
standard sections and 11 non - standard sections
✔✔Government checks contain how many townships - ✔✔16
✔✔the right of the landlord to seize a tenant's belongings for payments in arrears -
✔✔distraint
✔✔When a claim is paid by the real estate recovery fund, the status of the licensee's -
✔✔terminated
✔✔What action would terminate a purchase contract? - ✔✔eminent domain
, ✔✔In with of the following situations would the lender have completed a foreclosure? -
✔✔an REO transaction
✔✔the tenants right to harvest crops after lease expires is called: - ✔✔emblements (
annual crops that are legally owned by tenant )
✔✔when a buyer interest in a purchase contract is assigned to a third party, sellers
permission: - ✔✔in never required
✔✔who is not involved in an appeal of a property full cash value - ✔✔county treasurer
✔✔which of the following would not be part of an agreement for sale? - ✔✔trustee
notice
✔✔What is a lender required to give a borrower under RESPA? - ✔✔loan estimate and
closing - disclosure
✔✔When the buyer and seller agree to terminate the contract this is called: -
✔✔recission
✔✔the purchaser fails to perform under a purchase contract. who has the right, due to
his failure, to declare that the earnest money is forfeited? - ✔✔seller
✔✔A seller accepts a buyer's offer while the seller is out of town. What should the
broker do with the earnest deposit? - ✔✔The broker should promptly deposit it into an
escrow account
✔✔which of the following would be considered real property - ✔✔fixture
✔✔the discount points are 3% which represents $2700, the buyer down payment is
20%. what is purchase price - ✔✔1) % = 90,000
2) 90,% = 112500
✔✔A graduated lease would mean that: - ✔✔Rents increase as tenants are procured
✔✔who is covered by ALTA? - ✔✔beneficiary
✔✔When a deed is delivered but destroyed before recordation, who is the legal title
holder? - ✔✔grantee
✔✔When a person dies with a will, which of the following statements would be false?
A)An executor would oversee the probate process
B) Heir may contest the will
ANSWERS RATED A+
✔✔when property has a cap rate, cash additional $800 of operating expense has what
effect on property value - ✔✔value decreases by $80
✔✔you borrow $90,000 at 9% interest for 20 years. monthly payment is $900, principal
and interest, what is total amount of interest paid after 20 years - ✔✔1) 240(# of mo.) x
900 = 216,000 (total payments over 20 years) 2) 216,0000 - 90,000 = 126,000 (total
interest paid over 20 years)
✔✔market rent (economic rent) - ✔✔the rent a property can command in the open
market
✔✔Contract Rent - ✔✔The amount of rent stated in a lease agreement.
✔✔if contract rent exceeds economic rent it is known as - ✔✔excess rent and lessor
has advantage. with lesee at disadvantage and can be considered NEGATIVE
LEASEHOLD
✔✔When economic rent exceeds contract rent the difference is called - ✔✔deficit rent,
lessee has advantage and lessor has disadvantage. Known as POSITIVE LEASEHOLD
✔✔a typical property management agreement does NOT include - ✔✔an annual budget
✔✔Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot? - ✔✔1) 180,.18% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
✔✔A house rents for $980 a month. The property is sold and closes escrow on April
15th. What is the proration of the rent at closing? - ✔✔$522.67 Credit the Buyer
✔✔The taxes for the year are $1824. The Close of escrow is April 15th. What is the
proration at close of escrow? - ✔✔`$526.93 Debit the Seller
✔✔A lot is originally purchased for $10,500. It is sold at a 20% loss and then re-sold
with a 10% commission. What was the net loss on the property? - ✔✔$2,940
✔✔You purchase acreage at a total price of $125,500. The land is priced at $18,000 per
acre. What percent of a section did you purchase? - ✔✔A section is 640 acres.
1) 125,,000 = 6.97 acres owned
2) 6. = .010 (1% after you move decimal 2 places right)
,✔✔A property is listed at $150,000 and sold for 10% less than the listed price. The
property is subsequently re-sold for 20% more than the original listing. What was the
percentage of profit? - ✔✔33.3 %
✔✔Property Closes on June 15th. Using a 365 calendar what is the credit to the seller
for the prepaid taxes in the amount of $1200 per year? - ✔✔1) June 15 - 30 = 16 days
2) July 31, Aug. 31, Sept 30, Oct. 31, Nov. 30, Dec. 31 = 184 Days
3) 184 + 16 = 200 days
4) 1200/365 = $3.28 taxes per day
5) 3.28 x 200 days = $657.54 Credit to seller/Debit to buyer
✔✔Taxpaper relief act of 1997 can be invoked - ✔✔once every two years and must be
principle residence for 2 of last 5 years
✔✔lot and block is primarily used for - ✔✔subdivided land and is the smallest unit of
measurement.
✔✔metes and bounds is - ✔✔the oldest system, uses a benchmark and refers to
monuments and markers
✔✔rectangular survey system is a legal description for land referencing intersecting -
✔✔principle, meridians, and baselines
✔✔In Arizona, initial point for all land surveys in the state is an intersection referred to
as - ✔✔Gila and Salt River Baseline and Meridian (G&SRB&M)
✔✔townships use - ✔✔Range lines ( east and west ) and township lines (north and
south) that are six miles apart
✔✔Fractional sections contain how many standard and non - standard sections - ✔✔25
standard sections and 11 non - standard sections
✔✔Government checks contain how many townships - ✔✔16
✔✔the right of the landlord to seize a tenant's belongings for payments in arrears -
✔✔distraint
✔✔When a claim is paid by the real estate recovery fund, the status of the licensee's -
✔✔terminated
✔✔What action would terminate a purchase contract? - ✔✔eminent domain
, ✔✔In with of the following situations would the lender have completed a foreclosure? -
✔✔an REO transaction
✔✔the tenants right to harvest crops after lease expires is called: - ✔✔emblements (
annual crops that are legally owned by tenant )
✔✔when a buyer interest in a purchase contract is assigned to a third party, sellers
permission: - ✔✔in never required
✔✔who is not involved in an appeal of a property full cash value - ✔✔county treasurer
✔✔which of the following would not be part of an agreement for sale? - ✔✔trustee
notice
✔✔What is a lender required to give a borrower under RESPA? - ✔✔loan estimate and
closing - disclosure
✔✔When the buyer and seller agree to terminate the contract this is called: -
✔✔recission
✔✔the purchaser fails to perform under a purchase contract. who has the right, due to
his failure, to declare that the earnest money is forfeited? - ✔✔seller
✔✔A seller accepts a buyer's offer while the seller is out of town. What should the
broker do with the earnest deposit? - ✔✔The broker should promptly deposit it into an
escrow account
✔✔which of the following would be considered real property - ✔✔fixture
✔✔the discount points are 3% which represents $2700, the buyer down payment is
20%. what is purchase price - ✔✔1) % = 90,000
2) 90,% = 112500
✔✔A graduated lease would mean that: - ✔✔Rents increase as tenants are procured
✔✔who is covered by ALTA? - ✔✔beneficiary
✔✔When a deed is delivered but destroyed before recordation, who is the legal title
holder? - ✔✔grantee
✔✔When a person dies with a will, which of the following statements would be false?
A)An executor would oversee the probate process
B) Heir may contest the will
