ASREB COMPREHENSIVE EXAM UPDATED QUESTIONS AND
ANSWERS RATED A+
✔✔The main purpose of the Federal Housing Administration is to... - ✔✔insure loans
✔✔The relationship between a broker and their salesperson is what type of agency? -
✔✔General
✔✔Which of the following is determined by measuring the exterior dimensions of a
home including garages, patios and entryways? - ✔✔Square footage under roof
✔✔When a property that has a well is sold, what must be sent to ADWR? - ✔✔Transfer
of Well Rights Form
✔✔Under what condition would a listing agreement NOT terminate? - ✔✔The
salesperson dies
✔✔What document is recorded with the deed? - ✔✔affidavit of value
✔✔What is the maximum security deposit allowed under the Arizona Landlord Tenant
Act? - ✔✔1 1/2 month's rent
✔✔Real estate licensees should safeguard a client's or customer's personal information
in order to prevent - ✔✔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 - ✔✔is owner-occupied for more than one year
✔✔When a person buys a condo, how do they hold title to the common areas? -
✔✔Tenancy in Common
✔✔A person named in an insurance policy who will receive the insurance proceeds if
the property is damaged is the - ✔✔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 - ✔✔The HOA, if
there are more than 50 units
✔✔At close of escrow, which of the following forms must be filed with the IRS - ✔✔1099
S
✔✔Under what circumstances can an owner of a single-family residence depreciate the
property for tax purposes? - ✔✔if the property is a rental
,✔✔When land is purchased interstate, how long would a buyer have to rescind under
provisions of the Federal Interstate Land Sales Full Disclosure Act? - ✔✔Within 7 days
of receiving a property report
✔✔A lender of a conventional loan would require private mortgage insurance (PMI)
when the loan-to-value is - ✔✔More than 80%
✔✔Water rights for what Arizona rivers are being adjudicated in court? - ✔✔Gila and
Little Colorado Rivers
✔✔A septic tank report is valid for - ✔✔6 months
✔✔If a property lies within the boundaries of the areas in which water rights are being
adjudicated, the owners - ✔✔must file a claim to be included in the court's decision
✔✔What does the seller pay for at closing? - ✔✔deep preparation
✔✔A broker is hired by a seller to sell the clients real property. the broker must obey: -
✔✔All lawful instructions of the client
✔✔An expanded agency, which does not require the additional consent of the principal
for the agent to act, is a/an - ✔✔Agency by necessity
✔✔after economic life of property has expired, there exists - ✔✔residual value
✔✔Which of the following does not derive from a city's police power? - ✔✔Developer's
restrictive covenants
✔✔What would not apply to Police Power? - ✔✔Condemnation
✔✔Which of the items listed below is an interest in real property but not an estate? -
✔✔Mortgage
✔✔What would not be a legal principle when applying legal tests to fixtures? - ✔✔Cost
of the item
✔✔A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with which of the following liens remaining unpaid as of close of escrow: -
✔✔Property taxes for the current year for the property being sold
✔✔What type of legal description is based on a baseline and principal meridian? -
✔✔Rectangular survey system
, ✔✔Tom, Rick, and Harry own a house. When Rick dies, his heirs receive his 1/3
interest. What type of co-ownership did they have? - ✔✔Tenancy in common
✔✔Which of the following is not properly included in the concept of the power of
eminent domain: - ✔✔The right of government to confiscate property from the owner
✔✔Market price is closest to: - ✔✔The amount of money given in exchange for the
property (value in exchange)
✔✔Appraisal licensing is required by: - ✔✔FIRREA
✔✔Which of the following would be the best technique for an appraiser to use on a
single family residence that is new? - ✔✔The cost method is a valid approach which is
the most effective on newer properties
✔✔What is the adjusted gross income and how do you arrive at it? - ✔✔Total rents less
vacancies and credit losses
✔✔A salesperson's listing expired 3 days ago and the salesperson cannot reach the
seller for 3 weeks. What must the salesperson do? - ✔✔Remove the sign and wait to
re-list the property before proceeding with marketing
✔✔Who would be considered exempt under the Civil Rights Act of 1866? - ✔✔There
are no exemptions
✔✔Which of the following is correct about a lease purchase agreement? - ✔✔Obligation
to buy
✔✔When a broker represents a buyer only, what would be the relationship between the
buyer broker and seller? - ✔✔Customer
✔✔When does an agent working for the seller have a fiduciary duty to the buyer? -
✔✔When the agent is legally acting as a dual agent
✔✔During a phone call, a salesperson discusses showing a property to a prospect.
Three days later, the agent shows the property; at that time the customer reveals her
financial abilities and motivation. Three days after that, the agent prepares her offer; he
asks the buyer to sign an agency disclosure statement stating he represents the seller.
When should the agent have disclosed this fact? - ✔✔Before showing the house
✔✔What is not required for a valid buyer broker agreement? - ✔✔Retainer fee
ANSWERS RATED A+
✔✔The main purpose of the Federal Housing Administration is to... - ✔✔insure loans
✔✔The relationship between a broker and their salesperson is what type of agency? -
✔✔General
✔✔Which of the following is determined by measuring the exterior dimensions of a
home including garages, patios and entryways? - ✔✔Square footage under roof
✔✔When a property that has a well is sold, what must be sent to ADWR? - ✔✔Transfer
of Well Rights Form
✔✔Under what condition would a listing agreement NOT terminate? - ✔✔The
salesperson dies
✔✔What document is recorded with the deed? - ✔✔affidavit of value
✔✔What is the maximum security deposit allowed under the Arizona Landlord Tenant
Act? - ✔✔1 1/2 month's rent
✔✔Real estate licensees should safeguard a client's or customer's personal information
in order to prevent - ✔✔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 - ✔✔is owner-occupied for more than one year
✔✔When a person buys a condo, how do they hold title to the common areas? -
✔✔Tenancy in Common
✔✔A person named in an insurance policy who will receive the insurance proceeds if
the property is damaged is the - ✔✔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 - ✔✔The HOA, if
there are more than 50 units
✔✔At close of escrow, which of the following forms must be filed with the IRS - ✔✔1099
S
✔✔Under what circumstances can an owner of a single-family residence depreciate the
property for tax purposes? - ✔✔if the property is a rental
,✔✔When land is purchased interstate, how long would a buyer have to rescind under
provisions of the Federal Interstate Land Sales Full Disclosure Act? - ✔✔Within 7 days
of receiving a property report
✔✔A lender of a conventional loan would require private mortgage insurance (PMI)
when the loan-to-value is - ✔✔More than 80%
✔✔Water rights for what Arizona rivers are being adjudicated in court? - ✔✔Gila and
Little Colorado Rivers
✔✔A septic tank report is valid for - ✔✔6 months
✔✔If a property lies within the boundaries of the areas in which water rights are being
adjudicated, the owners - ✔✔must file a claim to be included in the court's decision
✔✔What does the seller pay for at closing? - ✔✔deep preparation
✔✔A broker is hired by a seller to sell the clients real property. the broker must obey: -
✔✔All lawful instructions of the client
✔✔An expanded agency, which does not require the additional consent of the principal
for the agent to act, is a/an - ✔✔Agency by necessity
✔✔after economic life of property has expired, there exists - ✔✔residual value
✔✔Which of the following does not derive from a city's police power? - ✔✔Developer's
restrictive covenants
✔✔What would not apply to Police Power? - ✔✔Condemnation
✔✔Which of the items listed below is an interest in real property but not an estate? -
✔✔Mortgage
✔✔What would not be a legal principle when applying legal tests to fixtures? - ✔✔Cost
of the item
✔✔A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with which of the following liens remaining unpaid as of close of escrow: -
✔✔Property taxes for the current year for the property being sold
✔✔What type of legal description is based on a baseline and principal meridian? -
✔✔Rectangular survey system
, ✔✔Tom, Rick, and Harry own a house. When Rick dies, his heirs receive his 1/3
interest. What type of co-ownership did they have? - ✔✔Tenancy in common
✔✔Which of the following is not properly included in the concept of the power of
eminent domain: - ✔✔The right of government to confiscate property from the owner
✔✔Market price is closest to: - ✔✔The amount of money given in exchange for the
property (value in exchange)
✔✔Appraisal licensing is required by: - ✔✔FIRREA
✔✔Which of the following would be the best technique for an appraiser to use on a
single family residence that is new? - ✔✔The cost method is a valid approach which is
the most effective on newer properties
✔✔What is the adjusted gross income and how do you arrive at it? - ✔✔Total rents less
vacancies and credit losses
✔✔A salesperson's listing expired 3 days ago and the salesperson cannot reach the
seller for 3 weeks. What must the salesperson do? - ✔✔Remove the sign and wait to
re-list the property before proceeding with marketing
✔✔Who would be considered exempt under the Civil Rights Act of 1866? - ✔✔There
are no exemptions
✔✔Which of the following is correct about a lease purchase agreement? - ✔✔Obligation
to buy
✔✔When a broker represents a buyer only, what would be the relationship between the
buyer broker and seller? - ✔✔Customer
✔✔When does an agent working for the seller have a fiduciary duty to the buyer? -
✔✔When the agent is legally acting as a dual agent
✔✔During a phone call, a salesperson discusses showing a property to a prospect.
Three days later, the agent shows the property; at that time the customer reveals her
financial abilities and motivation. Three days after that, the agent prepares her offer; he
asks the buyer to sign an agency disclosure statement stating he represents the seller.
When should the agent have disclosed this fact? - ✔✔Before showing the house
✔✔What is not required for a valid buyer broker agreement? - ✔✔Retainer fee
