ASREB TEST REVIEW QUESTIONS AND ACCURATE
ANSWERS
Within the Arizona Groundwater Code all of the following rights were created EXCEPT?
- Answers - Subdivision grandfather right
What is required to give someone the right to sign your name? - Answers - Power of
Attorney
The buyer has an investment that has a feature of "a pass through certificate" this
investment is most likely a: - Answers - Ginnie Mae Security
When an occupant holds a long term proprietary lease this is referred to as: - Answers -
Co-operative
Homeowners insurance on a closing statement will always be: - Answers - Debit to the
buyer
In a listing of property for sale which item is not necessary for a valid exclusive listing? -
Answers - Address of property
What type of an estate would a tenant have? - Answers - Leasehold
When a brokerage is charged an administrative fine the amount of the fine is up to: -
Answers - $1,000
In a listing agreement the seller would be the: - Answers - Employer
An auctioneer may only auction real property in the state of Arizona if:
a. the property is foreclosure
b. the property is owned community property
c. the auctioneer is affiliated with a license broker
d. the property is owned with rights of survivorship - Answers - c. the auctioneer is
affiliated with a license broker
In a sale of a mortgage document what is the relationship of the parties? - Answers -
assignor to assignee
Which of the following is used to establish premiums for flood insurance? - Answers -
Elevation certificate
A lender charges 2 points at a cost of $2800, the lender will loan 85% of the purchase
price. What is the purchase price? - Answers - $164,705
, A licensee who has been notified by the Arizona Department of real estate that a
complaint has been issued has how many days to respond? - Answers - 14 calendar
days
A lot is originally purchased for $10,500. It is sold at a 20% loss and then resold with a
10% commission. What was the net loss on the property? - Answers - $2,940
The term "capitalization rate" refers to: - Answers - The net income divided by the price
What is the maximum dollar amount of improvements a fixer/flipper can make without
using a licensed contractor? - Answers - $1,000
A broker runs an ad for a salesperson to work certain hours/holidays. The salesperson
would most likely be considered: - Answers - Employee
When the note and security instrument are in one document, this would be a: - Answers
- Land contract
The type of mortgage where the lender pays the borrower based on the equity of a
home is called? - Answers - Reverse annuity
Which of the following is not a type of insurance that protects a real estate broker from
liability? - Answers - Umbrella insurance
When property zoning is changed from single-family to commercial usage, this change
would be called: - Answers - Up zoning
When must a licensee report a criminal conviction to the real estate department? -
Answers - 10 days
If a buyer fails to perform under a real estate purchase contract, the sellers recourse is:
- Answers - A suit for damages, or call for forfeiture of the earnest money as liquidated
damages
When an easement only has a servient tenement it would be an easement: - Answers -
in gross
When can the tax on capital gains be deferred? - Answers - Property exchange
What clarifies ADRE position on statutes or rules? - Answers - Substantive policy
statements
In order to obtain an easement by prescription you need: - Answers - To use the
property
ANSWERS
Within the Arizona Groundwater Code all of the following rights were created EXCEPT?
- Answers - Subdivision grandfather right
What is required to give someone the right to sign your name? - Answers - Power of
Attorney
The buyer has an investment that has a feature of "a pass through certificate" this
investment is most likely a: - Answers - Ginnie Mae Security
When an occupant holds a long term proprietary lease this is referred to as: - Answers -
Co-operative
Homeowners insurance on a closing statement will always be: - Answers - Debit to the
buyer
In a listing of property for sale which item is not necessary for a valid exclusive listing? -
Answers - Address of property
What type of an estate would a tenant have? - Answers - Leasehold
When a brokerage is charged an administrative fine the amount of the fine is up to: -
Answers - $1,000
In a listing agreement the seller would be the: - Answers - Employer
An auctioneer may only auction real property in the state of Arizona if:
a. the property is foreclosure
b. the property is owned community property
c. the auctioneer is affiliated with a license broker
d. the property is owned with rights of survivorship - Answers - c. the auctioneer is
affiliated with a license broker
In a sale of a mortgage document what is the relationship of the parties? - Answers -
assignor to assignee
Which of the following is used to establish premiums for flood insurance? - Answers -
Elevation certificate
A lender charges 2 points at a cost of $2800, the lender will loan 85% of the purchase
price. What is the purchase price? - Answers - $164,705
, A licensee who has been notified by the Arizona Department of real estate that a
complaint has been issued has how many days to respond? - Answers - 14 calendar
days
A lot is originally purchased for $10,500. It is sold at a 20% loss and then resold with a
10% commission. What was the net loss on the property? - Answers - $2,940
The term "capitalization rate" refers to: - Answers - The net income divided by the price
What is the maximum dollar amount of improvements a fixer/flipper can make without
using a licensed contractor? - Answers - $1,000
A broker runs an ad for a salesperson to work certain hours/holidays. The salesperson
would most likely be considered: - Answers - Employee
When the note and security instrument are in one document, this would be a: - Answers
- Land contract
The type of mortgage where the lender pays the borrower based on the equity of a
home is called? - Answers - Reverse annuity
Which of the following is not a type of insurance that protects a real estate broker from
liability? - Answers - Umbrella insurance
When property zoning is changed from single-family to commercial usage, this change
would be called: - Answers - Up zoning
When must a licensee report a criminal conviction to the real estate department? -
Answers - 10 days
If a buyer fails to perform under a real estate purchase contract, the sellers recourse is:
- Answers - A suit for damages, or call for forfeiture of the earnest money as liquidated
damages
When an easement only has a servient tenement it would be an easement: - Answers -
in gross
When can the tax on capital gains be deferred? - Answers - Property exchange
What clarifies ADRE position on statutes or rules? - Answers - Substantive policy
statements
In order to obtain an easement by prescription you need: - Answers - To use the
property
