ASREB Practice Exam, Sessions 1-18, Study Guide with Complete Solutions

ASREB Practice Exam, Sessions 1-18, Study Guide with Complete Solutions ASREB - Correct Answer ️️ - A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? A) $37,570 B) $75,141 C) $76,230 D) $78,712 - Correct Answer ️️ -B 3.45 acres x 43,560 = 150,282 SF 150,282 SF x $0.50 = $75,141 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 bene sold or not. - Correct Answer ️️ -C 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. - Correct Answer ️️ -A A broker, acting as a property manager, would be what type of agent? A) special B) general C) implied D) ostensible - Correct Answer ️️ -B 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 - Correct Answer ️️ -D When a new home is still under construction, the County Assessor may A) increase the assessed value ration. B) increase the full cash value. C) decrease the tax rate. D) appeal the limited property value. - Correct Answer ️️ -B A contract has been signed, but title has not yet been passed. The contract is A) executed. B) executory. C) recorded D) estopped. - Correct Answer ️️ -B A handicapped person is leasing a house that requires modification. Which of the following is TRUE about the modification? 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. - Correct Answer ️️ -B A holdover tenant would have a(n) A) estate at sufferance. B) estate at well. C) freehold estate. D) remainder estate. - Correct Answer ️️ -A Which of these property classifications is used for vacant land? A) Class 1 B) Class 2 C) Class 3 D) Class 4 - Correct Answer ️️ -B 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) $400 B) $1,280 C) $2,720 D) $4,000 - Correct Answer ️️ -C $68,000 X 0.04 = $2,720 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. - Correct Answer ️️ -C 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. - Correct Answer ️️ -B 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 - Correct Answer ️️ -B A listing broker receives several offers at the same time. The broker should A) present only the best. B) present all the offers. C) present the three best. D) wait for more offers before presenting to the seller. - Correct Answer ️️ -B 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. - Correct Answer ️️ -A 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 it was done so through A) easement by prescription. B) adverse possession. C) escheat. D) eminent domain. - Correct Answer ️️ -B 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. - Correct Answer ️️ -A A real estate mortgage would be a(n) A) involuntary lien. B) general lien. C) voluntary lien. D) statutory lien. - Correct Answer ️️ -C A real estate sale was closed on March 21. The assessed value of the property is $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? A) $278.08 debit B) $278.08 credit C) $274.60 debit D) $274.60 credit - Correct Answer ️️ -C