ASREB Arizona School of Real Estate and
Business EXAM ALL 600 QUESTIONS AND
CORRECT ANSWERS
When a deed in lieu of foreclosure is given to a lender, which of the
following is true? - ✔✔✔ANSW✔✔..Time and cost are less
B buys land from W using a deed of trust as security for the carryback. B
makes all the payments except the final three and is now in default. W
does nothing and decides not to foreclose until later. By doing this W is
exercising his right of: - ✔✔✔ANSW✔✔..Forbearance
A commercial building is sold in a foreclosure for $100,000 less than the
balance due the lender. Which of the following is true? -
✔✔✔ANSW✔✔..The lender can obtain a deficiency judgment against
the borrower
Which of the agencies listed below guarantees loans? -
✔✔✔ANSW✔✔..GNMA
A buyer pays 20% down and obtains a real estate mortgage. The buyers
makes no further payments. What clause would the lender now
exercise? - ✔✔✔ANSW✔✔..Acceleration
A loan which is subordinate to other loans, but includes the amount of
the other loans is called: - ✔✔✔ANSW✔✔..Wraparound
,A seasoned loan refers to: - ✔✔✔ANSW✔✔..Good Payment History
Who has title in a land contract? - ✔✔✔ANSW✔✔..Vendor
What would discourage a buyer to take a bank wrap around mortgage? -
✔✔✔ANSW✔✔..Seller's loan has an alienation clause
After satisfying a first lien, what position is the second lien now in? -
✔✔✔ANSW✔✔..First Position
A property has both a first and second lien. Both are in default. Which of
the following statements are true? - ✔✔✔ANSW✔✔..The second would
be terminated if the first goes through a successful judicial foreclosure
FNMA is: - ✔✔✔ANSW✔✔..Government sponsored agency
Land contract is another name for: - ✔✔✔ANSW✔✔..Agreement for
Sale
When an estoppel certificate is used by a lender, he is primarily working
in the: - ✔✔✔ANSW✔✔..Secondary market
Which of the following would not apply to a mortgage? -
✔✔✔ANSW✔✔..Deed Recordation
Which of the following applies to the Federal National Mortgage
Association? - ✔✔✔ANSW✔✔..Government related agency
After a mortgage foreclosure, if the sale amount was insufficient to cover
the debt, the lender may ask for: - ✔✔✔ANSW✔✔..Deficiency judgment
,A vendor would be which of the following parties? -
✔✔✔ANSW✔✔..Seller in an agreement for sale
The vendee is the: - ✔✔✔ANSW✔✔..Buyer in an agreement for sale
What is it called when the Federal Reserve loans money to commercial
banks? - ✔✔✔ANSW✔✔..Discount rate
After a trustee's sale the excess proceeds go to the: -
✔✔✔ANSW✔✔..Trustor
A construction loan is generally considered a: - ✔✔✔ANSW✔✔..Short
term- interim
Construction loan monies are generally obtained from -
✔✔✔ANSW✔✔..Commercial banks
When a sale lease back takes place the advantage for the lessee is that
he can: - ✔✔✔ANSW✔✔..Deduct the rent as an expense
Which of the following could be borrowed in a tax deferred exchange? -
✔✔✔ANSW✔✔..Boot
When can the tax on a capital gain be deferred? -
✔✔✔ANSW✔✔..Property exchange
Which of the following would not be considered an income tax
deduction: - ✔✔✔ANSW✔✔..Tax depreciation on your personal
residence
, A real estate investment that acts as a mutual fund but does not give you
individual ownership is best described as a: - ✔✔✔ANSW✔✔..Real
Estate Investment Trust, a security instrument
When figuring capital gain from the sale of a property, which of the
following would lower your gain? - ✔✔✔ANSW✔✔..Capital
improvements
When a new stock is being offered to the public, which of the following
would most likely be offered as a disclosure? -
✔✔✔ANSW✔✔..Prospectus
If a party wants to maximize leverage, he should: -
✔✔✔ANSW✔✔..Have the highest loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least
likely be interested in: - ✔✔✔ANSW✔✔..short term loan
Boot is best defined as: - ✔✔✔ANSW✔✔..Loan interest
Regarding residential owner occupied property, which of the following
would be a deduction on a Federal Income Tax return -
✔✔✔ANSW✔✔..Price Paid
Buyer wants to know his cash on cash return. What is he most interested
in? - ✔✔✔ANSW✔✔..Investment
When can an owner of a single family residence depreciate the property
for tax purposes: - ✔✔✔ANSW✔✔..If the property is a rental
You own a duplex and rent one unit. Which of the following is true? -
✔✔✔ANSW✔✔..You may deduct the expenses only for the rented unit
Business EXAM ALL 600 QUESTIONS AND
CORRECT ANSWERS
When a deed in lieu of foreclosure is given to a lender, which of the
following is true? - ✔✔✔ANSW✔✔..Time and cost are less
B buys land from W using a deed of trust as security for the carryback. B
makes all the payments except the final three and is now in default. W
does nothing and decides not to foreclose until later. By doing this W is
exercising his right of: - ✔✔✔ANSW✔✔..Forbearance
A commercial building is sold in a foreclosure for $100,000 less than the
balance due the lender. Which of the following is true? -
✔✔✔ANSW✔✔..The lender can obtain a deficiency judgment against
the borrower
Which of the agencies listed below guarantees loans? -
✔✔✔ANSW✔✔..GNMA
A buyer pays 20% down and obtains a real estate mortgage. The buyers
makes no further payments. What clause would the lender now
exercise? - ✔✔✔ANSW✔✔..Acceleration
A loan which is subordinate to other loans, but includes the amount of
the other loans is called: - ✔✔✔ANSW✔✔..Wraparound
,A seasoned loan refers to: - ✔✔✔ANSW✔✔..Good Payment History
Who has title in a land contract? - ✔✔✔ANSW✔✔..Vendor
What would discourage a buyer to take a bank wrap around mortgage? -
✔✔✔ANSW✔✔..Seller's loan has an alienation clause
After satisfying a first lien, what position is the second lien now in? -
✔✔✔ANSW✔✔..First Position
A property has both a first and second lien. Both are in default. Which of
the following statements are true? - ✔✔✔ANSW✔✔..The second would
be terminated if the first goes through a successful judicial foreclosure
FNMA is: - ✔✔✔ANSW✔✔..Government sponsored agency
Land contract is another name for: - ✔✔✔ANSW✔✔..Agreement for
Sale
When an estoppel certificate is used by a lender, he is primarily working
in the: - ✔✔✔ANSW✔✔..Secondary market
Which of the following would not apply to a mortgage? -
✔✔✔ANSW✔✔..Deed Recordation
Which of the following applies to the Federal National Mortgage
Association? - ✔✔✔ANSW✔✔..Government related agency
After a mortgage foreclosure, if the sale amount was insufficient to cover
the debt, the lender may ask for: - ✔✔✔ANSW✔✔..Deficiency judgment
,A vendor would be which of the following parties? -
✔✔✔ANSW✔✔..Seller in an agreement for sale
The vendee is the: - ✔✔✔ANSW✔✔..Buyer in an agreement for sale
What is it called when the Federal Reserve loans money to commercial
banks? - ✔✔✔ANSW✔✔..Discount rate
After a trustee's sale the excess proceeds go to the: -
✔✔✔ANSW✔✔..Trustor
A construction loan is generally considered a: - ✔✔✔ANSW✔✔..Short
term- interim
Construction loan monies are generally obtained from -
✔✔✔ANSW✔✔..Commercial banks
When a sale lease back takes place the advantage for the lessee is that
he can: - ✔✔✔ANSW✔✔..Deduct the rent as an expense
Which of the following could be borrowed in a tax deferred exchange? -
✔✔✔ANSW✔✔..Boot
When can the tax on a capital gain be deferred? -
✔✔✔ANSW✔✔..Property exchange
Which of the following would not be considered an income tax
deduction: - ✔✔✔ANSW✔✔..Tax depreciation on your personal
residence
, A real estate investment that acts as a mutual fund but does not give you
individual ownership is best described as a: - ✔✔✔ANSW✔✔..Real
Estate Investment Trust, a security instrument
When figuring capital gain from the sale of a property, which of the
following would lower your gain? - ✔✔✔ANSW✔✔..Capital
improvements
When a new stock is being offered to the public, which of the following
would most likely be offered as a disclosure? -
✔✔✔ANSW✔✔..Prospectus
If a party wants to maximize leverage, he should: -
✔✔✔ANSW✔✔..Have the highest loan to value ratio
When a buyer is using 100% leverage in a transaction, they would least
likely be interested in: - ✔✔✔ANSW✔✔..short term loan
Boot is best defined as: - ✔✔✔ANSW✔✔..Loan interest
Regarding residential owner occupied property, which of the following
would be a deduction on a Federal Income Tax return -
✔✔✔ANSW✔✔..Price Paid
Buyer wants to know his cash on cash return. What is he most interested
in? - ✔✔✔ANSW✔✔..Investment
When can an owner of a single family residence depreciate the property
for tax purposes: - ✔✔✔ANSW✔✔..If the property is a rental
You own a duplex and rent one unit. Which of the following is true? -
✔✔✔ANSW✔✔..You may deduct the expenses only for the rented unit
