ASREB EXAM 2 UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
How can syndicate banking be described?
Answer:
A group of investment banks acting together when lending large amounts of money to a specific company
Question:
What does the type of legal description that references monuments and landmarks best describe?
Answer:
Metes and bounds
Question:
A homeowner in a newly developed subdivision wants to add an extra bedroom extending off the back of the
house. No similar additions have been made by other homeowners yet. What must the homeowner obtain
before beginning construction?
Answer:
Building permit
Question:
The type of legal description that references fixed monuments and natural landmarks is:
Answer:
Metes and bounds
Question:
A developer sued the government for the value lost when zoning restrictions prevented a commercial
development. What is this legal challenge called?
Answer:
Inverse condemnation
Question:
Under which legal principle does a landowner gain ownership of oil or gas once it is extracted from the ground,
even if it migrated from a neighboring property?
Answer:
Rule of capture
Question:
If a developer divides a parcel into several lots and forgets to formally record an easement for access roads, but
the use of the roads is obvious and necessary, what kind of easement may a court recognize?
Answer:
Easement by implication
Question:
A real estate investment business organized as a trust best describes a/an:
Answer:
REIT
, Question:
What does the term "effective gross income" account for?
Answer:
Potential gross income minus vacancy and credit loss
Question:
Why is land generally excluded from the insurable value of a property?
Answer:
Land cannot be destroyed
Question:
Real estate licensees, who are employed by a real estate broker, will be categorized by the IRS in two ways.
What are they?
Answer:
Employees or independent contractors
Question:
Which best describes negligence that causes harm?
Answer:
Tort
Question:
When a real estate licensee agrees to work for a specific brokerage, what type of agent are they to the broker?
Answer:
General
Question:
A transactional broker does which of the following?
Answer:
Offers limited assistance to both parties without representing either
Question:
A property is listed for $200,000. A potential buyer tells the listing agent they might offer $190,000. In
response, the listing agent tells the buyer that the seller won't accept anything less than $195,000. The buyer
then offers $195,000, and the seller accepts the offer. Which of the following statements is TRUE?
Answer:
The listing agent breached their fiduciary duty to the seller by disclosing confidential information about the
seller's minimum acceptable price.
Question:
Who would be considered exempt under the Civil Rights Act of 1866?
Answer:
There are no exemptions
Question:
A salesperson has a direct fiduciary duty to whom?
Answer:
Broker
CORRECT ANSWERS
Question:
How can syndicate banking be described?
Answer:
A group of investment banks acting together when lending large amounts of money to a specific company
Question:
What does the type of legal description that references monuments and landmarks best describe?
Answer:
Metes and bounds
Question:
A homeowner in a newly developed subdivision wants to add an extra bedroom extending off the back of the
house. No similar additions have been made by other homeowners yet. What must the homeowner obtain
before beginning construction?
Answer:
Building permit
Question:
The type of legal description that references fixed monuments and natural landmarks is:
Answer:
Metes and bounds
Question:
A developer sued the government for the value lost when zoning restrictions prevented a commercial
development. What is this legal challenge called?
Answer:
Inverse condemnation
Question:
Under which legal principle does a landowner gain ownership of oil or gas once it is extracted from the ground,
even if it migrated from a neighboring property?
Answer:
Rule of capture
Question:
If a developer divides a parcel into several lots and forgets to formally record an easement for access roads, but
the use of the roads is obvious and necessary, what kind of easement may a court recognize?
Answer:
Easement by implication
Question:
A real estate investment business organized as a trust best describes a/an:
Answer:
REIT
, Question:
What does the term "effective gross income" account for?
Answer:
Potential gross income minus vacancy and credit loss
Question:
Why is land generally excluded from the insurable value of a property?
Answer:
Land cannot be destroyed
Question:
Real estate licensees, who are employed by a real estate broker, will be categorized by the IRS in two ways.
What are they?
Answer:
Employees or independent contractors
Question:
Which best describes negligence that causes harm?
Answer:
Tort
Question:
When a real estate licensee agrees to work for a specific brokerage, what type of agent are they to the broker?
Answer:
General
Question:
A transactional broker does which of the following?
Answer:
Offers limited assistance to both parties without representing either
Question:
A property is listed for $200,000. A potential buyer tells the listing agent they might offer $190,000. In
response, the listing agent tells the buyer that the seller won't accept anything less than $195,000. The buyer
then offers $195,000, and the seller accepts the offer. Which of the following statements is TRUE?
Answer:
The listing agent breached their fiduciary duty to the seller by disclosing confidential information about the
seller's minimum acceptable price.
Question:
Who would be considered exempt under the Civil Rights Act of 1866?
Answer:
There are no exemptions
Question:
A salesperson has a direct fiduciary duty to whom?
Answer:
Broker
