ASREB Practice exam 2025 Questions
and Answers
Formula for finding property value when you have the net operating income and
cap rate - --CORRECT ANSWER--Current market value(CMV)= NOI/ cap rate
Example: CMV=$5.480/ .08(8%) =$68,500
When would IRS form 1099S be used? - --CORRECT ANSWER--Report sales
price
What's a 1099s forms - --CORRECT ANSWER--Known as an "information
return. The form the federal government requires to be filed when selling real
estate. If you sold any real property during the course of the year, you must will
receive a form 1099-S
RESPA (Real Estate Settlement Procedures Act) - --CORRECT ANSWER--a law
requiring full disclosure of closing costs to buyer and seller.
What is not covered by RESPA? - --CORRECT ANSWER--Cash Sale
The CAN-SPAM law would apply to unsolicited - --CORRECT ANSWER--
Unsolicited E-mail
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is an operating expense item on a property ? - --CORRECT ANSWER--
Management fees
S corporation - --CORRECT ANSWER--a form of corporation that avoids double
taxation by having its income taxed as if it were a partnership
Which of the following is true regarding an "S Coporation" - --CORRECT
ANSWER--limited number of investeros
Regulation Z (Truth in Lending) - --CORRECT ANSWER--requires full written
disclosure about finance charges for large payment plans involving four or more
installments, excluding a down payment
The books "Settlement costs and You" is a requirement of: - --CORRECT
ANSWER--RESPA. Booklet heralds from RESPA
The real estate settlement procedures act would apply to: - --CORRECT
ANSWER--1-4 plex residential property
Americans with Disabilities Act (ADA) - --CORRECT ANSWER--Act addresses
rights of individuals with disabilities in employment and public accommodations.
Title 1 of ADA applies to employers: - --CORRECT ANSWER--With fifteen or
more full time employees
What would be covered under the family status of fair housing? - --CORRECT
ANSWER--A pregnant woman is included in familial status
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Fair Housing Act - --CORRECT ANSWER--The federal law that prohibits
discrimination in housing based on race, color, religion, sex, handicap, familial
status, and national origin
Real estate agents may call a person on the DO NOT CALL Registry if: - --
CORRECT ANSWER--The agent has an established business relationship
To have a qualified deferred exchange, what would be required? - --CORRECT
ANSWER--Properties must be held for investment
What is exempt from federal fair housing ? - --CORRECT ANSWER--Four-plex
owner occupied
The first violation of the federal fair housing act would carry a fine of? - --
CORRECT ANSWER--$16000
If a property has the right to exclude families with children, which of the following
parties listed below would be allowed to reside in the property? - --CORRECT
ANSWER--a 62 year old retired doctor
The maximum amount of gain that would be tax-free to married homeowners who
sells their residence would be? - --CORRECT ANSWER--500,000
What is NOT part of a tax deferred exchange? - --CORRECT ANSWER--Highest
and best use
A property owner may refuse to rent to a prospective tenant under which of the
following conditions? - --CORRECT ANSWER--Tenant is a convicted drug user
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
and Answers
Formula for finding property value when you have the net operating income and
cap rate - --CORRECT ANSWER--Current market value(CMV)= NOI/ cap rate
Example: CMV=$5.480/ .08(8%) =$68,500
When would IRS form 1099S be used? - --CORRECT ANSWER--Report sales
price
What's a 1099s forms - --CORRECT ANSWER--Known as an "information
return. The form the federal government requires to be filed when selling real
estate. If you sold any real property during the course of the year, you must will
receive a form 1099-S
RESPA (Real Estate Settlement Procedures Act) - --CORRECT ANSWER--a law
requiring full disclosure of closing costs to buyer and seller.
What is not covered by RESPA? - --CORRECT ANSWER--Cash Sale
The CAN-SPAM law would apply to unsolicited - --CORRECT ANSWER--
Unsolicited E-mail
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 1
,What is an operating expense item on a property ? - --CORRECT ANSWER--
Management fees
S corporation - --CORRECT ANSWER--a form of corporation that avoids double
taxation by having its income taxed as if it were a partnership
Which of the following is true regarding an "S Coporation" - --CORRECT
ANSWER--limited number of investeros
Regulation Z (Truth in Lending) - --CORRECT ANSWER--requires full written
disclosure about finance charges for large payment plans involving four or more
installments, excluding a down payment
The books "Settlement costs and You" is a requirement of: - --CORRECT
ANSWER--RESPA. Booklet heralds from RESPA
The real estate settlement procedures act would apply to: - --CORRECT
ANSWER--1-4 plex residential property
Americans with Disabilities Act (ADA) - --CORRECT ANSWER--Act addresses
rights of individuals with disabilities in employment and public accommodations.
Title 1 of ADA applies to employers: - --CORRECT ANSWER--With fifteen or
more full time employees
What would be covered under the family status of fair housing? - --CORRECT
ANSWER--A pregnant woman is included in familial status
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 2
, Fair Housing Act - --CORRECT ANSWER--The federal law that prohibits
discrimination in housing based on race, color, religion, sex, handicap, familial
status, and national origin
Real estate agents may call a person on the DO NOT CALL Registry if: - --
CORRECT ANSWER--The agent has an established business relationship
To have a qualified deferred exchange, what would be required? - --CORRECT
ANSWER--Properties must be held for investment
What is exempt from federal fair housing ? - --CORRECT ANSWER--Four-plex
owner occupied
The first violation of the federal fair housing act would carry a fine of? - --
CORRECT ANSWER--$16000
If a property has the right to exclude families with children, which of the following
parties listed below would be allowed to reside in the property? - --CORRECT
ANSWER--a 62 year old retired doctor
The maximum amount of gain that would be tax-free to married homeowners who
sells their residence would be? - --CORRECT ANSWER--500,000
What is NOT part of a tax deferred exchange? - --CORRECT ANSWER--Highest
and best use
A property owner may refuse to rent to a prospective tenant under which of the
following conditions? - --CORRECT ANSWER--Tenant is a convicted drug user
....COPYRIGHT ©️ 2025 ALL RIGHTS RESERVED...TRUSTED & VERIFIED 3
