ASREB Basic Real Estate
Test Questions with correct Answers
A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? - Correct
Answers -$75,141
A blind ad refers to an ad that - Correct Answers -gives no indication that the property is
listed with a broker
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered - Correct Answers -Equity
A broker, acting as a property manager, would be what type of agent? - Correct
Answers -General
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no
further payments. What clause would the lender now exercise? - Correct Answers –
acceleration
What is the maximum number of lots in a subdivision a person may own and sell without
having to apply for a public report? - Correct Answers -5
Once the ADRE publishes a subdivider's public report, assuming there are no material
changes, the public report is valid for - Correct Answers -5 years.
Education required for a real estate salesperson's license includes - Correct Answers -
90 hours of real estate education
Which of the following does the Arizona department of real estate enforce? - Correct
Answers -real estate statutes and rules
You buy unimproved land in a subdivision sight unseen. You have how long to rescind
the contract? - Correct Answers -6 months
How many brokers can a licensee work for at the same time in Arizona? - Correct
Answers -one at a time
When a new home is still under construction, the County Assessor may - Correct
Answers -increase the full cash value
,A contact has been signed, but title has not passed. The contract is - Correct Answers -
executory
a handicapped person is leasing a house that requires modification. Which of the
following is TRUE about the modification? - Correct Answers -The lessor can require
the lessee to reasonable restore the property at the end of the lease.
A holdover tenant would have a(n) - Correct Answers -estate at sufferance
Which of these property classifications is used for vacant land? - Correct Answers -
Class 2
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? - Correct Answers -$2,720
A lender refuses to loan or limits loans in a certain minority neighborhood. This action is
called. - Correct Answers -Redlining
A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is
removed. The bookcase would be considered - Correct Answers -a trade fixture
To finance the infrastructure for a subdivision development, Arizona law allows the
formation of - Correct Answers -Community Facilities Districts.
A listing broker receives several offers at the same time. The broker should - Correct
Answers -present all the offers
A loan estimate must be given to a borrower withing three business days - Correct
Answers -of loan application
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 -
Correct Answers -adverse possession
In what situation would a short sale be likely? - Correct Answers -The loan property is
greater than the property value
A real estate mortgage would be a(n) - Correct Answers -voluntary lien
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? - Correct Answers -$274.60 debit
, A right of way over Parcel A to Parcel B identifies Parcel B as the - Correct Answers -
dominant tenement
A company that acts as an intermediary between a lender and an appraiser is a(n) -
Correct Answers -appraisal management company
A seller lists a property with a brokerage, sells it himself, and does not have to pay a
commission. What kind of listing did the seller sign? - Correct Answers -exclusive
agency
A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current
mortgage, and wants $58,000 in cash for a down payment on another house. His listing
agreement obligates him to pay 7% commission to the brokerage. What is the minimum
selling price he can accept? - Correct Answers -$225,807
A seller wants to list a four plex and live in one unit, but doesn't want any children in the
units. What should the agent do? - Correct Answers -Refuse the listing; it violates fair
housing.
A valid contract must have - Correct Answers -offer and acceptance
If the percentage of renters in a community exceeds 50%, many lenders require that the
homeowners' association reserves be what percentage of HOA budgeted income? -
Correct Answers -20%
After a deed of trust foreclosure sale, which of the following is TRUE? - Correct
Answers -A trustee's deed is given to the new owner.
After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the
lender may ask for a(n) - Correct Answers -deficiency judgment.
All of the following would be considered appurtenant in a real estate transaction
EXCEPT - Correct Answers -annual crops
A property in which unrelated people who need care, support or supervision live
together and which is protected by fair housing laws from discrimination be neighbors is
a - Correct Answers -group home.
An option once exercised is considered - Correct Answers -unilateral executed
As of June 30th of any year, what must be the balance in the Real Estate Recovery
Fund to avoid additional fees to licensees? - Correct Answers -$600,000
At what point does recordation take place? - Correct Answers -when a docket and page
number are assigned
Test Questions with correct Answers
A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? - Correct
Answers -$75,141
A blind ad refers to an ad that - Correct Answers -gives no indication that the property is
listed with a broker
A borrower is required to put 10% down for the purchase of a property. The 10% down
would be considered - Correct Answers -Equity
A broker, acting as a property manager, would be what type of agent? - Correct
Answers -General
A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no
further payments. What clause would the lender now exercise? - Correct Answers –
acceleration
What is the maximum number of lots in a subdivision a person may own and sell without
having to apply for a public report? - Correct Answers -5
Once the ADRE publishes a subdivider's public report, assuming there are no material
changes, the public report is valid for - Correct Answers -5 years.
Education required for a real estate salesperson's license includes - Correct Answers -
90 hours of real estate education
Which of the following does the Arizona department of real estate enforce? - Correct
Answers -real estate statutes and rules
You buy unimproved land in a subdivision sight unseen. You have how long to rescind
the contract? - Correct Answers -6 months
How many brokers can a licensee work for at the same time in Arizona? - Correct
Answers -one at a time
When a new home is still under construction, the County Assessor may - Correct
Answers -increase the full cash value
,A contact has been signed, but title has not passed. The contract is - Correct Answers -
executory
a handicapped person is leasing a house that requires modification. Which of the
following is TRUE about the modification? - Correct Answers -The lessor can require
the lessee to reasonable restore the property at the end of the lease.
A holdover tenant would have a(n) - Correct Answers -estate at sufferance
Which of these property classifications is used for vacant land? - Correct Answers -
Class 2
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? - Correct Answers -$2,720
A lender refuses to loan or limits loans in a certain minority neighborhood. This action is
called. - Correct Answers -Redlining
A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is
removed. The bookcase would be considered - Correct Answers -a trade fixture
To finance the infrastructure for a subdivision development, Arizona law allows the
formation of - Correct Answers -Community Facilities Districts.
A listing broker receives several offers at the same time. The broker should - Correct
Answers -present all the offers
A loan estimate must be given to a borrower withing three business days - Correct
Answers -of loan application
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 -
Correct Answers -adverse possession
In what situation would a short sale be likely? - Correct Answers -The loan property is
greater than the property value
A real estate mortgage would be a(n) - Correct Answers -voluntary lien
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? - Correct Answers -$274.60 debit
, A right of way over Parcel A to Parcel B identifies Parcel B as the - Correct Answers -
dominant tenement
A company that acts as an intermediary between a lender and an appraiser is a(n) -
Correct Answers -appraisal management company
A seller lists a property with a brokerage, sells it himself, and does not have to pay a
commission. What kind of listing did the seller sign? - Correct Answers -exclusive
agency
A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current
mortgage, and wants $58,000 in cash for a down payment on another house. His listing
agreement obligates him to pay 7% commission to the brokerage. What is the minimum
selling price he can accept? - Correct Answers -$225,807
A seller wants to list a four plex and live in one unit, but doesn't want any children in the
units. What should the agent do? - Correct Answers -Refuse the listing; it violates fair
housing.
A valid contract must have - Correct Answers -offer and acceptance
If the percentage of renters in a community exceeds 50%, many lenders require that the
homeowners' association reserves be what percentage of HOA budgeted income? -
Correct Answers -20%
After a deed of trust foreclosure sale, which of the following is TRUE? - Correct
Answers -A trustee's deed is given to the new owner.
After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the
lender may ask for a(n) - Correct Answers -deficiency judgment.
All of the following would be considered appurtenant in a real estate transaction
EXCEPT - Correct Answers -annual crops
A property in which unrelated people who need care, support or supervision live
together and which is protected by fair housing laws from discrimination be neighbors is
a - Correct Answers -group home.
An option once exercised is considered - Correct Answers -unilateral executed
As of June 30th of any year, what must be the balance in the Real Estate Recovery
Fund to avoid additional fees to licensees? - Correct Answers -$600,000
At what point does recordation take place? - Correct Answers -when a docket and page
number are assigned
