ASREB TEST EXAM QUESTIONS WITH
CORRECT ANSWERS
Which of the items listed below is an interest in real property but not an estate? -
ANSWER-Mortgage
What would not be a legal principle when applying legal tests to fixtures? -
ANSWER-Cost of the item
A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with which of the following liens remaining unpaid as of close of escrow: -
ANSWER-Property taxes for the current year for the property being sold
What type of legal description is based on a baseline and principal meridian? -
ANSWER-Rectangular survey system
Tom, Rick, and Harry own a house. When Rick dies, his heirs receive his 1/3
interest. What type of co-ownership did they have? - ANSWER-Tenancy in common
Which of the following is not properly included in the concept of the power of eminent
domain: - ANSWER-The right of government to confiscate property from the owner
Market price is closest to: - ANSWER-The amount of money given in exchange for
the property (value in exchange)
Appraisal licensing is required by: - ANSWER-FIRREA
Which of the following would be the best technique for an appraiser to use on a
single family residence that is new? - ANSWER-The cost method is a valid approach
which is the most effective on newer properties
What is the adjusted gross income and how do you arrive at it? - ANSWER-Total
rents less vacancies and credit losses
A salesperson's listing expired 3 days ago and the salesperson cannot reach the
seller for 3 weeks. What must the salesperson do? - ANSWER-Remove the sign and
wait to re-list the property before proceeding with marketing
Who would be considered exempt under the Civil Rights Act of 1866? - ANSWER-
There are no exemptions
Which of the following is correct about a lease purchase agreement? - ANSWER-
Obligation to buy
When a broker represents a buyer only, what would be the relationship between the
buyer broker and seller? - ANSWER-Customer
,When does an agent working for the seller have a fiduciary duty to the buyer? -
ANSWER-When the agent is legally acting as a dual agent
During a phone call, a salesperson discusses showing a property to a prospect.
Three days later, the agent shows the property; at that time the customer reveals her
financial abilities and motivation. Three days after that, the agent prepares her offer;
he asks the buyer to sign an agency disclosure statement stating he represents the
seller. When should the agent have disclosed this fact? - ANSWER-Before showing
the house
What is not required for a valid buyer broker agreement? - ANSWER-Retainer fee
If the seller retains the buyer's earnest money due to a contract breach, this would
be called - ANSWER-Liquidated damages
What type of listing would be considered more unilateral than bilateral? - ANSWER-
Open
When a buyer and seller agree to cancel a contract, under normal conditions who
would receive the earnest money? - ANSWER-Buyer
Sue decides to put her broker's license on deposit in order to reactivate her license
as a salesperson. She then affiliates with another broker and orders business cards
that read: Sue Smith, Broker. If she is acting as a salesperson, can she put "broker"
on her cards? - ANSWER-Yes, if she also includes the words "on deposit"
Which of the following would NOT terminate an agency relationship? - ANSWER-
Accepting an offer and opening escrow
When property zoning is changed from single family to commercial usage, this
change would be called: - ANSWER-Up zoning
A buyer is purchasing a home located within a homeowner's association. The home
has a violation that is not known by the association and is not disclosed to the buyer.
What is true regarding the violation? - ANSWER-Buyer may be required to correct
the violation
A conditional use permit allows: - ANSWER-Help for property owners with special
needs
What is the legal process by which potentially responsible parties who contributed to
contamination at a Superfund site can be required to reimburse the trust fund for
money spent during any clean up actions by the federal government? - ANSWER-
cost recovery
A lead-based paint disclosure form is required for all residential dwellings built before
January 1, 1978. When applicable, who must sign the form? - ANSWER-buyer,
seller, and both agents
, When a property is in foreclosure and the owner files bankruptcy, what is the present
status of the foreclosure? - ANSWER-The foreclosure will automatically be put on
hold
The three-day right to rescind is granted under ... - ANSWER-Regulation Z
In a blanket mortgage, which special clause would you most likely find? - ANSWER-
Release
What law requires lenders to limit the amount of funds that can be held in reserves? -
ANSWER-RESPA
Who has title on a land contract? - ANSWER-vendor
What is a bringdown search (fee)? - ANSWER-Updates the title prior to close of
escrow
All the following statements about a deed in lieu of foreclosure is true EXCEPT: -
ANSWER-Deed recorded by the lender and eliminates all junior liens
If a tenant abandons a residential apartment, the landlord must do all of the following
EXCEPT... - ANSWER-Sell the tenant's personal property after holding it for 10 days
How many townships are in a 24-mile square? - ANSWER-16
If there are material changes from an original Public Report, the Commissioner may
required the subdivider to create a(n)... - ANSWER-amended Public Report
If cap rates in an area are going up, how does this influence value? - ANSWER-
Value goes down
In Arizona, property owned before marriage is sole and separate. Property acquired
after marriage would be considered... - ANSWER-Community Property
The right of an Arizona real estate licensee to prepare certain legal documents and
forms comes from... - ANSWER-The Arizona Constitution
What clarifies ADRE's position on statues or rules? - ANSWER-Substantive Policy
Statements
The concept that information given to a client's agent has been given to the client is
known as - ANSWER-Imputed Notice
On a settlement statement, rent paid in advance would be a... - ANSWER-credit to
the buyer, debit to the seller
If the buyer of a property wants to remain anonymous, what terms should be used
for that buyer's name in the purchase contract? - ANSWER-Or Nominee
CORRECT ANSWERS
Which of the items listed below is an interest in real property but not an estate? -
ANSWER-Mortgage
What would not be a legal principle when applying legal tests to fixtures? -
ANSWER-Cost of the item
A buyer is obtaining a new loan to purchase property. The buyer is most likely to
accept title with which of the following liens remaining unpaid as of close of escrow: -
ANSWER-Property taxes for the current year for the property being sold
What type of legal description is based on a baseline and principal meridian? -
ANSWER-Rectangular survey system
Tom, Rick, and Harry own a house. When Rick dies, his heirs receive his 1/3
interest. What type of co-ownership did they have? - ANSWER-Tenancy in common
Which of the following is not properly included in the concept of the power of eminent
domain: - ANSWER-The right of government to confiscate property from the owner
Market price is closest to: - ANSWER-The amount of money given in exchange for
the property (value in exchange)
Appraisal licensing is required by: - ANSWER-FIRREA
Which of the following would be the best technique for an appraiser to use on a
single family residence that is new? - ANSWER-The cost method is a valid approach
which is the most effective on newer properties
What is the adjusted gross income and how do you arrive at it? - ANSWER-Total
rents less vacancies and credit losses
A salesperson's listing expired 3 days ago and the salesperson cannot reach the
seller for 3 weeks. What must the salesperson do? - ANSWER-Remove the sign and
wait to re-list the property before proceeding with marketing
Who would be considered exempt under the Civil Rights Act of 1866? - ANSWER-
There are no exemptions
Which of the following is correct about a lease purchase agreement? - ANSWER-
Obligation to buy
When a broker represents a buyer only, what would be the relationship between the
buyer broker and seller? - ANSWER-Customer
,When does an agent working for the seller have a fiduciary duty to the buyer? -
ANSWER-When the agent is legally acting as a dual agent
During a phone call, a salesperson discusses showing a property to a prospect.
Three days later, the agent shows the property; at that time the customer reveals her
financial abilities and motivation. Three days after that, the agent prepares her offer;
he asks the buyer to sign an agency disclosure statement stating he represents the
seller. When should the agent have disclosed this fact? - ANSWER-Before showing
the house
What is not required for a valid buyer broker agreement? - ANSWER-Retainer fee
If the seller retains the buyer's earnest money due to a contract breach, this would
be called - ANSWER-Liquidated damages
What type of listing would be considered more unilateral than bilateral? - ANSWER-
Open
When a buyer and seller agree to cancel a contract, under normal conditions who
would receive the earnest money? - ANSWER-Buyer
Sue decides to put her broker's license on deposit in order to reactivate her license
as a salesperson. She then affiliates with another broker and orders business cards
that read: Sue Smith, Broker. If she is acting as a salesperson, can she put "broker"
on her cards? - ANSWER-Yes, if she also includes the words "on deposit"
Which of the following would NOT terminate an agency relationship? - ANSWER-
Accepting an offer and opening escrow
When property zoning is changed from single family to commercial usage, this
change would be called: - ANSWER-Up zoning
A buyer is purchasing a home located within a homeowner's association. The home
has a violation that is not known by the association and is not disclosed to the buyer.
What is true regarding the violation? - ANSWER-Buyer may be required to correct
the violation
A conditional use permit allows: - ANSWER-Help for property owners with special
needs
What is the legal process by which potentially responsible parties who contributed to
contamination at a Superfund site can be required to reimburse the trust fund for
money spent during any clean up actions by the federal government? - ANSWER-
cost recovery
A lead-based paint disclosure form is required for all residential dwellings built before
January 1, 1978. When applicable, who must sign the form? - ANSWER-buyer,
seller, and both agents
, When a property is in foreclosure and the owner files bankruptcy, what is the present
status of the foreclosure? - ANSWER-The foreclosure will automatically be put on
hold
The three-day right to rescind is granted under ... - ANSWER-Regulation Z
In a blanket mortgage, which special clause would you most likely find? - ANSWER-
Release
What law requires lenders to limit the amount of funds that can be held in reserves? -
ANSWER-RESPA
Who has title on a land contract? - ANSWER-vendor
What is a bringdown search (fee)? - ANSWER-Updates the title prior to close of
escrow
All the following statements about a deed in lieu of foreclosure is true EXCEPT: -
ANSWER-Deed recorded by the lender and eliminates all junior liens
If a tenant abandons a residential apartment, the landlord must do all of the following
EXCEPT... - ANSWER-Sell the tenant's personal property after holding it for 10 days
How many townships are in a 24-mile square? - ANSWER-16
If there are material changes from an original Public Report, the Commissioner may
required the subdivider to create a(n)... - ANSWER-amended Public Report
If cap rates in an area are going up, how does this influence value? - ANSWER-
Value goes down
In Arizona, property owned before marriage is sole and separate. Property acquired
after marriage would be considered... - ANSWER-Community Property
The right of an Arizona real estate licensee to prepare certain legal documents and
forms comes from... - ANSWER-The Arizona Constitution
What clarifies ADRE's position on statues or rules? - ANSWER-Substantive Policy
Statements
The concept that information given to a client's agent has been given to the client is
known as - ANSWER-Imputed Notice
On a settlement statement, rent paid in advance would be a... - ANSWER-credit to
the buyer, debit to the seller
If the buyer of a property wants to remain anonymous, what terms should be used
for that buyer's name in the purchase contract? - ANSWER-Or Nominee
