Arizona School of Real Estate and Business (ASREB) Practice Exam

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• What does an easement allow a person to do?
• What key aspect does the "highest and best use" principle assess?
• An escrow company may disburse commissions directly to a broker's salesperson if the:
• Which form must be filed with the IRS at escrow?
• What is "foreclosure" in the context of real estate?
• If a lessee removes a bookcase installed for commercial use at the end of a lease, how is this bookcase classified?
• All of the following would be considered appurtenant in a real estate transaction EXCEPT
• What does the term "landlocked" signify in property law?
• What does the term "earnest money" signify in a real estate transaction?
• If a buyer purchases a parcel of land where the public report was required but not issued, how long does the buyer have to void the sale?
• In joint tenancy, what right do co-owners have after one owner passes away?
• How is a "conventional loan" defined?
• A holdover tenant would have a(n)?
• 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?
• What event marks the beginning of recordation for a property deed?
• What does "due diligence" involve in real estate transactions?
• A valid contract must have
• Under what condition would a listing agreement NOT terminate?
• What does a "real estate appraisal" evaluate?
• What is a distinguishing feature of FHA loans?
• What happens when the Real Estate Commissioner receives a written complaint against a licensee?
• What is the tax assessment rate applied to owner-occupied residential property in Arizona?
• Which party is primarily responsible for giving notice of abandonment when a tenant leaves a property?
• What does "appurtenant easement" mean?
• What is the homestead exemption amount in Arizona?
• A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered?
• The word friable would most likely apply to which of the following?
• Which of the following factors does NOT typically affect market value in real estate?
• A legal description reads as follows: "The NW 1/4 of Section 2 and the W 1/2 of the SW 1/4 of Section 35." How many acres is this?
• Which statement best describes a short sale?
• What does the term "home warranty" refer to?
• How can a multiple listing service (MLS) benefit real estate professionals?
• What is the purpose of a homestead exemption?
• Which of the following best defines "adverse possession"?
• On a settlement statement, rent that has been paid in advance would be classified as what type of entry?
• How soon must a Loan Estimate be provided to a borrower after loan application?
• In a real estate contract, what are contingencies?
• What is a "multiple listing service" (MLS)?
• What type of ownership allows two or more individuals to have equal rights and survivorship?
• What typically dictates the assessed value of a property?
• In real estate, what is the process of foreclosure primarily aimed at?
• What is the purpose of a conditional use permit in real estate?
• A blind ad refers to an ad that?
• What term is used to describe rows of townships?
• What is the required down payment for a VA guaranteed loan?
• What is market segmentation in real estate?
• What does the term "gleaned from property" refer to in property appraisal?
• Which of the following is determined by measuring the exterior dimensions of a home including garages, patios, and entryways?
• When a person buys a condo, how do they hold title to the common areas?
• If there are material changes from an original Public Report, what may the Commissioner require from the subdivider?
• 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?
• Which of the following is typically included in "real property"?
• On what basis are property taxes assessed?
• A septic tank inspection report is valid for how long?
• What is the primary ethical duty of a broker in an agency relationship?
• What type of property allows unrelated individuals needing care, support, or supervision to live together while being protected from discrimination?
• A seller lists a property with a brokerage, sells it himself, and does not have to pay commission. What kind of listing did the seller sign?
• What does "letting" refer to in the context of real estate?
• A handicapped person is leasing a house that requires a modification. Which of the following is TRUE about the modifications?
• What is an example of a document that would indicate legal ownership of real estate?
• What is a primary purpose of a purchase agreement?
• What is the maximum security deposit allowed under the Arizona Landlord Tenant Act?
• In a purchase contract, what term should be used for a buyer who wishes to remain anonymous?
• What does the term "capital gains" refer to?
• Which of the following best describes a home warranty?
• What is the purpose of "staging" a home before sale?
• A contract has been signed, but title has not yet passed. The contract is?
• How often must a real estate license be renewed in Arizona?
• What characterizes a real estate investment trust (REIT)?
• If a tenant abandons a residential apartment, what action is NOT required of the landlord?
• Which of the following is NOT a participant in the secondary mortgage market?
• What is a leasehold estate?
• What does the Real Estate Settlement Procedures Act (RESPA) mandate?
• The state obtains the property of someone who dies intestate through which legal principle?
• When purchasing land interstate, how long does a buyer have to rescind under the Federal Interstate Land Full Disclosure Act?
• Which term refers to a legal agreement to repay borrowed money with interest?
• What is the name of the third party that will receive a life interest in a property upon the death of a measuring tenant?
• In Arizona, how long are real estate brokers required to retain transaction records?
• Which of the following is not a type of real estate lease?
• Once an option is exercised, it is classified as what type of contract?
• How is market value different from assessed value?
• For a deed to be valid in Arizona, who must sign it?
• 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? (Round your answer up to the nearest dollar)
• What must a tenant provide before undertaking repairs under the self-help provision?
• If an owner improves a property, a licensed contractor is required to be used in all of these situations EXCEPT if the property:
• What legal document conveys ownership of real property?
• What is required for the recording of an Affidavit of Affixture?
• Who pays earnest money in a real estate transaction?
• In the event of a contract dispute, which of the following takes precedence?
• What term describes the refusal of a lender to loan in certain minority neighborhoods?
• Which financial aspect is critical for a real estate investor assessing a property's income potential?
• What duty does a broker have towards a third party?
• What type of protection does title insurance provide?
• In Arizona, what is the required timeframe for landlords to restore or return a tenant’s security deposit?
• What is defined as an act of adapting property to meet specific legal and zoning requirements?
• What formation does Arizona law allow to finance infrastructure for a subdivision development?
• When a new home is still under construction, the County Assessor may?
• What is the primary benefit of a positive leasehold sublease for the sublessor?
• Which of the following describes a kickback in real estate?
• The right of an Arizona real estate licensee to prepare certain legal documents stems from which source?
• What is the function of the Arizona Real Estate Advisory Board?
• What is the purpose of an affidavit of value?
• What is the main objective of due diligence in real estate?
• Creditworthiness is essential for which aspect of real estate?
• What does a listing agreement signify in real estate?
• When a developer combines two or more adjacent parcels of land into one large development, it is known as:
• How do increasing cap rates in an area influence property value?
• How are estimated property taxes typically categorized on a title report?
• What is the main consequence of physical depreciation?
• What is "easement by necessity"?
• When a property that has a well is sold, what must be sent to ADWR?
• After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n)
• Which concept implies that information given to a client's agent is assumed to have been communicated to the client?
• Real estate broker commissions are generally based on what?
• A company that acts as an intermediary between a lender and an appraiser is a(n)
• To avoid additional fees to licensees, what must the real estate recovery fund maintain as of June 30th each year?
• What is the primary purpose of a home inspection in real estate transactions?
• In a sublease with a positive leasehold, who normally benefits from the excess rent?
• Under what circumstance can an owner of a single-family residence depreciate the property for tax purposes?
• How can a buyer ensure the return of earnest money if their loan does not get approved?
• How much will be paid out of the closing for the points in a $68,000 loan with 4 points?
• What is the appropriate action if a seller’s mortgage is paid off at closing?
• Which of the following best describes "real property"?
• What document clarifies the ADRE's position on laws and regulations?
• What organization receives most of the benefit of proceeds from the sale or lease of state trust land?
• Which type of listing would NOT be included in a multiple listing service?
• Which is regarded as the highest form of estate?
• What is the name of the federal rent subsidy program?
• A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise?
• At what point does recordation of a document occur?
• What impact can physical depreciation have on a property?
• What term describes a situation where unrelated people live together for care and are protected by fair housing laws?
• When a listing broker receives several offers at the same time, what should they do?
• What is the main purpose of the Arizona Department of Real Estate (ADRE)?
• What does fiduciary duty in real estate require from an agent?
• Two property managers are planning to set rental rates on their units to keep the rents high in the area. Which of the laws would have been violated?
• What is the primary role of a buyer's agent during negotiations?
• A right of way over Parcel A to Parcel B identifies Parcel B as the
• How many townships are in a 24 mile square?
• In Arizona, property acquired after marriage is considered which type of property?
• What zoning classification might prohibit commercial development?
• What distinguishes a "listing agent" from a "buyer's agent"?
• What does "subdivision" refer to in real estate development?
• What doctrine governs water usage in Arizona?
• If a party lives on a property without permission but gains title after a certain period, this is known as what?
• Who is considered the "beneficiary" in a deed of trust?
• Considering an investment property with an asking price of $670,000 and expenses of $1,500 a month, what would be the estimated value if the expected return is 8%?
• Mrs. Martin tears down her house on a corner lot to enhance land value. This illustrates which economic principle?
• Which of the following is true regarding the nature of a lease?
• What is the legal instrument used to convey title to real property?
• Which agency relationship is characterized by working exclusively for the seller?
• A person named in an insurance policy who will receive the insurance proceeds if the property is damaged is the:
• If a real estate sale closed on March 21 and the property had an assessed value of $72,500, what would be the seller's settlement statement entry if the buyer owns the day of closing?
• What is an essential function of a real estate broker regarding commissions?
• In which situation would a lender of a conventional loan require private mortgage insurance (PMI)?
• What is a comparative market analysis (CMA) used for?
• What is required for the termination of a tenancy at will?
• What type of mortgage requires the borrower to make minimum payments, with the remainder added to the loan balance?
• What is meant by property management?
• Which of these property qualifications is used for vacant land?
• Which of the following would be considered a grandfathered water right?
• How many days must a tenant give the owner to cure a minor defect before exercising self-help?
• What does the 1988 Amendment to the Federal Fair Housing Act prohibit discrimination based on?
• How is "creditworthiness" defined in real estate lending?
• What describes a short sale in real estate?
• What is the maximum time allowed for returning a security deposit to a tenant in Arizona?
• What are the legal consequences of "failure to disclose" material facts about a property?
• What type of surveying system is being described: Beginning at the SE corner of Tatum and Cactus, proceed 2,640 feet north, then 400 feet west, then 700 feet south, and back to the beginning?
• Which right grants a landowner the ability to extract minerals from their land?
• After a Deed of Trust Foreclosure sale, which of the following is TRUE?
• In a real estate context, what primarily defines a unilateral executed contract?
• When a property located within a homeowners association is listed for sale, who is responsible for supplying the relevant documents to the prospective buyer?
• Past due taxes would appear on a title report as which type of issue?
• How many days does the landlord have to provide a full accounting of the security deposit upon termination of tenancy?
• In what situation would a short sale be likely to occur?
• A 3.45-acre lot sells for 50 cents per square foot. What was the selling price?
• How is liquidation value defined in real estate?
• What does it mean when a property is under contract?
• The relationship between a broker and their salesperson is what type of agency?
• What principle is used to determine how many acres are in a section of land?
• Which is considered functional obsolescence?
• How is "interest" typically expressed in real estate financing?
• Which type of property listing allows the seller to retain the right to sell without paying a commission?
• What is the purpose of a comparative market analysis (CMA)?
• What does "zoning" in real estate primarily regulate?
• What is a "mortgage" in the context of real estate?
• What does physical depreciation in real estate appraisal refer to?
• What is an adjustable-rate mortgage (ARM)?
• How does a purchase agreement generally affect real estate transactions?
• What characterizes an open listing in real estate?
• What is the primary purpose of the Federal Housing Administration?
• What does "fair housing" legislation aim to prevent?
• A real estate mortgage can be classified as what type of lien?
• What document is recorded with the deed?
• What is a "real estate investment trust" (REIT)?
• A broker, acting as a property manager, would be what type of agent?
• Water rights for which Arizona rivers are being adjudicated in court?
• Which of the following is NOT considered real property?
• What is the primary function of a real estate appraisal?
• Real estate licensees should safeguard a client's or customer's personal information in order to prevent:
• In real estate transactions, what is the role of escrow?
• What does the "highest and best use" principle in real estate appraisal refer to?
• If a property lies within the boundaries of areas where water rights are being adjudicated, what must the owners do?