ASREB (Arizona School of Real Estate and Business) Exam
sample prep Questions and Answers; certified for accuracy
2025/2026
The cost of doing direct mail advertising depends on all of these things except which?
a. The amount you have to pay the states Real Estate Commission for approval
b. The frequency of the mailings
c. Percent of people that reply
d. The date of mailing - correct answer B. The frequency of the mailings
Which statement about a deed in lieu of foreclosure is FALSE?
a. It gives the borrower an opportunity to change the loan terms
b. The borrowers' credit is hurt less than in a formal foreclosure
c. Avoids public notice of foreclosure
d. There is less risk to the lender that the borrower will damage the property in revenge
for the loss of the property - correct answer a. It gives the borrower an opportunity to
change the loan terms
Broker Jack has an agreement with seller Mauve that says Jack will receive
compensation if anyone except Mauve sells Mauve's home. This is an example of
____?
a. Enclave agency
b. Exclusive agency
c. Net agency
d. Exclusive right to sell - correct answer B. Exclusive agency
Broker Torrey hires salesperson Wes as an independent contractor. As an independent
contractor, Wes can expect which of the following from Broker Torrey?
a. Company laptop
b. Performance expectations
,c. Paid time off
d. Healthcare policy - correct answer B . Performance expectations
Which of the following best describes the principle of conformity?
a. The value of a home increases when the supply is short
b. A home maintains its highest value by being in a neighborhood with similar-type
housing
c. A property will decrease in value if there are rumors of a zoning challenge
d. Value wise, it is best for a neighborhood to have a little demographic diversity -
correct answer B. A home maintains its highest value by being in a neighborhood with
similar type housing
Why is the condition of bearing walls more important than non-bearing walls?
a. Bearing walls protect the hole from the outdoor elements and radon gas
b. Bearing walls are part of the interior framework of the house
c. Bearing walls support the ceiling and roof
d. Bearing walls are much weaker than non - correct answer C. Bearing walls support
the ceiling and roof
Owner Tom decided to lease out his basement to a college student. By leasing the
basement, Tom has ____?
a. Exercised one of his police powers
b. Permanently transferred his subsurface rights
c. Transferred a portion of his bundle of rights
d. Encroached his bundle of rights - correct answer C. Transferred a portion of his
bundle of rights
Which of these listing agreement statements is FALSE?
a. The listing price is listed on the listing agreement
b. The seller can change the listing agreement whenever they want
, c. A listing agreement can be modified, but only if all parties agree in writing
d. Contract law applies to listing agreements - correct answer B. The seller can change
the listing whenever they want (**They can NOT do this)
Which of the following is a valuable skill for a property manager to have?
a. Knowledge of building systems
b. Knowledge of how to steer tenants into specific buildings
c. Knowledge of appraisal
d. Knowledge of mortgage disclosure - correct answer A. Knowledge of building
systems
A tenant who stays in rented property after the lease has expired without the consent of
the landlord is said to have ____?
a. A tenant at request
b. A freeload tenant
c. A tenant in sufferance
d. An encroaching tenant - correct answer C. A tenant in sufferance
What is a forecast of income and expenses that can be protected over 5 years?
a. Cash flow statement
b. Stabilized budget
c. Balance sheet
d. Capital budget - correct answer B. Stabilized budget
If a cooperative corporation cannot pay its bills, what would happen?
a. Only the residents who have not paid their rents on time can be affected
b. HUD will bail out the struggling coop
c. The corporation owning the property would be dissolved, and all of the residents
could lose their interest in the cooperative
sample prep Questions and Answers; certified for accuracy
2025/2026
The cost of doing direct mail advertising depends on all of these things except which?
a. The amount you have to pay the states Real Estate Commission for approval
b. The frequency of the mailings
c. Percent of people that reply
d. The date of mailing - correct answer B. The frequency of the mailings
Which statement about a deed in lieu of foreclosure is FALSE?
a. It gives the borrower an opportunity to change the loan terms
b. The borrowers' credit is hurt less than in a formal foreclosure
c. Avoids public notice of foreclosure
d. There is less risk to the lender that the borrower will damage the property in revenge
for the loss of the property - correct answer a. It gives the borrower an opportunity to
change the loan terms
Broker Jack has an agreement with seller Mauve that says Jack will receive
compensation if anyone except Mauve sells Mauve's home. This is an example of
____?
a. Enclave agency
b. Exclusive agency
c. Net agency
d. Exclusive right to sell - correct answer B. Exclusive agency
Broker Torrey hires salesperson Wes as an independent contractor. As an independent
contractor, Wes can expect which of the following from Broker Torrey?
a. Company laptop
b. Performance expectations
,c. Paid time off
d. Healthcare policy - correct answer B . Performance expectations
Which of the following best describes the principle of conformity?
a. The value of a home increases when the supply is short
b. A home maintains its highest value by being in a neighborhood with similar-type
housing
c. A property will decrease in value if there are rumors of a zoning challenge
d. Value wise, it is best for a neighborhood to have a little demographic diversity -
correct answer B. A home maintains its highest value by being in a neighborhood with
similar type housing
Why is the condition of bearing walls more important than non-bearing walls?
a. Bearing walls protect the hole from the outdoor elements and radon gas
b. Bearing walls are part of the interior framework of the house
c. Bearing walls support the ceiling and roof
d. Bearing walls are much weaker than non - correct answer C. Bearing walls support
the ceiling and roof
Owner Tom decided to lease out his basement to a college student. By leasing the
basement, Tom has ____?
a. Exercised one of his police powers
b. Permanently transferred his subsurface rights
c. Transferred a portion of his bundle of rights
d. Encroached his bundle of rights - correct answer C. Transferred a portion of his
bundle of rights
Which of these listing agreement statements is FALSE?
a. The listing price is listed on the listing agreement
b. The seller can change the listing agreement whenever they want
, c. A listing agreement can be modified, but only if all parties agree in writing
d. Contract law applies to listing agreements - correct answer B. The seller can change
the listing whenever they want (**They can NOT do this)
Which of the following is a valuable skill for a property manager to have?
a. Knowledge of building systems
b. Knowledge of how to steer tenants into specific buildings
c. Knowledge of appraisal
d. Knowledge of mortgage disclosure - correct answer A. Knowledge of building
systems
A tenant who stays in rented property after the lease has expired without the consent of
the landlord is said to have ____?
a. A tenant at request
b. A freeload tenant
c. A tenant in sufferance
d. An encroaching tenant - correct answer C. A tenant in sufferance
What is a forecast of income and expenses that can be protected over 5 years?
a. Cash flow statement
b. Stabilized budget
c. Balance sheet
d. Capital budget - correct answer B. Stabilized budget
If a cooperative corporation cannot pay its bills, what would happen?
a. Only the residents who have not paid their rents on time can be affected
b. HUD will bail out the struggling coop
c. The corporation owning the property would be dissolved, and all of the residents
could lose their interest in the cooperative
