ASREB (Arizona School of Real Estate and Business)
Competency test preparation questions with approved
Answers 2025/2026
What is an appropriate strategy when working with a prosepctive short sale seller? -
correct answer Bring a list of documents the lender will need.
An easement is one type of encumbrance that can affect a property. What does it
require from the owner? - correct answer Their express permission
Who hold the promissory note when a deed of trust is used as a security instrument? -
correct answer The lender.
To_______ his lien, Walt must meet all the requirements of holding and enforcing that
lien. - correct answer Perfect
A ________ is advisory in nature, intended to encourage a licensee to modify or
eliminate certain practices in order to avoid future disciplinary action. It stays in a
licensee's record for future consideration. - correct answer Letter of concern
Kali signed a lease in which an appraisal is performed every three years, and the rent is
then adjusted according to percentage of the prior rent. What type of lease is this? -
correct answer Reappraisal lease
An arizona licensee's license was terminated last year because she was the licensee
named in a claim paid from the real estate fund. She has repaid the fund, putting herself
back in good standing with ADRE. Her license period has not expired. She will apply for
license resinstatement by
a. New application
b. Original application
c. Re application
d. Renewal - correct answer original application
, A branch manager for a new office, what can a broker do in this role that a licensee
cannot? - correct answer Hire and fire affiliated licensees
Jacob is broker who purchased 78 acres of land and had it sub divided into half-acre
lots. He decided to install sewer and underground electric for the entire subdivision,
because he thinks he will easily recoup his initial infrastructure investment. This is an
example of which economic characteristic of real property?
a. area preference
b. improvements
c. permanence
d. Scarcity - correct answer Permanence
How large is a section used in the rectangular government survey system?
a. 640 acres
b. 640 miles
c. 640 sq ft
d. one acre - correct answer 640 miles
A foreign investor is getting ready to sell their condo. What percentage of withholding of
the sales price will FIRPTA require? - correct answer 15%
What does the metes and bounds system use to develop a property's legal description?
- correct answer compass headings and directions
If an Arizona salesperson's license expires, can she still collect compensation? -
correct answer Yes, as long as the compensation were earned legitimately while her
license was active, it can be collected after the license expires.
When a land description mentions that the plat of her property is recorded in map book
12, page 14 at the county courthouse. What type of legal description is this? - correct
answer Lot and block
Competency test preparation questions with approved
Answers 2025/2026
What is an appropriate strategy when working with a prosepctive short sale seller? -
correct answer Bring a list of documents the lender will need.
An easement is one type of encumbrance that can affect a property. What does it
require from the owner? - correct answer Their express permission
Who hold the promissory note when a deed of trust is used as a security instrument? -
correct answer The lender.
To_______ his lien, Walt must meet all the requirements of holding and enforcing that
lien. - correct answer Perfect
A ________ is advisory in nature, intended to encourage a licensee to modify or
eliminate certain practices in order to avoid future disciplinary action. It stays in a
licensee's record for future consideration. - correct answer Letter of concern
Kali signed a lease in which an appraisal is performed every three years, and the rent is
then adjusted according to percentage of the prior rent. What type of lease is this? -
correct answer Reappraisal lease
An arizona licensee's license was terminated last year because she was the licensee
named in a claim paid from the real estate fund. She has repaid the fund, putting herself
back in good standing with ADRE. Her license period has not expired. She will apply for
license resinstatement by
a. New application
b. Original application
c. Re application
d. Renewal - correct answer original application
, A branch manager for a new office, what can a broker do in this role that a licensee
cannot? - correct answer Hire and fire affiliated licensees
Jacob is broker who purchased 78 acres of land and had it sub divided into half-acre
lots. He decided to install sewer and underground electric for the entire subdivision,
because he thinks he will easily recoup his initial infrastructure investment. This is an
example of which economic characteristic of real property?
a. area preference
b. improvements
c. permanence
d. Scarcity - correct answer Permanence
How large is a section used in the rectangular government survey system?
a. 640 acres
b. 640 miles
c. 640 sq ft
d. one acre - correct answer 640 miles
A foreign investor is getting ready to sell their condo. What percentage of withholding of
the sales price will FIRPTA require? - correct answer 15%
What does the metes and bounds system use to develop a property's legal description?
- correct answer compass headings and directions
If an Arizona salesperson's license expires, can she still collect compensation? -
correct answer Yes, as long as the compensation were earned legitimately while her
license was active, it can be collected after the license expires.
When a land description mentions that the plat of her property is recorded in map book
12, page 14 at the county courthouse. What type of legal description is this? - correct
answer Lot and block
