ASREB (Arizona School of Real Estate and Business)
Competency test preparation questions with approved
Answers 2025/2026
What is a loan called when it has even payments for the life of the loan? - correct
answer Amortized
Where would the exceptions and reservations appear on a title report? - correct
answer Schedule B
Which of the following is NOT necessary for a valid transfer of title to real estate? -
correct answer Recording of the deed
Which of the following is NOT synonymous with "title"? - correct answer Possession
What warrant indicates that the grantee is the owner of the property? - correct answer
Seizin
What document is recorded with the deed? - correct answer Affidavit of value
When a document is recorded, this notice is called: - correct answer Constructive
An interest in title to real property, not government owned, obtained by action at law
based on adverse possession best describes: - correct answer Prescription
What deed would place the least liability on the grantor? - correct answer Quit claim
What action would terminate a purchase contract? - correct answer Eminent domain
,What is the rescission time when a party purchases a timeshare? - correct answer 7
calendar days
A trustor lists his property for sale on May 1. On May 2 he was notified of default on the
trust deed, which default had occurred 45 days prior to notification. The trustor, under
these conditions: - correct answer May sell the property within the 90 day
reinstatement period
A subordination clause is most often used in a: - correct answer Trust deed
The capitalization method is used to: - correct answer Convert net income to market
value
What would NOT be provided for in a non-recourse loan? - correct answer Deficiency
judgment
After a mortgage is being foreclosed, if the sale amount was insufficient to cover the
debt, the lender may ask for a/an? - correct answer Deficiency judgment
In an agreement for sale, when does title convey? - correct answer Upon the last
payment
Who benefits from the assignment of rents clause? - correct answer Beneficiary
A wraparound loan would never be which of the following? - correct answer A first deed
of trust
A defeasance clause would apply to: - correct answer Deed of trust
You do not need to hold a real estate license to: - correct answer Act as a residential
leasing agent if you work at only one location during any given workday
,Before fixing a minor defect, a tenant must give the landlord how many days' notice to
repair the defect? - correct answer Ten
A salesperson earns $75,000 per year. If he receives 75% of the 7% commissions paid
to his firm on his sales, what is his monthly dollar volume of sales? - correct answer
$119,047
Property listed at $150,000 and sold for 10 % less. It is subsequently re-sold for 20%
more than original listing. What was the percentage of profit? - correct answer 33
percent
You borrow $14,400 at 9.25%. If the principal and interest are repaid in one payment at
the end of seven months, what is the total payment? - correct answer $15177
A third party named to receive the life estate upon the death of the original grantee of
the life interest is known as the: - correct answer Vested remainderman
Rank the order of liens highest to lowest. - correct answer Property taxes,
assessments, mortgage lien, IRS
A conveyance of title "upon the condition that the land shall not be used for the sale of
intoxicating beverages or liquors", which does not automatically terminate creates: -
correct answer A conditional estate
What type of legal description is based on a baseline and principal meridian? - correct
answer Rectangular survey system
When the law allows for tacking this would refer to which of the following easements? -
correct answer Prescription
Title to personalty is conveyed by means of a document called: - correct answer Bill of
sale
, Jones sells his property to Smith but Jones stays on the land. Jones holds: - correct
answer An estate at sufferance
Buyer purchases property and receives a warranty deed. What would not transfer with
the deed? - correct answer Annual crops
In appraisal terminology, how would you judge the quotation "A factory too close to a
home is"? - correct answer Incurable economic obsolescence
What is market value? - correct answer The price the property is likely to bring in an
"arm's length" transaction
Which of the following would be the best technique for an appraiser to use on a single
family residence that is new? - correct answer The cost method is a valid approach
which is the most effective on newer properties
By definition what does an appraiser give in the course of his work? - correct answer
An estimate
A listing agreement is a mutual agreement between a broker and a principal and is
considered: - correct answer An authorization to sell
All of the following would apply to a buyer broker exclusive employment agreement
EXCEPT: - correct answer Legal description of the property
The owner of a two-family residence lists the property with New Age Realty. Two weeks
later, an offer comes in from a financially qualified woman with two children. Living in
one of the units, the owner decides to reject her offer. Which law has been violated? -
correct answer The Federal Fair Housing Act
In some states, the common-law legal rights which a wife has in property owned by her
husband during their marriage are best known as: - correct answer Dower
Competency test preparation questions with approved
Answers 2025/2026
What is a loan called when it has even payments for the life of the loan? - correct
answer Amortized
Where would the exceptions and reservations appear on a title report? - correct
answer Schedule B
Which of the following is NOT necessary for a valid transfer of title to real estate? -
correct answer Recording of the deed
Which of the following is NOT synonymous with "title"? - correct answer Possession
What warrant indicates that the grantee is the owner of the property? - correct answer
Seizin
What document is recorded with the deed? - correct answer Affidavit of value
When a document is recorded, this notice is called: - correct answer Constructive
An interest in title to real property, not government owned, obtained by action at law
based on adverse possession best describes: - correct answer Prescription
What deed would place the least liability on the grantor? - correct answer Quit claim
What action would terminate a purchase contract? - correct answer Eminent domain
,What is the rescission time when a party purchases a timeshare? - correct answer 7
calendar days
A trustor lists his property for sale on May 1. On May 2 he was notified of default on the
trust deed, which default had occurred 45 days prior to notification. The trustor, under
these conditions: - correct answer May sell the property within the 90 day
reinstatement period
A subordination clause is most often used in a: - correct answer Trust deed
The capitalization method is used to: - correct answer Convert net income to market
value
What would NOT be provided for in a non-recourse loan? - correct answer Deficiency
judgment
After a mortgage is being foreclosed, if the sale amount was insufficient to cover the
debt, the lender may ask for a/an? - correct answer Deficiency judgment
In an agreement for sale, when does title convey? - correct answer Upon the last
payment
Who benefits from the assignment of rents clause? - correct answer Beneficiary
A wraparound loan would never be which of the following? - correct answer A first deed
of trust
A defeasance clause would apply to: - correct answer Deed of trust
You do not need to hold a real estate license to: - correct answer Act as a residential
leasing agent if you work at only one location during any given workday
,Before fixing a minor defect, a tenant must give the landlord how many days' notice to
repair the defect? - correct answer Ten
A salesperson earns $75,000 per year. If he receives 75% of the 7% commissions paid
to his firm on his sales, what is his monthly dollar volume of sales? - correct answer
$119,047
Property listed at $150,000 and sold for 10 % less. It is subsequently re-sold for 20%
more than original listing. What was the percentage of profit? - correct answer 33
percent
You borrow $14,400 at 9.25%. If the principal and interest are repaid in one payment at
the end of seven months, what is the total payment? - correct answer $15177
A third party named to receive the life estate upon the death of the original grantee of
the life interest is known as the: - correct answer Vested remainderman
Rank the order of liens highest to lowest. - correct answer Property taxes,
assessments, mortgage lien, IRS
A conveyance of title "upon the condition that the land shall not be used for the sale of
intoxicating beverages or liquors", which does not automatically terminate creates: -
correct answer A conditional estate
What type of legal description is based on a baseline and principal meridian? - correct
answer Rectangular survey system
When the law allows for tacking this would refer to which of the following easements? -
correct answer Prescription
Title to personalty is conveyed by means of a document called: - correct answer Bill of
sale
, Jones sells his property to Smith but Jones stays on the land. Jones holds: - correct
answer An estate at sufferance
Buyer purchases property and receives a warranty deed. What would not transfer with
the deed? - correct answer Annual crops
In appraisal terminology, how would you judge the quotation "A factory too close to a
home is"? - correct answer Incurable economic obsolescence
What is market value? - correct answer The price the property is likely to bring in an
"arm's length" transaction
Which of the following would be the best technique for an appraiser to use on a single
family residence that is new? - correct answer The cost method is a valid approach
which is the most effective on newer properties
By definition what does an appraiser give in the course of his work? - correct answer
An estimate
A listing agreement is a mutual agreement between a broker and a principal and is
considered: - correct answer An authorization to sell
All of the following would apply to a buyer broker exclusive employment agreement
EXCEPT: - correct answer Legal description of the property
The owner of a two-family residence lists the property with New Age Realty. Two weeks
later, an offer comes in from a financially qualified woman with two children. Living in
one of the units, the owner decides to reject her offer. Which law has been violated? -
correct answer The Federal Fair Housing Act
In some states, the common-law legal rights which a wife has in property owned by her
husband during their marriage are best known as: - correct answer Dower
