ASREB (Arizona School of Real Estate and Business)
Salesperson Test Exam Toolkit Questions and Verified
solution 2025/2026
Amortized mortgage - correct answer In an amortized mortgage, the monthly payment
is the same each month. The part used to pay the principal increases each month, while
the amount going toward interest decreases.
Estate at sufferance - correct answer When tenants stay after they no longer have the
right to possess the property, it's called estate at sufferance because the landlord is
suffering the tenant's presence without express agreement.
Land installment contract - correct answer In a land installment contract, the seller
holds the deed to the property until the buyer pays the purchase price in full.
Clear title - correct answer A clear title is a form of marketable title against which there
are no liens or encumbrances and that has an unbroken chain of ownership.
Prepaid items - correct answer Prepaid items, such as prepaid taxes, are a seller
credit and buyer debit.
Ownership arrangement for condominiums - correct answer Buyers can purchase
condominiums in severalty, in joint tenancy, in tenants in common, or tenants by the
entirety.
Compensation disclosure - correct answer The broker must disclose to all the parties
in a transaction, in writing before closing, the name of each employing broker who
represents a party to the transaction, and who will receive compensation from the
transaction.
Jake's situation - correct answer Jake has an estate at sufferance because he retained
possession even after his right to possess had terminated.
,Real estate asset managers - correct answer Real estate asset managers work for a
team of investors and focus on long-term financial planning.
Monthly payment structure - correct answer Over time, the portion of the monthly
payment used to repay principal increases as the portion used to pay interest
decreases.
Typical prepaid item - correct answer A typical prepaid item that goes into a seller's
credit column and a buyer's debit column on a closing statement is property taxes.
Broker's written disclosure timing - correct answer Hannah needs to provide the
compensation disclosure before closing.
Deed retention - correct answer The seller retains the deed until the buyer pays the
agreed-upon sales price in full.
Unbroken chain of ownership - correct answer A clear title means the title has an
unbroken chain of ownership and no liens or encumbrances.
Holdover tenant - correct answer Jake is now a holdover tenant.
Interest payment dynamics - correct answer The amount going toward interest
decreases while the part used to pay the principal increases each month.
Tenants in common - correct answer Buyers can purchase condominiums in tenants in
common ownership arrangement.
Joint tenancy - correct answer Buyers can purchase condominiums in joint tenancy
ownership arrangement.
Tenants by the entirety - correct answer Buyers can purchase condominiums in
tenants by the entirety ownership arrangement.
,Salary of real estate asset managers - correct answer Real estate asset managers
don't live on-site but manage an entire building.
Senior housing specialization - correct answer Some real estate asset managers
specialize in senior housing.
CAGRD - correct answer Central Arizona Groundwater Replenishment District.
Property Transfer Requirements - correct answer Meg must sign the deed and have
her signature acknowledged.
Grantee Requirements - correct answer As the grantee, Christian doesn't have to sign
the deed, and he doesn't have to be legally competent or of legal age.
Tenancy by the Entirety - correct answer If Garnett dies, the entire property then
belongs to Kennedy and he's the apartment's sole owner.
Statutory Year - correct answer A statutory year is 360 days.
Proration Basis - correct answer When calculating prorations, one of the first questions
to ask is whether the proration is based on a statutory year (360 days) or a calendar
year (365 days).
Market Strategy - correct answer The market is cold.
Ground Lease - correct answer A ground lease is a situation where the ground is
owned by one entity and someone else leases the ground so they can build something.
Condominium Ownership - correct answer Condominium ownership is ownership of
real property, not personal property.
, Judgment Evidence - correct answer A judgment that results in a payment from the
recovery fund counts as evidence of a violation.
Stabilized Budget - correct answer You can create a stabilized budget by carefully
forecasting the income and expenses that you can reasonably expect to bring in and
pay out over a short term, like five years.
Community Property Rights - correct answer All property purchased before the
marriage and owned individually must be sold. The profits are divided equally between
the partners.
Properties purchased before marriage - correct answer Can continue to be owned in
severalty.
Total street frontage calculation - correct answer Add up the square footages of the
three lots and divide by the lot depth (275) to get the total street frontage.
Lot A size - correct answer 35,750 s.f.
Lot B size - correct answer 53,900 s.f.
Lot C size - correct answer 33,000 s.f.
Total street frontage for three lots - correct answer 446 feet.
Minimum real estate licensure to sell own home - correct answer None.
Real estate license necessity - correct answer A license is only necessary if performing
real estate activities for others for compensation.
Salesperson Test Exam Toolkit Questions and Verified
solution 2025/2026
Amortized mortgage - correct answer In an amortized mortgage, the monthly payment
is the same each month. The part used to pay the principal increases each month, while
the amount going toward interest decreases.
Estate at sufferance - correct answer When tenants stay after they no longer have the
right to possess the property, it's called estate at sufferance because the landlord is
suffering the tenant's presence without express agreement.
Land installment contract - correct answer In a land installment contract, the seller
holds the deed to the property until the buyer pays the purchase price in full.
Clear title - correct answer A clear title is a form of marketable title against which there
are no liens or encumbrances and that has an unbroken chain of ownership.
Prepaid items - correct answer Prepaid items, such as prepaid taxes, are a seller
credit and buyer debit.
Ownership arrangement for condominiums - correct answer Buyers can purchase
condominiums in severalty, in joint tenancy, in tenants in common, or tenants by the
entirety.
Compensation disclosure - correct answer The broker must disclose to all the parties
in a transaction, in writing before closing, the name of each employing broker who
represents a party to the transaction, and who will receive compensation from the
transaction.
Jake's situation - correct answer Jake has an estate at sufferance because he retained
possession even after his right to possess had terminated.
,Real estate asset managers - correct answer Real estate asset managers work for a
team of investors and focus on long-term financial planning.
Monthly payment structure - correct answer Over time, the portion of the monthly
payment used to repay principal increases as the portion used to pay interest
decreases.
Typical prepaid item - correct answer A typical prepaid item that goes into a seller's
credit column and a buyer's debit column on a closing statement is property taxes.
Broker's written disclosure timing - correct answer Hannah needs to provide the
compensation disclosure before closing.
Deed retention - correct answer The seller retains the deed until the buyer pays the
agreed-upon sales price in full.
Unbroken chain of ownership - correct answer A clear title means the title has an
unbroken chain of ownership and no liens or encumbrances.
Holdover tenant - correct answer Jake is now a holdover tenant.
Interest payment dynamics - correct answer The amount going toward interest
decreases while the part used to pay the principal increases each month.
Tenants in common - correct answer Buyers can purchase condominiums in tenants in
common ownership arrangement.
Joint tenancy - correct answer Buyers can purchase condominiums in joint tenancy
ownership arrangement.
Tenants by the entirety - correct answer Buyers can purchase condominiums in
tenants by the entirety ownership arrangement.
,Salary of real estate asset managers - correct answer Real estate asset managers
don't live on-site but manage an entire building.
Senior housing specialization - correct answer Some real estate asset managers
specialize in senior housing.
CAGRD - correct answer Central Arizona Groundwater Replenishment District.
Property Transfer Requirements - correct answer Meg must sign the deed and have
her signature acknowledged.
Grantee Requirements - correct answer As the grantee, Christian doesn't have to sign
the deed, and he doesn't have to be legally competent or of legal age.
Tenancy by the Entirety - correct answer If Garnett dies, the entire property then
belongs to Kennedy and he's the apartment's sole owner.
Statutory Year - correct answer A statutory year is 360 days.
Proration Basis - correct answer When calculating prorations, one of the first questions
to ask is whether the proration is based on a statutory year (360 days) or a calendar
year (365 days).
Market Strategy - correct answer The market is cold.
Ground Lease - correct answer A ground lease is a situation where the ground is
owned by one entity and someone else leases the ground so they can build something.
Condominium Ownership - correct answer Condominium ownership is ownership of
real property, not personal property.
, Judgment Evidence - correct answer A judgment that results in a payment from the
recovery fund counts as evidence of a violation.
Stabilized Budget - correct answer You can create a stabilized budget by carefully
forecasting the income and expenses that you can reasonably expect to bring in and
pay out over a short term, like five years.
Community Property Rights - correct answer All property purchased before the
marriage and owned individually must be sold. The profits are divided equally between
the partners.
Properties purchased before marriage - correct answer Can continue to be owned in
severalty.
Total street frontage calculation - correct answer Add up the square footages of the
three lots and divide by the lot depth (275) to get the total street frontage.
Lot A size - correct answer 35,750 s.f.
Lot B size - correct answer 53,900 s.f.
Lot C size - correct answer 33,000 s.f.
Total street frontage for three lots - correct answer 446 feet.
Minimum real estate licensure to sell own home - correct answer None.
Real estate license necessity - correct answer A license is only necessary if performing
real estate activities for others for compensation.
