ASREB (Arizona School of Real Estate and Business)
Midterm Review | Actual Questions & Correct Answers |
Graded A+ 2025/2026
Which is a stigmatized property - correct answer Undesirable reputation
Who is responsible for the accuracy of a closing? - correct answer Escrow agent/title
company
Who is responsible for the earnest money until the offer is accepted? - correct answer
Broker
Once an offer is accepted, what rights does the buyer have in the property? - correct
answer Equitable Title
What is the purpose of the SPDS? - correct answer Provides information essential to
the condition of the property
What is required to be in a listing agreement? - correct answer Street Address
The document that is used to indicate that a deed of trust has been paid off is known as
a : - correct answer Deed of Reconveyance
One of the appurtenances to a parcel of land would be a/an: - correct answer bundle of
rights
Where would the exceptions and reservations appear on a title report - correct answer
Schedule B reflects exceptions and reservations.
A buyer executes a chattel mortgage in favor of a lender. What type of property would
be covered by a chattel mortgage? - correct answer Office Furniture and Equipment
,What would not apply to community property with right of survivorship? - correct
answer Willing to a third party
A parcel of land that separates two other parcels (i.e. a parcel between a residential and
commercial strip of land) is called a/an: - correct answer Buffer Zone
A valid exercise of the government's police power to restrict an owner's use and
enjoyment of his property would include which of the following - correct answer
Building Codes
The term dedication refers to - correct answer Transfer of real property from a private
owner to a public agency
Which of the following would be considered a security - correct answer Single family
homes in an investment pool
Which of the following describes the term appreciation? - correct answer An increase
in the value of property
When ownership of a mortgage is transferred from one company or individual to
another, it is called - correct answer An assignment
A mortgage loan which requires the remaining balance be paid at a specific point in time
is called - correct answer A Balloon Mortgage
A title which is free of liens or legal questions as to ownership of the property is called a
__________ title.
A. good
B. cloudy
C. clear
D. free - correct answer C) Clear
,What is the collateral in a home loan? - correct answer The property itself
The adjustment date on an adjustable rate mortgage is - correct answer The date the
interest rate changes
What is the deposit made by a potential buyer to show he is serious about buying a
house called? - correct answer Earnest money deposit
a right of way which gives persons other than the owner access to or over a property is
known as - correct answer An easement
Which best describes a Subdivision - correct answer A housing development created
by dividing a tract of land into individual lots
When someone contributes to the construction or rehabilitation of a property with labor
or services rather than cash, that contribution is called - correct answer Sweat Equity
A Two step mortgage is defined as - correct answer An adjustable rate mortgage with
one interest rate for the first five or seven years and a different rate for the remainder of
the term
A legal document evidencing a person's right to or ownership of a property is called -
correct answer Title
An oral or written agreement that is binding in a court of law is called - correct answer
Contract
A female named in a will to administer an estate is called an - correct answer Executrix
The greatest possible interest a person can have in real estate is called - correct
answer Fee Simple
, Required for properties located in federally designated flood areas, this type of
insurance compensates for physical property damage resulting from flooding. It is called
- correct answer Flood Insurance
Mortgages that are not government loans are called - correct answer Conventional
loans
A liquid asset is - correct answer A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is - correct answer The
mortgagee
If you are buying a house and asking the Seller to provide all or part of the financing,
you are asking for - correct answer Owner Financing
A point is - correct answer A point is 1% of the amount of the mortgage
What does a power of attorney grant someone? - correct answer complete or limited
authority on behalf of someone else
When does an assumption take place? - correct answer When the buyer assumes the
seller's mortgage
The term servicing describes - correct answer The collection of mortgage payments
from borrowers and duties of a loan servicer
An exclusive listing is one which gives a licensed real estate agent the exclusive right to
sell a property - correct answer for a specified period of time
If a veteran is eligible for a VA loan, he or she would receive a document from the VA
called - correct answer Certificate of Eligibility
Midterm Review | Actual Questions & Correct Answers |
Graded A+ 2025/2026
Which is a stigmatized property - correct answer Undesirable reputation
Who is responsible for the accuracy of a closing? - correct answer Escrow agent/title
company
Who is responsible for the earnest money until the offer is accepted? - correct answer
Broker
Once an offer is accepted, what rights does the buyer have in the property? - correct
answer Equitable Title
What is the purpose of the SPDS? - correct answer Provides information essential to
the condition of the property
What is required to be in a listing agreement? - correct answer Street Address
The document that is used to indicate that a deed of trust has been paid off is known as
a : - correct answer Deed of Reconveyance
One of the appurtenances to a parcel of land would be a/an: - correct answer bundle of
rights
Where would the exceptions and reservations appear on a title report - correct answer
Schedule B reflects exceptions and reservations.
A buyer executes a chattel mortgage in favor of a lender. What type of property would
be covered by a chattel mortgage? - correct answer Office Furniture and Equipment
,What would not apply to community property with right of survivorship? - correct
answer Willing to a third party
A parcel of land that separates two other parcels (i.e. a parcel between a residential and
commercial strip of land) is called a/an: - correct answer Buffer Zone
A valid exercise of the government's police power to restrict an owner's use and
enjoyment of his property would include which of the following - correct answer
Building Codes
The term dedication refers to - correct answer Transfer of real property from a private
owner to a public agency
Which of the following would be considered a security - correct answer Single family
homes in an investment pool
Which of the following describes the term appreciation? - correct answer An increase
in the value of property
When ownership of a mortgage is transferred from one company or individual to
another, it is called - correct answer An assignment
A mortgage loan which requires the remaining balance be paid at a specific point in time
is called - correct answer A Balloon Mortgage
A title which is free of liens or legal questions as to ownership of the property is called a
__________ title.
A. good
B. cloudy
C. clear
D. free - correct answer C) Clear
,What is the collateral in a home loan? - correct answer The property itself
The adjustment date on an adjustable rate mortgage is - correct answer The date the
interest rate changes
What is the deposit made by a potential buyer to show he is serious about buying a
house called? - correct answer Earnest money deposit
a right of way which gives persons other than the owner access to or over a property is
known as - correct answer An easement
Which best describes a Subdivision - correct answer A housing development created
by dividing a tract of land into individual lots
When someone contributes to the construction or rehabilitation of a property with labor
or services rather than cash, that contribution is called - correct answer Sweat Equity
A Two step mortgage is defined as - correct answer An adjustable rate mortgage with
one interest rate for the first five or seven years and a different rate for the remainder of
the term
A legal document evidencing a person's right to or ownership of a property is called -
correct answer Title
An oral or written agreement that is binding in a court of law is called - correct answer
Contract
A female named in a will to administer an estate is called an - correct answer Executrix
The greatest possible interest a person can have in real estate is called - correct
answer Fee Simple
, Required for properties located in federally designated flood areas, this type of
insurance compensates for physical property damage resulting from flooding. It is called
- correct answer Flood Insurance
Mortgages that are not government loans are called - correct answer Conventional
loans
A liquid asset is - correct answer A cash asset or an asset easily turned into cash
Another term for the lender in a mortgage agreement is - correct answer The
mortgagee
If you are buying a house and asking the Seller to provide all or part of the financing,
you are asking for - correct answer Owner Financing
A point is - correct answer A point is 1% of the amount of the mortgage
What does a power of attorney grant someone? - correct answer complete or limited
authority on behalf of someone else
When does an assumption take place? - correct answer When the buyer assumes the
seller's mortgage
The term servicing describes - correct answer The collection of mortgage payments
from borrowers and duties of a loan servicer
An exclusive listing is one which gives a licensed real estate agent the exclusive right to
sell a property - correct answer for a specified period of time
If a veteran is eligible for a VA loan, he or she would receive a document from the VA
called - correct answer Certificate of Eligibility
