ASREB (Arizona School of Real Estate and Business) | Essential
Exam Blueprint Q&A: Core Concepts with Explained Solutions
2025/2026
Deficiency Judgment - correct answer A deficiency judgment is an unsecured money
judgment against a borrower whose mortgage foreclosure sale did not produce
sufficient funds to pay the underlying promissory note, or loan, in full.
non-recourse loan - correct answer a loan that limits the lender's repayment options to
the assets of the business and the collateral at risk
Recourse Loan - correct answer a loan that allows the lender to seek repayment from
the borrower's personal assets
At what point does recordation take place? - correct answer The document is recorded
at the close of escrow and priority of the lien is established by the docket and page
number.
Any broker or salesperson who initiates a suit to recover a commission for performing a
regulated real estate activity must first be able to prove that he/she was properly _____
at the time the claim arose. - correct answer According to A.R.S. 32-2152 (A): to
commence an action to recover a commission, the broker or salesperson must prove
that he/she was properly licensed at the time the claim arose.
Before placing or erecting a sign giving notice that specific property is being offered for
sale, lease, rent or exchange, a licensee shall secure: - correct answer According to
Commissioner's Rule R4-28-502 (I): before placing or erecting a sign giving notice that
specific property is being offered for sale, lease, rent, or exchange, a salesperson or
broker shall secure the written consent of the property owner, and the sign shall be
promptly removed upon request of the property owner.
A licensee owes a fiduciary duty to the client that includes protecting and promoting the
client's interests. If the client is the seller or lessor and may be unable to perform, the
licensee: - correct answer According to Commissioner's Rule R4-28-1101 (B1): a
licensee participating in a real estate transaction shall disclose in writing to all other
parties any information which the licensee possesses that materially and adversely
,affects the consideration to be paid by any party to the transaction, including any
information that the seller or lessor may be unable to perform.
Cumulative Zoning - correct answer is a method of zoning in which any use permitted
in a higher-use, less intensive zone is permissible in a lower use, more intensive zone.
For example: under this method, a house could be built in an industrial zone but a
factory could not be built in a residential zone.
When zoning is cumulative this means that: - correct answer In an R-3 area, R-1 and
R-2 uses are permitted
Ernest Money - correct answer it shows buyers sincere intention (putting skin in the
game), and serves as liquidated damages thus protecting seller if buyer breaches. Note
that earnest money is not required but does bolster an offer.
The broker is required by Arizona law to reconcile his or her trust account - correct
answer Bank reconciliation and client ledger is balanced monthly.
Which of the following cannot be a trustee? - correct answer CPA
CPA - correct answer certified public accountant
A married couple bought property together. No other information is given, what type of
tenancy do they have? - correct answer A married couple would take title as
community property unless they both requested survivorship.
Which applies to Tenancy in common - correct answer All other co-ownership
tenancies have an "equal undivided shares". Tenancy in common has "fractional shares
or interests" which can be unequal.
Four widowers decided to buy a home and live together. They took title in equal shares,
but agreed that as each of them died, his share would pass to the remainder of the
, group until only one was left who would then own the entire property. The men took title
to the home as: - correct answer Joint Tenants
What must be recorded to be valid? - correct answer Beneficiary Deed
The homestead exemption protects which of the following? - correct answer Protects
the equity in your primary residence. (up to $150k)
What is it called if a property is sold and the seller remains on the land without
permission? - correct answer Tenancy at sufferance
An easement cannot be extinguished by - correct answer This is a decision of the
property owner (servient tenement).
Which best describes prior appropriation? - correct answer First in time, First in right.
The oldest permit holder has the legal right to first use of the water.
What is the only navigable waterway in Arizona? - correct answer CO River
When a person has the right to use the water adjacent to his land, this is referred to as:
- correct answer Riparian
Which is not considered a fractional section? - correct answer section 32 is a standard
section
The smallest area to survey would be: - correct answer Lot and Block
What sections are NOT considered standard? - correct answer Section 18 is a
fractional section.
Exam Blueprint Q&A: Core Concepts with Explained Solutions
2025/2026
Deficiency Judgment - correct answer A deficiency judgment is an unsecured money
judgment against a borrower whose mortgage foreclosure sale did not produce
sufficient funds to pay the underlying promissory note, or loan, in full.
non-recourse loan - correct answer a loan that limits the lender's repayment options to
the assets of the business and the collateral at risk
Recourse Loan - correct answer a loan that allows the lender to seek repayment from
the borrower's personal assets
At what point does recordation take place? - correct answer The document is recorded
at the close of escrow and priority of the lien is established by the docket and page
number.
Any broker or salesperson who initiates a suit to recover a commission for performing a
regulated real estate activity must first be able to prove that he/she was properly _____
at the time the claim arose. - correct answer According to A.R.S. 32-2152 (A): to
commence an action to recover a commission, the broker or salesperson must prove
that he/she was properly licensed at the time the claim arose.
Before placing or erecting a sign giving notice that specific property is being offered for
sale, lease, rent or exchange, a licensee shall secure: - correct answer According to
Commissioner's Rule R4-28-502 (I): before placing or erecting a sign giving notice that
specific property is being offered for sale, lease, rent, or exchange, a salesperson or
broker shall secure the written consent of the property owner, and the sign shall be
promptly removed upon request of the property owner.
A licensee owes a fiduciary duty to the client that includes protecting and promoting the
client's interests. If the client is the seller or lessor and may be unable to perform, the
licensee: - correct answer According to Commissioner's Rule R4-28-1101 (B1): a
licensee participating in a real estate transaction shall disclose in writing to all other
parties any information which the licensee possesses that materially and adversely
,affects the consideration to be paid by any party to the transaction, including any
information that the seller or lessor may be unable to perform.
Cumulative Zoning - correct answer is a method of zoning in which any use permitted
in a higher-use, less intensive zone is permissible in a lower use, more intensive zone.
For example: under this method, a house could be built in an industrial zone but a
factory could not be built in a residential zone.
When zoning is cumulative this means that: - correct answer In an R-3 area, R-1 and
R-2 uses are permitted
Ernest Money - correct answer it shows buyers sincere intention (putting skin in the
game), and serves as liquidated damages thus protecting seller if buyer breaches. Note
that earnest money is not required but does bolster an offer.
The broker is required by Arizona law to reconcile his or her trust account - correct
answer Bank reconciliation and client ledger is balanced monthly.
Which of the following cannot be a trustee? - correct answer CPA
CPA - correct answer certified public accountant
A married couple bought property together. No other information is given, what type of
tenancy do they have? - correct answer A married couple would take title as
community property unless they both requested survivorship.
Which applies to Tenancy in common - correct answer All other co-ownership
tenancies have an "equal undivided shares". Tenancy in common has "fractional shares
or interests" which can be unequal.
Four widowers decided to buy a home and live together. They took title in equal shares,
but agreed that as each of them died, his share would pass to the remainder of the
, group until only one was left who would then own the entire property. The men took title
to the home as: - correct answer Joint Tenants
What must be recorded to be valid? - correct answer Beneficiary Deed
The homestead exemption protects which of the following? - correct answer Protects
the equity in your primary residence. (up to $150k)
What is it called if a property is sold and the seller remains on the land without
permission? - correct answer Tenancy at sufferance
An easement cannot be extinguished by - correct answer This is a decision of the
property owner (servient tenement).
Which best describes prior appropriation? - correct answer First in time, First in right.
The oldest permit holder has the legal right to first use of the water.
What is the only navigable waterway in Arizona? - correct answer CO River
When a person has the right to use the water adjacent to his land, this is referred to as:
- correct answer Riparian
Which is not considered a fractional section? - correct answer section 32 is a standard
section
The smallest area to survey would be: - correct answer Lot and Block
What sections are NOT considered standard? - correct answer Section 18 is a
fractional section.
