ASREB (Arizona School of Real Estate and Business) | High-Yield
Practice Set: Fully Solved Exam Scenarios with 100% Score
Guarantee 2025/2026
Ownership implies everything except:
(a) Destruction
(b) Enjoyment
(C) Possession
(d) Control - correct answer (a) Destruction
"Possession" indicates the buyer is the owner of that property. "Control" means the
buyer commands how to use the property. "Exclusion" means the buyer can keep
people off the property. "Enjoyment" indicates the owner's right to use the property in
any legal manner. "Disposition" means the owner can sell the property at his or her will.
Why would the APR be higher than the interest rate on the note?
(a) Interest is in arrears, therefore, increasing the lender's return
(b) Because the term of the loan could be as long as 30 years
(c) The rate on the note is simple interest and the APR is a compound rate
(d) The lender charges discount points - correct answer (c) The rate on the note is
simple interest and the APR is a compound rate
An annual percentage rate (APR) is a broader measure of the cost of borrowing money
than the interest rate. The APR reflects the interest rate, any points, mortgage broker
fees, and other charges that you pay to get the loan.
When a deed of trust is paid in full what does the borrower receive?
(a) Warranty deed
(b) Assignment of equity
(c) Satisfaction of mortgage
(d) Deed of reconveyance - correct answer (d) Deed of reconveyance
A mortgage holder issues a deed of reconveyance to indicate that the borrower has
been released from the mortgage debt. The deed transfers the property title from the
lender, also called the beneficiary, to the borrower.
,When a salesperson leaves a brokerage office where does the license go?
(a) Back to the Real Estate Department
(b) Remains with the broker
(C) Is given to the salesperson to keep
(d) Sent to the Board of Realtors within ten days - correct answer (a) Back to the Real
Estate Department
Which of the following is true regarding adverse possession?
(a) Right to use the land of another
(b) Owner's permission is necessary to file claim
(c) When the property is sold the claimant's right terminate
(d) Statutory period of time - correct answer (a) Right to use the land of another
Adverse possession is a legal doctrine that allows a person to claim a property right in
land owned by another. Common examples of adverse possession include continuous
use of a private road or driveway, or agricultural development of an unused parcel of
land.
Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot?
(a) $148,010
(b) $1,002,777.77
(c) $97,701.84
(d) $82,798.16 - correct answer (c) $97,701.84
1) 180,% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
Property taxes are $1,525. The first half was paid by the seller. A sale closes Nov 2nd,
using a calendar year, what is the debit and credit to buyer and seller on the settlement
sheet?
(a) $518.07 debit seller, credit buyer
,(b) $250.68 debit seller, credit buyer
(c) $250.68 Credit seller, debit buyer
(d) $518.07 credit seller, debit buyer - correct answer (a) $518.07 debit seller, credit
buyer
What is the most important factor a developer would take into consideration in selecting
a new area to develop?
(a) Population
(b) Bench mark
(c) Topography
(d) Location - correct answer (d) Location
The adage "location, location, location" is still king and continues to be the most
important factor for profitability in real estate investing.
Which of the following is not essential to a valid contract?
(a) Monetary consideration
(b) lawful object
(c) competent parties
(d) mutual assent - correct answer (a) Monetary consideration
Which of the following could be pursued by the lender for a deficiency?
(a) A home on 4 acres
(b) A 850-square-foot condo
(C) A mobile home on 2.5 acres
(d) A duplex on 1/2 acre - correct answer (a) A home on 4 acres
When you are foreclosing on a tax lien, where would you go?
(a) Superior court
(b) County assessor
, (c) Small claims court
(d) Justice of the peace - correct answer (a) Superior court
Prior to initiating the court action, the CP holder is required to give the property owner a
minimum of thirty days' notice by certified mail of the impending foreclosure. If the
owner fails to redeem within that thirty-day period, the CP holder may begin the
foreclosure action in Superior Court.
When would a person be best advised to use a cap rate?
(a) When determining the highest and best use of the property
(b) When using the cost approach after depreciation
(c) When determining the gross rent multiplier
(d) When converting income to value - correct answer (d) When converting income to
value
In order to acquire an easement by prescription you need:
(a) Open, hostile, continuous use
(b) Legal action
(c) Continuous use for 5 years
(d) Permission from the owner - correct answer (a) Open, hostile, continuous use
In order to derive an easement by prescription, you must: Use the property openly and
in a notorious way. Make actual use of the property. Your use must be hostile. Your use
must be in a continuous way
The right of the mortgagor to regain title is called:
(a) Hypothecate
(b) Reinstatement
(c) Redemption
(d) Reversion - correct answer (c) Redemption
The right of redemption allows individuals who have defaulted on their mortgages the
ability to reclaim their property by paying the amount due (plus interest and penalties)
before the foreclosure process begins.
Practice Set: Fully Solved Exam Scenarios with 100% Score
Guarantee 2025/2026
Ownership implies everything except:
(a) Destruction
(b) Enjoyment
(C) Possession
(d) Control - correct answer (a) Destruction
"Possession" indicates the buyer is the owner of that property. "Control" means the
buyer commands how to use the property. "Exclusion" means the buyer can keep
people off the property. "Enjoyment" indicates the owner's right to use the property in
any legal manner. "Disposition" means the owner can sell the property at his or her will.
Why would the APR be higher than the interest rate on the note?
(a) Interest is in arrears, therefore, increasing the lender's return
(b) Because the term of the loan could be as long as 30 years
(c) The rate on the note is simple interest and the APR is a compound rate
(d) The lender charges discount points - correct answer (c) The rate on the note is
simple interest and the APR is a compound rate
An annual percentage rate (APR) is a broader measure of the cost of borrowing money
than the interest rate. The APR reflects the interest rate, any points, mortgage broker
fees, and other charges that you pay to get the loan.
When a deed of trust is paid in full what does the borrower receive?
(a) Warranty deed
(b) Assignment of equity
(c) Satisfaction of mortgage
(d) Deed of reconveyance - correct answer (d) Deed of reconveyance
A mortgage holder issues a deed of reconveyance to indicate that the borrower has
been released from the mortgage debt. The deed transfers the property title from the
lender, also called the beneficiary, to the borrower.
,When a salesperson leaves a brokerage office where does the license go?
(a) Back to the Real Estate Department
(b) Remains with the broker
(C) Is given to the salesperson to keep
(d) Sent to the Board of Realtors within ten days - correct answer (a) Back to the Real
Estate Department
Which of the following is true regarding adverse possession?
(a) Right to use the land of another
(b) Owner's permission is necessary to file claim
(c) When the property is sold the claimant's right terminate
(d) Statutory period of time - correct answer (a) Right to use the land of another
Adverse possession is a legal doctrine that allows a person to claim a property right in
land owned by another. Common examples of adverse possession include continuous
use of a private road or driveway, or agricultural development of an unused parcel of
land.
Two lots sold for $180,500. One lot sold for 18% more than the other. What was the
value of the more expensive lot?
(a) $148,010
(b) $1,002,777.77
(c) $97,701.84
(d) $82,798.16 - correct answer (c) $97,701.84
1) 180,% = 82,798.16 (lower priced lot)
2) 180,500 - 82,798.16 = 97,701.84 (higher priced lot)
Property taxes are $1,525. The first half was paid by the seller. A sale closes Nov 2nd,
using a calendar year, what is the debit and credit to buyer and seller on the settlement
sheet?
(a) $518.07 debit seller, credit buyer
,(b) $250.68 debit seller, credit buyer
(c) $250.68 Credit seller, debit buyer
(d) $518.07 credit seller, debit buyer - correct answer (a) $518.07 debit seller, credit
buyer
What is the most important factor a developer would take into consideration in selecting
a new area to develop?
(a) Population
(b) Bench mark
(c) Topography
(d) Location - correct answer (d) Location
The adage "location, location, location" is still king and continues to be the most
important factor for profitability in real estate investing.
Which of the following is not essential to a valid contract?
(a) Monetary consideration
(b) lawful object
(c) competent parties
(d) mutual assent - correct answer (a) Monetary consideration
Which of the following could be pursued by the lender for a deficiency?
(a) A home on 4 acres
(b) A 850-square-foot condo
(C) A mobile home on 2.5 acres
(d) A duplex on 1/2 acre - correct answer (a) A home on 4 acres
When you are foreclosing on a tax lien, where would you go?
(a) Superior court
(b) County assessor
, (c) Small claims court
(d) Justice of the peace - correct answer (a) Superior court
Prior to initiating the court action, the CP holder is required to give the property owner a
minimum of thirty days' notice by certified mail of the impending foreclosure. If the
owner fails to redeem within that thirty-day period, the CP holder may begin the
foreclosure action in Superior Court.
When would a person be best advised to use a cap rate?
(a) When determining the highest and best use of the property
(b) When using the cost approach after depreciation
(c) When determining the gross rent multiplier
(d) When converting income to value - correct answer (d) When converting income to
value
In order to acquire an easement by prescription you need:
(a) Open, hostile, continuous use
(b) Legal action
(c) Continuous use for 5 years
(d) Permission from the owner - correct answer (a) Open, hostile, continuous use
In order to derive an easement by prescription, you must: Use the property openly and
in a notorious way. Make actual use of the property. Your use must be hostile. Your use
must be in a continuous way
The right of the mortgagor to regain title is called:
(a) Hypothecate
(b) Reinstatement
(c) Redemption
(d) Reversion - correct answer (c) Redemption
The right of redemption allows individuals who have defaulted on their mortgages the
ability to reclaim their property by paying the amount due (plus interest and penalties)
before the foreclosure process begins.
