ASREB (Arizona School of Real Estate and Business) | Final Exam
Simulation Set: Correctly Solved Questions with Grading Assurance
2025/2026
What is an association in regard to subdivisions?
A city commission that determines where a subdivision can be built.
A group of like-minded residents who enjoy a specific activity.
A nonprofit corporation that residents pay a fee to for the purpose of maintaining
subdivision common amenities.
The state agency that governs land use. - correct answer A nonprofit corporation that
residents pay a fee to for the purpose of maintaining subdivision common amenities.
Gregory called his landlord to let him know a city inspector came by and left a notice
that the paint on the house was peeling, which was against code and had to be
remedied. Instead of his landlord
having to put out a lot of money, Gregory suggested that he would paint the house over
the weekend
and deduct the cost of materials plus a modest amount from his next month's rent. Is
this permitted
under Arizona law?
No, because the tenant can't reduce rent in that manner.
No, because the work had to be done to meet housing code.
Yes, as long as both parties agree.
Yes, but the tenant must supply an itemized list of goods and services. - correct
answer No, because the work had to be done to meet housing code.
The economic principle of ______ says that when there are two houses in the same
neighborhood
with the same size, appeal, and utility, the lower-priced one will tend to sell first.
Correlation
Substitution
Supply and demand
,Under-bidding - correct answer Substitution
How are Real Estate Advisory Board members compensated for their work on the
board?
They don't receive any compensation for their work with the board.
They receive compensation for their work as well as travel expenses and reasonable
subsistence.
They're given compensation once their term is over.
They're provided with a set annual salary. - correct answer They don't receive any
compensation for their work with the board.
In which of the following situations does a new tenant take the place of a departing
tenant?
Actual eviction
Assignment
Constructive eviction
Rescission - correct answer Assignment
The Arizona boilerplate purchase contract includes a number of preprinted provisions,
as well as many
that the licensee will fill in. Which of these items in that boilerplate contract would be
information specific to a transaction, and therefore subject to errors?
The legal description
The provision requiring that sellers provide a property disclosure
The provisions reminding the buyer to perform inspections if items such as pests and
homeowner's insurance are a concern
The provision stipulating circumstances that require a lead-based paint disclosure -
correct answer The legal description
What entity administers the National Flood Insurance Program?
Army Corps of Engineers
, Attorney general
FDIC
FEMA - correct answer FEMA (The Federal Emergency Management Agency)
Which of the following options describes a subordination agreement?
An agreement between a contractor and any subcontractors
An agreement between a landowner and a contractor
An agreement between the court and landowner to decrease property taxes
An agreement between two lien holders to modify the order of lien priority - correct
answer An agreement between two lien holders to modify the order of lien priority
What's an appropriate strategy when working with a prospective short sale seller?
Bring a list of documents the lender will need.
Have the seller write a hardship letter based on a new baby in the family.
Make an initial application that you expect to be rejected to determine what the lender is
looking for in terms of documentation.
Provide documentation that proves the seller's strong financial position. - correct
answer Bring a list of documents the lender will need.
Which form of ownership allows an unlimited number of co-owners but can only be
created if the four unities are present?
Estate in severalty
Joint tenancy
Tenancy by the entirety
Tenancy in common - correct answer Joint tenancy
Liz is a property manager who is screening applications from prospective tenants.
Which of these reflects an acceptable way to perform this task?
She accepts or rejects tenants based on her gut feeling; usually if she likes people, they
work out.
Simulation Set: Correctly Solved Questions with Grading Assurance
2025/2026
What is an association in regard to subdivisions?
A city commission that determines where a subdivision can be built.
A group of like-minded residents who enjoy a specific activity.
A nonprofit corporation that residents pay a fee to for the purpose of maintaining
subdivision common amenities.
The state agency that governs land use. - correct answer A nonprofit corporation that
residents pay a fee to for the purpose of maintaining subdivision common amenities.
Gregory called his landlord to let him know a city inspector came by and left a notice
that the paint on the house was peeling, which was against code and had to be
remedied. Instead of his landlord
having to put out a lot of money, Gregory suggested that he would paint the house over
the weekend
and deduct the cost of materials plus a modest amount from his next month's rent. Is
this permitted
under Arizona law?
No, because the tenant can't reduce rent in that manner.
No, because the work had to be done to meet housing code.
Yes, as long as both parties agree.
Yes, but the tenant must supply an itemized list of goods and services. - correct
answer No, because the work had to be done to meet housing code.
The economic principle of ______ says that when there are two houses in the same
neighborhood
with the same size, appeal, and utility, the lower-priced one will tend to sell first.
Correlation
Substitution
Supply and demand
,Under-bidding - correct answer Substitution
How are Real Estate Advisory Board members compensated for their work on the
board?
They don't receive any compensation for their work with the board.
They receive compensation for their work as well as travel expenses and reasonable
subsistence.
They're given compensation once their term is over.
They're provided with a set annual salary. - correct answer They don't receive any
compensation for their work with the board.
In which of the following situations does a new tenant take the place of a departing
tenant?
Actual eviction
Assignment
Constructive eviction
Rescission - correct answer Assignment
The Arizona boilerplate purchase contract includes a number of preprinted provisions,
as well as many
that the licensee will fill in. Which of these items in that boilerplate contract would be
information specific to a transaction, and therefore subject to errors?
The legal description
The provision requiring that sellers provide a property disclosure
The provisions reminding the buyer to perform inspections if items such as pests and
homeowner's insurance are a concern
The provision stipulating circumstances that require a lead-based paint disclosure -
correct answer The legal description
What entity administers the National Flood Insurance Program?
Army Corps of Engineers
, Attorney general
FDIC
FEMA - correct answer FEMA (The Federal Emergency Management Agency)
Which of the following options describes a subordination agreement?
An agreement between a contractor and any subcontractors
An agreement between a landowner and a contractor
An agreement between the court and landowner to decrease property taxes
An agreement between two lien holders to modify the order of lien priority - correct
answer An agreement between two lien holders to modify the order of lien priority
What's an appropriate strategy when working with a prospective short sale seller?
Bring a list of documents the lender will need.
Have the seller write a hardship letter based on a new baby in the family.
Make an initial application that you expect to be rejected to determine what the lender is
looking for in terms of documentation.
Provide documentation that proves the seller's strong financial position. - correct
answer Bring a list of documents the lender will need.
Which form of ownership allows an unlimited number of co-owners but can only be
created if the four unities are present?
Estate in severalty
Joint tenancy
Tenancy by the entirety
Tenancy in common - correct answer Joint tenancy
Liz is a property manager who is screening applications from prospective tenants.
Which of these reflects an acceptable way to perform this task?
She accepts or rejects tenants based on her gut feeling; usually if she likes people, they
work out.
