ASREB TEST QUESTIONS & ANSWERS SOLVED 100% CORRECT!!

ASREB TEST QUESTIONS & ANSWERS SOLVED 100% CORRECT!! A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered... Equity A broker, acting as a property manager, would be considered what type of agent? General A contract has been signed, but title has not yet been passed. The contract is... Executory A house cost $100,000. The buyer is making a down payment of 32,000 and getting a $68,000 loan. If there are 4 points, how much money will be paid out of the closing for points? $2720 In what situation would a short sale be likely? The loan balance is greater than the property value. The real estate mortgage would be a(n)... Voluntary Lien A company that acts as an intermediacy between a lender and an appraiser is a(n)... Appraisal Management Company A seller list a property with a brokerage, sell it himself, and does not have to pay a commission. What kind of listing did the seller sign? Exclusive Agency A seller wants to list a four plex and live in one unit, but doesn't want any children in the units. What should the agent do? Refuse the listing; it violates fair housing If the percentage of renters in a community exceeds 50%, many lenders require that the homeowners' association reserves be what percentage of HOA budgeted income? 20% After a deed of trust foreclosure sale, which of the following is TRUE? A trustee's deed is given to the new owner After a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n)... deficiency judgment An option once exercised is considered... Unilateral executed At what point does recordation take place? When a docket and page number are assigned What is required at the time an Affidavit of Affixture is recorded? The titles to the mobile home must be surrendered A broker has what duty to a third party? full disclosure of all material facts How can a buyer be assured of getting his earnest money back if his loan is not approved? Place a contingency clause in the contract A legal description reads as follows: "The NW 1/4 of Section 2 and the W 1/2 of the SW 1/4 of section 35." How man acres is this? 240 acres If a tenant abandons a residential apartment, the landlord must do all of the following EXCEPT... Sell the tenant's personal property after holding it for 10 days How many townships are in a 24-mile square? 16 If there are material changes from an original Public Report, the Commissioner may required the subdivider to create a(n)... amended Public Report If cap rates in an area are going up, how does this influence value? Value goes down In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered... Community Property The right of an Arizona real estate licensee to prepare certain legal documents and forms comes from... The Arizona Constitution What clarifies ADRE's position on statues or rules? Substantive Policy Statements The concept that information given to a client's agent has been given to the client is known as Imputed Notice On a settlement statement, rent paid in advance would be a... credit to the buyer, debit to the seller If the buyer of a property wants to remain anonymous, what terms should be used for that buyer's name in the purchase contract? Or Nominee Which of the following listings would NOT be entered into a multiple listing service? pocket listing The main purpose of the Federal Housing Administration is to... insure loans The relationship between a broker and their salesperson is what type of agency? General Which of the following is determined by measuring the exterior dimensions of a home including garages, patios and entryways? Square footage under roof When a property that has a well is sold, what must be sent to ADWR? Transfer of Well Rights Form Under what condition would a listing agreement NOT terminate? The salesperson dies What document is recorded with the deed? affidavit of value What is the maximum security deposit allowed under the Arizona Landlord Tenant Act? 1 1/2 month's rent Real estate licensees should safeguard a client's or customer's personal information in order to prevent identity theft If an owner improves a property, a licensed contractor is required to be used in all of these situations EXCEPT if the property is owner-occupied for more than one year When a person buys a condo, how do they hold title to the common areas? Tenancy in Common A person named in an insurance policy who will receive the insurance proceeds if the property is damaged is the loss payee When a property located within a homeowners association is listed for sale, who is responsible for supplying the relevant documents to prospective buyer The HOA, if there are more than 50 units At close of escrow, which of the following forms must be filed with the IRS 1099 S Under what circumstances can an owner of a single-family residence depreciate the property for tax purposes? if the property is a rental When land is purchased interstate, how long would a buyer have to rescind under provisions of the Federal Interstate Land Sales Full Disclosure Act? Within 7 days of receiving a property report A lender of a conventional loan would require private mortgage insurance (PMI) when the loan-to-value is More than 80% Water rights for what Arizona rivers are being adjudicated in court? Gila and Little Colorado Rivers A septic tank report is valid for 6 months If a property lies within the boundaries of the areas in which water rights are being adjudicated, the owners must file a claim to be included in the court's decision What does the seller pay for at closing? deep preparation A broker is hired by a seller to sell the clients real property. the broker must obey: All lawful instructions of the client An expanded agency, which does not require the additional consent of the principal for the agent to act, is a/an Agency by necessity after economic life of property has expired, there exists residual value Which of the following does not derive from a city's police power? Developer's restrictive covenants What would not apply to Police Power? Condemnation Which of the items listed below is an interest in real property but not an estate? Mortgage What would not be a legal principle when applying legal tests to fixtures? Cost of the item A buyer is obtaining a new loan to purchase property. The buyer is most likely to accept title with which of the following liens remaining unpaid as of close of escrow: Property taxes for the current year for the property being sold What type of legal description is based on a baseline and principal meridian? Rectangular survey system Tom, Rick, and Harry own a house. When Rick dies, his heirs receive his 1/3 interest. What type of co-ownership did they have? Tenancy in common Which of the following is not properly included in the concept of the power of eminent domain: The right of government to confiscate property from the owner Market price is closest to: The amount of money given in exchange for the property (value in exchange) Appraisal licensing is required by: FIRREA Which of the following would be the best technique for an appraiser to use on a single family residence that is new? The cost method is a valid approach which is the most effective on newer properties What is the adjusted gross income and how do you arrive at it? Total rents less vacancies and credit losses A salesperson's listing expired 3 days ago and the salesperson cannot reach the seller for 3 weeks. What must the salesperson do? Remove the sign and wait to re-list the property before proceeding with marketing Who would be considered exempt under the Civil Rights Act of 1866? There are no exemptions Which of the following is correct about a lease purchase agreement? Obligation to buy When a broker represents a buyer only, what would be the relationship between the buyer broker and seller? Customer When does an agent working for the seller have a fiduciary duty to the buyer? When the agent is legally acting as a dual agent During a phone call, a salesperson discusses showing a property to a prospect. Three days later, the agent shows the property; at that time the customer reveals her financial abilities and motivation. Three days after that, the agent prepares her offer; he asks the buyer to sign an agency disclosure statement stating he represents the seller. When should the agent have disclosed this fact?