ASREB Practice Exam, Sessions 1-18, Study Guide Questions Correctly Answered And Graded A+

ASREB Practice Exam, Sessions 1-18, Study Guide Questions Correctly Answered And Graded A+ ASREB A 3.45-acre lot sells for 50 cents per square foot. What is the selling price? A) $37,570 B) $75,141 C) $76,230 D) $78,712 B 3.45 acres x 43,560 = 150,282 SF 150,282 SF x $0.50 = $75,141 A blind ad refers to an ad that A) provides no price. B) provides no address. C) gives no indication that the property is listed with a broker. D) gives no indication that the property has bene sold or not. C A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered A) equity. B) boot. C) tax shelter. D) leverage. A A broker, acting as a property manager, would be what type of agent? A) special B) general C) implied D) ostensible B A buyer pays 20% down and obtains a real estate mortgage. The buyer makes no further payments. What clause would the lender now exercise? A) alienation B) habendum C) novation D) acceleration D When a new home is still under construction, the County Assessor may A) increase the assessed value ration. B) increase the full cash value. C) decrease the tax rate. D) appeal the limited property value. B A contract has been signed, but title has not yet been passed. The contract is A) executed. B) executory. C) recorded D) estopped. B A handicapped person is leasing a house that requires modification. Which of the following is TRUE about the modification? A) The lessor may forbid handicapped modifications. B) The lessor can require the lessee to reasonably restore the property at the end of the lease. C) The lessor must pay for the modifications. D) The lessor can increase the rent due to the risk of the handicapped person. B A holdover tenant would have a(n) A) estate at sufferance. B) estate at well. C) freehold estate. D) remainder estate. A Which of these property classifications is used for vacant land? A) Class 1 B) Class 2 C) Class 3 D) Class 4 B A house costs $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 the points? A) $400 B) $1,280 C) $2,720 D) $4,000 C $68,000 X 0.04 = $2,720 A lender refuses to loan or limits loans in a certain minority neighborhood. This action is called A) steering. B) blockbusting. C) redlining. D) territory allocation. C A lessee puts in a bookcase for commercial use; at the end of the lease the bookcase is removed. The bookcase would be considered A) real property. B) trade fixture. C) appurtenant. D) chattel real. B To finance the infrastructure for a subdivision development, Arizona law allows the formation of A) Homeowner's Associations. B) Community Facilities Districts. C) Planned Communities. D) Planned Unit Developments B A listing broker receives several offers at the same time. The broker should A) present only the best. B) present all the offers. C) present the three best. D) wait for more offers before presenting to the seller. B A Loan Estimate must be given to a borrower within three business days A) of loan application. B) after the buyer's request. C) after closing. D) prior to closing. A A party lives on a property without permission of the owner. After the legally required time period, if the occupant receives title to the property it was done so through A) easement by prescription. B) adverse possession. C) escheat. D) eminent domain. B In what situation would a short sale be likely? A) The loan balance is greater than the property value. B) The loan balance is less than the property value. C) The loan has a non-recourse provision. D) The total of all liens is less than the property value. A A real estate mortgage would be a(n) A) involuntary lien. B) general lien. C) voluntary lien. D) statutory lien. C A real estate sale was closed on March 21. The assessed value of the property is $72,500 and the tax rate is $1.75 per $100 of assessed value. What is the proper entry on the seller's settlement statement if the buyer owns day of closing and we are using a calendar year? A) $278.08 debit B) $278.08 credit C) $274.60 debit D) $274.60 credit C $72,500/$100 = 725 units $1.75 x 725 units = $1,268.75 $1,268.75/365 = $3.4760/day Jan=31 + Feb=28 + Mar=2- = 79 days $3.4760 x 79 days = $274.60 debit seller A right of way over Parcel A to Parcel B identifies Parcel B as the A) servient tenement. B) dominant tenement. C) appurtenant estate. D) encroachment estate. B A company that acts as an intermediary between a lender and an appraiser is a(n) A) full service appraisal company. B) real estate brokerage company. C) appraisal management company. D) appraisal evaluation company. C A seller lists a property with a brokerage, sells it himself, and does not have to pay a commission. What kind of listing did the seller sign? A) exclusive right to sell B) exclusive agency C) net listing D) gross listing B A seller needs to pay an estimated $2,000 in closing costs, $150,000 on his current mortgage, and wants $58,000 in cash for a down payment on another house. His listing agreement obligates him to pay 7% commission to the brokerage. What is the minimum selling price he can accept? (Round your answer up to the nearest dollar). A) $197,400 B) $218,400 C) $222, 600 D) $225,807 D $2,000 + $150,000 + $58,000 = $210,000 100% - 7% = 93% $210,000/0.93 = $225,807 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? A) List the property and indicate no children. B) Refuse the listing; it violates fair housing. C) Change the families with children a higher desposit. D) Refuse the application if they have children. B A valid contract must have A) offer and acceptance. B) street address. C) earnest money. D) escrow instructions. A 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? A) 5% B) 10% C) 15% D) 20% D After a deed of trust foreclosure sale, which of the following is TRUE? A) A deed of reconveyance is given to the trustor. B) The note is marked paid and returned to the trustor. C) A trustee's deed is given to the new owner. D) The trust deed is returned to the trustor. C After a mortgage foreclosure, if the sale amount as insufficient to cover the debt, the lender may ask for a(n) A) deficiency judgement B) assessment. C) assignment of rents. D) deed in lieu of foreclosure. A All of the following would be considered appurtenant in a real estate transaction EXCEPT A) mineral rights. B) property improvements. C) annual crops. D) the bundle of rights. C A property in which unrelated people who need care, support or supervision live together and which is protected by fair housing laws from discrimination by neighbors is a A) homestead. B) relined home. C) single-family home. D) group home. D An option once exercised is considered A) unilateral executed. B) bilateral executed. C) unilateral executory. D) bilateral executory. A As of June 30th of any year, what must be the balance in the Real Estate Recovery Fund to avoid additional fees to licensees? A) $200,000 B) $250,000 C) $300,000 D) $600,000 D At what point does recordation take place? A) when a docket and page number are assigned B) at the close of escrow date C) the date the document was signed D) the date the document was notarized A B expects a return of 8% on his investments and is considering a property with an asking price of $670,000. The records show a potential income of $6,200 a month, expenses of $1,500 a month, and a vacancy factor of 10%. With this information in mind, what would be the estimate of value? A) $137,000 B) $343,250 C) $612,000 D) $818,250 C $6,200 x 12 = $74,400 $74,400 x 0.10 = $7,440 $74,440 - $18,000 ($1,500 x 12) - $7,440 = $48,960 $48,960/0.08 = $612,000 Before a tenant can exercise the self-help for minor defect provision, the tenant must give the owner how many days to cure the defect? A) 3 days B) 5 days C) 7 days D) 10 days D What is required at the tie an Affidavit of Affixtture is recorded? A) The mobile home must have skirts installed. B) The County Assessor must inspect the property. C) The titles to the mobile home must be surrendered. D) The mobile home must be owner-occupied C A broker has what duty to a third party? A) fiduciary B) full disclosure of all material facts