ASREB (Arizona School of Real Estate and Business)
Session 4: Commission Math and Purchase Contracts Guide
Exam Questions and Verified for Accuracy Answers
2025/2026
The term _______ is used to indicate that someone other than the party named in the
contract will complete the transaction.
or nominee
The earnest money is given to show the buyer's
good faith intention
A broker who mixes personal money with trust funds is guilty of
commingling
Earnest money is usually held by the
buyers broker
The amount of earnest money is
negotiable
In an Arizona purchase agreement, the form of earnest money must
be stated in the agreement
In Arizona, unless otherwise agreed in writing , the broker must immediately place
earnest money into a _________
trust account or escrow
The use of a client's funds for the agent's own use is
conversion
1. By agreement in the contract, earnest money for _ _____ is usually placed in the
seller's business account.
, new home sales
If the buyers in a purchase agreement were killed in an auto accident before closing:
the purchase agreement is binding on their estate
The amount of the earnest money is determined by the
buyer and seller
S makes an offer to purchase a home listed by a broker, but the seller is not available
until Wednesday. On Tuesday S wishes to withdraw the offer. Which of the following
statements is CORRECT?
The broker must return the deposit and offer
Between the time the purchase contract is signed by the buyer and seller and title
changes hands, the contract is
executory
A property is listed for $45,000. Broker M brings a buyer who offers $44,000. The seller
then counters with $44,500, but the counteroffer is NOT accepted by the buyer. Later,
the seller decides to accept the $44,000 offer. Which of the following statements is
CORRECT
There is no contract in effect
A seller accepts a purchase contract but makes a minor modification in the terms. The
purchaser is
relieved of the original offer
T made an offer to buy a property which the seller accepted. The acceptance was
communicated to T by phone, but T died before receiving the contract. In this situation:
T's death voided the contract
Session 4: Commission Math and Purchase Contracts Guide
Exam Questions and Verified for Accuracy Answers
2025/2026
The term _______ is used to indicate that someone other than the party named in the
contract will complete the transaction.
or nominee
The earnest money is given to show the buyer's
good faith intention
A broker who mixes personal money with trust funds is guilty of
commingling
Earnest money is usually held by the
buyers broker
The amount of earnest money is
negotiable
In an Arizona purchase agreement, the form of earnest money must
be stated in the agreement
In Arizona, unless otherwise agreed in writing , the broker must immediately place
earnest money into a _________
trust account or escrow
The use of a client's funds for the agent's own use is
conversion
1. By agreement in the contract, earnest money for _ _____ is usually placed in the
seller's business account.
, new home sales
If the buyers in a purchase agreement were killed in an auto accident before closing:
the purchase agreement is binding on their estate
The amount of the earnest money is determined by the
buyer and seller
S makes an offer to purchase a home listed by a broker, but the seller is not available
until Wednesday. On Tuesday S wishes to withdraw the offer. Which of the following
statements is CORRECT?
The broker must return the deposit and offer
Between the time the purchase contract is signed by the buyer and seller and title
changes hands, the contract is
executory
A property is listed for $45,000. Broker M brings a buyer who offers $44,000. The seller
then counters with $44,500, but the counteroffer is NOT accepted by the buyer. Later,
the seller decides to accept the $44,000 offer. Which of the following statements is
CORRECT
There is no contract in effect
A seller accepts a purchase contract but makes a minor modification in the terms. The
purchaser is
relieved of the original offer
T made an offer to buy a property which the seller accepted. The acceptance was
communicated to T by phone, but T died before receiving the contract. In this situation:
T's death voided the contract
