ASREB (Arizona School of Real Estate and Business)
Pearson Vue | Competency-Based Exam Prep: Validated
Questions with Industry-Approved Solutions 2025/2026
The difference between the value of a property and the total amount of liens against it is
known as? - correct answer Equity
The donation of private land for public use is called? - correct answer Dedication
A title insurance policy will protect a buyer from financial losses that are caused by an? -
correct answer Encumbrance to which the policy hasn't taken an exception
A plaintiff files a lawsuit against a licensee for a property that was later determined to
have termite damage. The licensee was unaware of any. The type of insurance that
protects the licensee in this situation is? - correct answer Errors & Omissions
When a buyer purchases a property subject to a sellers existing mortgage, which of the
following statements is correct? - correct answer The seller's obligation under the
existing mortgage remains unchanged
A valid real estate sales contract must? - correct answer Be signed by the seller
The price at which a willing and informed buyer would buy, and a willing and informed
seller would sell, is called the? - correct answer Market Value
The owner of a farm has found a buyer for the property, which is leased to a tenant
farmer. With regard to any growing crops that were planted statements is TRUE? -
correct answer The tenant owns the crops
With the exception of court-ordered sales, the amount of earnest money to be deposited
by a prospective buyer is determined by the? - correct answer Agreement between the
seller and the buyer
, Broker P lists a property for a seller. A buyer, represented by Broker Q, submits an offer
to purchase the house and tells Broker P that they are willing to pay the set offer price, if
the seller counters. In this situation, Broker P is? - correct answer Obligated to convey
the information to the seller because of the duties to their client.
If a purchase contact for a commercial property includes a due diligence contingency for
the buyer, then the buyer may? - correct answer Terminate the contract if the buyer is
not satisfied with the inspection.
A net lease affords the lessee the? - correct answer Deduction for real estate taxes
The CERCLA is administered by the? - correct answer Environmental Protection
Agency (EPA)
A portion of an advertised reads: "New four-bedroom, two-bath home for sale in a family
neighborhood. Yours for only $1,100 per month". This advertisement violates the? -
correct answer Truth in Lending and Fair Housing Acts
Which of the following actions is an example of blockbusting? - correct answer Stating
that the presence of certain persons in a neighborhood will increase crime.
Buyers make an earnest money deposit on a property and sign a contract that is
contingent on specific financing terms. Though a bank commits to the financing, the
buyers end up changing their minds. The buyers proceed to notify the seller, in writing,
that they do not intend to buy the property. Which of the following statements is correct?
- correct answer The seller may sure for breach of contract.
Which of the following phrases is considered discriminatory advertising by HUD? -
correct answer Exclusive Neighborhood
As defined in a real estate contract, the due diligence period allows which party to
thoroughly investigate a property? - correct answer Buyer
Pearson Vue | Competency-Based Exam Prep: Validated
Questions with Industry-Approved Solutions 2025/2026
The difference between the value of a property and the total amount of liens against it is
known as? - correct answer Equity
The donation of private land for public use is called? - correct answer Dedication
A title insurance policy will protect a buyer from financial losses that are caused by an? -
correct answer Encumbrance to which the policy hasn't taken an exception
A plaintiff files a lawsuit against a licensee for a property that was later determined to
have termite damage. The licensee was unaware of any. The type of insurance that
protects the licensee in this situation is? - correct answer Errors & Omissions
When a buyer purchases a property subject to a sellers existing mortgage, which of the
following statements is correct? - correct answer The seller's obligation under the
existing mortgage remains unchanged
A valid real estate sales contract must? - correct answer Be signed by the seller
The price at which a willing and informed buyer would buy, and a willing and informed
seller would sell, is called the? - correct answer Market Value
The owner of a farm has found a buyer for the property, which is leased to a tenant
farmer. With regard to any growing crops that were planted statements is TRUE? -
correct answer The tenant owns the crops
With the exception of court-ordered sales, the amount of earnest money to be deposited
by a prospective buyer is determined by the? - correct answer Agreement between the
seller and the buyer
, Broker P lists a property for a seller. A buyer, represented by Broker Q, submits an offer
to purchase the house and tells Broker P that they are willing to pay the set offer price, if
the seller counters. In this situation, Broker P is? - correct answer Obligated to convey
the information to the seller because of the duties to their client.
If a purchase contact for a commercial property includes a due diligence contingency for
the buyer, then the buyer may? - correct answer Terminate the contract if the buyer is
not satisfied with the inspection.
A net lease affords the lessee the? - correct answer Deduction for real estate taxes
The CERCLA is administered by the? - correct answer Environmental Protection
Agency (EPA)
A portion of an advertised reads: "New four-bedroom, two-bath home for sale in a family
neighborhood. Yours for only $1,100 per month". This advertisement violates the? -
correct answer Truth in Lending and Fair Housing Acts
Which of the following actions is an example of blockbusting? - correct answer Stating
that the presence of certain persons in a neighborhood will increase crime.
Buyers make an earnest money deposit on a property and sign a contract that is
contingent on specific financing terms. Though a bank commits to the financing, the
buyers end up changing their minds. The buyers proceed to notify the seller, in writing,
that they do not intend to buy the property. Which of the following statements is correct?
- correct answer The seller may sure for breach of contract.
Which of the following phrases is considered discriminatory advertising by HUD? -
correct answer Exclusive Neighborhood
As defined in a real estate contract, the due diligence period allows which party to
thoroughly investigate a property? - correct answer Buyer
