ASREB Test Questions and Answers with complete solution

A borrower is required to put 10% down for the purchase of a property. The 10% down would be considered... - Answer-Equity A broker, acting as a property manager, would be considered what type of agent? - Answer-General A contract has been signed, but title has not yet been passed. The contract is... - Answer-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? - Answer-$2720 In what situation would a short sale be likely? - Answer-The loan balance is greater than the property value. The real estate mortgage would be a(n)... - Answer-Voluntary Lien A company that acts as an intermediacy between a lender and an appraiser is a(n)... - Answer-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? - Answer-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? - Answer-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? - Answer-20% After a deed of trust foreclosure sale, which of the following is TRUE? - Answer-A trustee's deed is given to the new ownerAfter a mortgage foreclosure, if the sale amount was insufficient to cover the debt, the lender may ask for a(n)... - Answer-deficiency judgment An option once exercised is considered... - Answer-Unilateral executed At what point does recordation take place? - Answer-When a docket and page number are assigned What is required at the time an Affidavit of Affixture is recorded? - Answer-The titles to the mobile home must be surrendered A broker has what duty to a third party? - Answer-full disclosure of all material facts How can a buyer be assured of getting his earnest money back if his loan is not approved? - AnswerPlace 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? - Answer-240 acres If a tenant abandons a residential apartment, the landlord must do all of the following EXCEPT... - Answer-Sell the tenant's personal property after holding it for 10 days How many townships are in a 24-mile square? - Answer-16 If there are material changes from an original Public Report, the Commissioner may required the subdivider to create a(n)... - Answer-amended Public Report If cap rates in an area are going up, how does this influence value? - Answer-Value goes down In Arizona, property owned before marriage is sole and separate. Property acquired after marriage would be considered... - Answer-Community Property