Azure Tide Real Estate Exam 2 Questions with Correct Answers Graded A+ Gross Rental Multiplier (GRM) is an easy-to-use a calculation to get an estimated value for a potential investment. What is the formula used to calculate the GRM value? - Correct Answer Sale Price (Market Value )/ Gross Monthly Rental Income = Gross Rent Multiplier (GRM) Jill bought a house 3 years ago and paid $175,000 for it and spent $7,000 in closing costs. Since, then she has made several improvements to the property for $75,000. Jills boss promoted her to VP of Market 5 and she had to relocate. She sold her house for $375,000 with $30,000 in selling costs. She bought a new house for $290,000. What is the capital gain on the sale of her original home? - Correct Answer $88,000 [Section 17 Slide 26-27, Page 495]; $175,000 + $7,000 + $75,000 = $257,000 Adjusted Basis. $375,000-
$30,000 = $345,000 - $257,000 = $88,000
Todd is a 59-year-old veteran that is legally blind and 25% disabled due to injuries he sustained in the military. His homesteaded property has an assessed value of $150,500. What is his taxable value for county taxes?
1) $55,500
2) $95,000
3) $100,500
4) $110,000 - Correct Answer $95,000 [Section 18 Slide 55-56, Page 531] $150,500 - $50,000 regular exemptions - $500 blind exemption - $5,000 partial veteran disability = $95,000
A licensee does not:
1) Need to be 18 years old or older 2) Need to be a high school graduate or equivalent 3) Need to be a US citizen 4) Need a social security number - Correct Answer Need to be a US citizen 1 / 2
(section 2 slide 58 page 34) Which of the following statements are false regarding The Real Estate Settlement Procedures Act
(RESPA)?
1) Title companies cannot give a kickback as a referral fee to a real estate licensee.2) Kickbacks are said to harm consumers by driving down the cost of transactions.3) Mortgage brokers can only pay other mortgage brokers a referral fee.4) Real Estate Licensees can only pay other real estate licensees a referral fee. - Correct Answer Kickbacks are said to harm consumers by driving down the cost of transactions.What is homestead protection? - Correct Answer A status provided for a homeowner's principal residence which protects the home against foreclosure from debt such as credit cards or medical bills There are two parties to a mortgage. Which is the correct pairing? - Correct Answer Mortgagor = Borrower
A contract that is void is described by all of the following statements except:
1) Can be performed under the law 2) Cannot be enforced by either party 3) Does not meet the definition of a valid contract 4) Treated as though it had never been formed - Correct Answer Can be performed under the law What are the factors that influence supply?1) Availability of land 2) Availability of materials 3) Availability of construction loans
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