ASREB Practice exam 2023/2024 with 100% correct answers

Formula for finding property value when you have the net operating income and cap rate - correct answer Current market value(CMV)= NOI/ cap rate Example: CMV=$5.480/ .08(8%) =$68,500 When would IRS form 1099S be used? - correct answer Report sales price What's a 1099s forms - correct answer Known as an "information return. The form the federal government requires to be filed when selling real estate. If you sold any real property during the course of the year, you must will receive a form 1099-S RESPA (Real Estate Settlement Procedures Act) - correct answer a law requiring full disclosure of closing costs to buyer and seller. What is not covered by RESPA? - correct answer Cash Sale The CAN-SPAM law would apply to unsolicited - correct answer Unsolicited E-mail What is an operating expense item on a property ? - correct answer Management fees S corporation - correct answer a form of corporation that avoids double taxation by having its income taxed as if it were a partnership Which of the following is true regarding an "S Coporation" - correct answer limited number of investeros Regulation Z (Truth in Lending) - correct answer requires full written disclosure about finance charges for large payment plans involving four or more installments, excluding a down payment The books "Settlement costs and You" is a requirement of: - correct answer RESPA. Booklet heralds from RESPA