Azure Tide Real Estate Exam 2 UPDATED
ACTUAL Exam Questions and CORRECT
Answers
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
(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
ACTUAL Exam Questions and CORRECT
Answers
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
(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
