Chapter 14 - Quiz

Question 1

A Property was listed at $127,000 and sold for $125,000, how would the price appear on the settlement statement?

Credit the Seller $127,000 and Debit the Buyer $125,000
Credit the Seller $125,000 and Debit the Buyer $125,000
Credit the Buyer $127,000 and Debit the Seller $125,000
Credit the Buyer $125,000 and Debit the Seller $125,000

Answer 1

Credit the Seller $125,000 and Debit the Buyer $125,000

Question 2

Which of the following best describes the purpose of the Sales Disclosure?

An official settlement statement itemizing all charges for a borrower and a seller
An official HUD statement used by the buyer to itemize all closing charges
An official HUD statement used by the seller to itemize all closing charges
An official statement used by the listing agent to disclose all closing charges for buyer and seller

Answer 2

An official settlement statement itemizing all charges for a borrower and a seller

Used by settlement agents and title companies the Closing Disclosure is an official settlement statement itemizing all charges for a borrower and a seller

Question 3

A house sold for $280,000 and the total commission received by the broker was $21,000 what was the rate of commission?

6. 5%(Percent)
7. 5%(Percent)
8. 5%(Percent)
9. 5%(Percent)

Answer 3

7.5%(Percent)

Question 4

Sue and John buy house for $285,000 and they obtain a 75% loan how much is their loan and how does I appear on the closing statement?

$71,250 (Dollars) Credit to Buyer
$213,750 (Dollars) Credit to Seller
$71,250 (Dollars) Credit to Seller
$213,750 (Dollars) Credit to Buyer

Answer 4

$213,750 (Dollars) Credit to Buyer

$285,000 x 75% = $213,750 given to buyer by lender so Credit to Buyer

Question 5

Alex bought a lot for $7,500 and sold it 5 years later for $11,000 what was his percentage gain?

46. 7% (Percent)
47. 8% (Percent)
48. 4% (Percent)
49. 3% (Percent)

Answer 5

46.7% (Percent)

11,000-7,500=3,500:

3,500/7,500=46.667

= 46.7%

Question 6

The deed of the property is taxed based upon which of the following?

Previous Sale Price
Sale Price
Cash to Close
List Price

Answer 6

Sale Price

The deed of the property is taxed based upon the sale price

Question 7

Property Taxes of $2400 are due in arrears on a home that is due to close on March 22. Day of Closing belongs to buyer Using the Statutory Month Method what are the prorated tax charges?

Debit Seller $540 (Dollars) and Credit Buyer $540 (Dollars)
Debit Seller $540 (Dollars) and Credit Buyer $1860 (Dollars)
Credit Seller $540 (Dollars) and Debit Buyer $1860 (Dollars)
Credit Seller $540 (Dollars) and Debit Buyer $540 (Dollars)

Answer 7

Debit Seller $540 (Dollars) and Credit Buyer $540 (Dollars)

Seller owes 2 months + 21 days = 81 days; 2400/360 = 6.67 per day 6.67 x 81=540. Debit Seller $540 and Credit Buyer $540

Question 8

A Property sold for $234,000, the listing commission was 6% with the selling broker receiving 45% of the total commission. How much will the listing Sales Associate receive if he is paid 60% of the total amount received by her broker?

$14,040.00 (Dollars)
$4,633.20 (Dollars)
$6,433.20 (Dollars)
$3,790.80 (Dollars)

Answer 8

$4,633.20 (Dollars)

Question 9

A 20 Acre plot sold at $3500 per acre what is the cost of the deed stamp tax and who pays it?

$490.00 (Dollars) paid by buyer
$700.00 (Dollars) paid by seller
$490.00 (Dollars) paid by seller
$700.00 (Dollars) paid by buyer

Answer 9

490.00 (Dollars) paid by seller

Question 10

If a seller wants to net $205,500 after paying real estate commission of 6% and paying off a $100,000 HELOC how much does he need to sell the property for?

$305,500 (Dollars)
$315,000 (Dollars)
$355,000 (Dollars)
$325,000 (Dollars)

Answer 10

$325,000 (Dollars)

205,500+100,000=305,500; 305,500/94%=325,000