Chapter 26

Question 1

A lot was zoned 90’ x 120’. It’s sold for $155,000. What was the price per front foot?

Answer 1

1,722.22 per front foot

(school test)
(155,000 / 90)

Question 2

A triangle base is 100 feet and its height is 70 feet. What is the area ? 

Answer 2

3500 sq. Ft.
(State exam)
(100x70) / 2

Question 3

What is the formula to find area of a triangle?

Answer 3

Area = (base x height) / 2

Question 4

A broker will receive a 6% commission on the sale of a $460,000 home. What will his commission be?

Answer 4

$27,600
460,000×.06% = 27,600

Question 5

A broker received and $11,000 commission for the sale of a property. His commission was 5% of the sales price. What was the sales price of the house?

Answer 5

$220,000

$11,000 divided by .05%= $220,000

Question 6

School exam:

A broker earns a commission of $4000 in the sale of a property for $80,000. What was his commission rate?

Answer 6

5%

4000÷80,000 = .05

Question 7

How many square feet are in 1 acre?

Answer 7

43,560

(Think 3,4,5,6,0 and switch the 3 and the 4)

Question 8

State exam:

A lot measures 200‘ x 400‘. How many acres are there?

Answer 8

1.84

200×400 = 80,000
80,000÷43,560 = 1.835

Question 9

School and state exam:

A couple listed their home for $200,000 and excepted an offer for $198,600. The buyer obtained a mortgage loan for $160,000. How much did the sellers pay in transfer tax?

Answer 9

A couple listed their home for $200,000 and excepted an offer for $198,600. The buyer obtained a mortgage loan for $160,000. How much did the sellers pay in transfer tax?

$794.40

$198,600 divided by $500 = $397.20
$397.20 times two dollars = $794.40

Question 10

What is the formula for transfer tax?

Answer 10

(Sales price / by $500) x $2 

*sales price means the price that you accepted an offer for, not what the home was listed for

Question 11

If an agency received a check for $19,200 which was the sales person commission on selling a home for $320,000, then what was the commission rate?

Answer 11

6%

Question 12

What is this formula used for?
(Sales price / $500) x $2

Answer 12

Transfer tax

Question 13

State exam:

Hey sales person sells another firms listing of a commercial building for $513,500. The 6% commission split evenly between the two companies. The sales person received 65% of her offices share. How much does the sales person receive?

Answer 13

$10,013.25

$513,500 times .06% = $30,810
$30,810 / 2 = $15,405
$15,405 times .65 = 10,013.25