CHP 61 - Leases; Taxation; Commissions; Seller's Net

Question 1

Monthly Percentage Rent =

Answer 1

Sales * %

Question 2

Monthly rent amount?

Example. A store generates $50,000 / month. The lease calls for 1.5% percentage rent.

Answer 2

($50,000 x .015) = $750 / month

Question 3

New rent =

Answer 3

current rent x (100% + escalation rate)

Question 4

Example. An apartment’s rent is scheduled to increase by 6%. If the current rent is $450, the new rent is:

Answer 4

$450 x (100% + 6%) = $450 x 106% = $477

Question 5

1 mill =

Answer 5

$.001

Question 6

1 mill per $1,000 =

Answer 6

.1%

Question 7

1% tax rate = __ mills

Answer 7

10

Question 8

Tax Base =

Answer 8

Assessed valuations - Exemptions

Question 9

Tax Rate =

Answer 9

Tax requirement/tax base

Question 10

Tax Base =

Answer 10

Tax req/tax rate

Question 11

Tax requirement =

Answer 11

Tax base X Rate

Question 12

Marcos Pizza has a percentage lease on its 1,500 SF space in the Ashwood Center. The terms are $1.25 / SF / month rent plus 2% of the store’s gross income. If monthly sales averaged $35,000 last year, how much annual rent did Marcos Pizza pay last year?

Answer 12

Their fixed rent is (1,500 SF x $1.25/SF) x 12 months, or $22,500. The percentage rent is ($35,000 x .02) x 12, or $8,400. Total rent is ($22,500 + 8,400), or $30,900.

Question 13

An apartment’s rent is scheduled to increase by 8%. If the current rent is $950, the new rent will be what?

Answer 13

$950 x (100% + 8%) = $950 x 108% = $1026

Question 14

A tax rate on a house with a $300,000 taxable value is 11 mills per thousand dollars of assessed valuation. What is the tax?

Answer 14

Tax = ($300,000 ÷ 1,000) x 11 mills = $3,300

Question 15

The village of Parrish has an annual budget requirement of $20,000,000 to be funded by property taxes. Assessed valuations are $400,000,000, and exemptions total $25,000,000. What must the tax rate be to finance the budget?

Answer 15

The rate = budget / tax base. Thus, $20,000,000 / (400,000,000 – 25,000,000) = 5.33%

Question 16

Total commission =

Answer 16

Sales price * commission rate

Question 17

co-brokerage split =

Answer 17

Total commission * co-brokerage percent

Question 18

Agent Split =

Answer 18

Co-brokerage split * agent percent

Question 19

Broker Split =

Answer 19

CO-brokerage split - Agent split

Question 20

Commission Split Example. A $300,000 property sells at a 7% commission with a 50-50 co-brokerage split and a 60% agent split with her broker. What are the total, co-brokerage, agent’s, and broker’s commissions?

Answer 20

Total commission = $300,000 x .07 = $21,000

Co-brokerage splits = $300,000 x .07 x .50 = $10,500

Agent split = $10,500 x .60 = $6,300

Agent’s broker’s split = $10.500 - 6,300 = $4,200

Question 21

Seller’s net =

Answer 21

Sales Price - (sale price*commission) - Other closing costs - Loan balance

Question 22

Sales Price =

Answer 22

(Desired net + CLosing costs + Loan payoff) / (1 - commission rate)

Question 23

As-of-Right.

Answer 23

A use of land that is already permitted as a principal use within a specific zoning district with no variance request needed.

Question 24

Buffer

Answer 24

A designated area of land controlled by local zoning regulations partly as a “buffer” region to protect adjacent areas from the impacts of development on the local environment.

Question 25

Central Business District (CBD)

Answer 25

he traditional business core of a community which typically is the location where a high concentration of business locations and activity are located within a typically relatively small region of an urban region (e.g., retail and services sector). This is also the prime region where more people tend to walk or take urban transportation options such as subways, buses, or trains.

Question 26

Exclusionary Zoning

Answer 26

When a specific geographical region does not provide enough affordable types of housing options which were suggested by the local municipality. The community is then alleged to be practicing exclusionary zoning.

Question 27

Frontage

Answer 27

The specified number of linear feet for a lot that fronts a dedicated street.

Question 28

Incentive Zoning

Answer 28

When incentives are provided to real estate developers for providing sufficient affordable housing, open space, daycare facilities, or infrastructure features deemed beneficial to the city. These incentives may provide for higher density or increased square footage options, and waivers for height, setbacks, or other usage modifications of the existing zoning ordinance.

Question 29

Local Legislature

Answer 29

This governmental body (e.g., a City Council) adopts and amends the comprehensive plan, zoning, and land use regulations as well as may issue building permits and perform additional administration functions.

Question 30

Nonconforming Use

Answer 30

Land use not typically permitted by zoning law, but which already existed at the time the zoning law or amendment was created. Many nonconforming uses may continue to be used by property owners, but this usage may not be modified even further by the property owners.

Question 31

Open Meetings Law

Answer 31

A state statute that requires local legislature to open up most or all of their meetings to members of the general public.

Question 32

Spot Zoning

Answer 32

The rezoning of a single parcel of land which may benefit one or more property owners as opposed to a modification of the comprehensive plan for the entire local region.

Question 33

What does the zoning map do

Answer 33

effectively provides a blueprint for past, present day, and future development trends of the community over time.