CHP 61 - Leases; Taxation; Commissions; Seller's Net Flashcards
Monthly Percentage Rent =
Sales * %
Monthly rent amount?
Example. A store generates $50,000 / month. The lease calls for 1.5% percentage rent.
($50,000 x .015) = $750 / month
New rent =
current rent x (100% + escalation rate)
Example. An apartment’s rent is scheduled to increase by 6%. If the current rent is $450, the new rent is:
$450 x (100% + 6%) = $450 x 106% = $477
1 mill =
$.001
1 mill per $1,000 =
.1%
1% tax rate = __ mills
10
Tax Base =
Assessed valuations - Exemptions
Tax Rate =
Tax requirement/tax base
Tax Base =
Tax req/tax rate
Tax requirement =
Tax base X Rate
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?
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.
An apartment’s rent is scheduled to increase by 8%. If the current rent is $950, the new rent will be what?
$950 x (100% + 8%) = $950 x 108% = $1026
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?
Tax = ($300,000 ÷ 1,000) x 11 mills = $3,300
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?
The rate = budget / tax base. Thus, $20,000,000 / (400,000,000 – 25,000,000) = 5.33%
Total commission =
Sales price * commission rate
co-brokerage split =
Total commission * co-brokerage percent
Agent Split =
Co-brokerage split * agent percent
Broker Split =
CO-brokerage split - Agent split
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?
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
Seller’s net =
Sales Price - (sale price*commission) - Other closing costs - Loan balance
Sales Price =
(Desired net + CLosing costs + Loan payoff) / (1 - commission rate)
As-of-Right.
A use of land that is already permitted as a principal use within a specific zoning district with no variance request needed.
Buffer
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.
Central Business District (CBD)
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.
Exclusionary Zoning
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.
Frontage
The specified number of linear feet for a lot that fronts a dedicated street.
Incentive Zoning
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.
Local Legislature
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.
Nonconforming Use
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.
Open Meetings Law
A state statute that requires local legislature to open up most or all of their meetings to members of the general public.
Spot Zoning
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.
What does the zoning map do
effectively provides a blueprint for past, present day, and future development trends of the community over time.
