Practice Exam 1 Flashcards
A property was assessed at 25% of value with a tax rate of $12 per hundred. If the taxes totaled $11,400, what was the value?
$380,000
To arrive at this sum, you would divide the total taxes ($11,400) by the rate per hundred ($12) for a total of 950. Multiply that by $100 (remember, the earlier “rate per hundred”) for a total of $95,000, which is 25% of the value. Divide $95,000 by 25% to obtain 100% value, and get the total value of $380,000.
Sydney Blackwell manages an office building with leases of $60,000 per year. Her management agreement is for 7 years, with fees as follows: 7% the first year; 5% the second and third years; and 3 % the remaining years. What will be Sydney’s total management fee?
$17,400;
Commission for each year, as follows: 7% of $60,000 = $4,200; 5% of $60,000 = $3,000, and that multiplied by 2 years at that rate is $6,000; 3% of $6,000 = $1,800 x 4 (years at that rate) = $7,200. Add these totals to reach the total of $17,400.
Several legal steps must sometimes be taken before a creditor can have his outstanding debt satisfied through the sale of the debtor’s property. Which of the following is NOT one of the steps in the process?
Writ of persecution
The current value of a property is $40,000. The property is assessed at 40% of its current value for real estate tax purposes, with an equalization factor of 1.5 applied to the assessed value. If the tax rate is $4 per $100 of assessed, what is the amount of tax due on the property?
$960
First, take $40,000 x .40 = 16,000 x 1.5 = 24,000, then 24,000/100 = 240. Then, 240 x 4 = $960.
A brokerage was paid a commission of 6% of the first $120,000 of the sale price and 4% of everything over $120,000. What would the sale price be if the total commission was $9,000?
answer: $165,000
The broker’s 6% commission came to $7,200 (.06 x $120,000). Subtracted from the total commission of $9,000, it leaves an additional balance of $1,800. Since that portion was paid at the rate of 4%, dividing $1,800 by .04 yields the home’s second cost component of $45,000. Add that to $120,000 and the home’s total selling price was $165,000.
Real Estate Tower has retail space on the first floor, office space on floors 2-17, and residential units on floors 18-35. Real Estate Tower is
a mixed-use development.
Broker Audrey has a listing agreement with seller Scarlett. One of Audrey’s salespeople commits a license law violation while interacting with Scarlett. Audrey
could be responsible due to vicarious liability.
A point, line, or surface from which elevations are measured is known as the:
datum
applies to elevations while ‘points of beginning deal with surface measurements
A portion of a township in the rectangular survey system, which is a square with mile-long sides, is called a:
section
A 3-year straight note was obtained at 10% per year. Interest paid the first two years was $42,000. The loan on the house was 75% of the value. What was the total value of the property?
$280,000
If two years’ interest payments equal $42,000, then one year’s equals $21,000. At 10%, that means the principal balance is $210,000. Additionally, since the loan is for 75% of the home value, divide $210,000 by 0.75 for a total value of $280,000. Universal Statement: From here on out, the T should be used wherever possible.
A lease that goes from month to month is known as
an estate from period to period.
The major intent of zoning regulations is to
ensure the health, safety and welfare of the community.
Which of the following items would MOST likely be enforced by the forced sale of a property?
Judgment
A straight note for $13,400 was executed at 8% annual interest. If the borrower actually paid $3,752 in interest, how many months did he take to pay it off?
42
Kate and Bill secured a loan with a 75% loan-to-value ratio. The interest rate was 7.125% and the term was for 30 years. The first month’s interest payment was $477.82. What was the appraised value of the property?
$107,300
We know that the first month’s interest payment was $477.82, therefore, we can calculate the Annual interest multiplying this first month’s interest payment by 12:
Dividing it by the interest rate (Remember that ), we get:
Finally, since Kate and Bill secured a loan with a 75% loan-to-value ratio, we get:
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The tax rate in Manatee County is 35 mills. How much is this for every $1,000 of assessed value?
$35
Find the capitalization rate on a building that is worth $430,000, and rents for $1,500 a month.
4.19%
A trust deed gives the lender a right to request that the trustee perform certain tasks in order to fulfill the terms of the trust. The trustee may take action in those circumstances because he holds
A) naked title.
Since the trustee in this case is acting on behalf of the true owner of a property, he holds a “naked title,” meaning a title without the usual rights of ownership.
If a house was sold for $40,000 and the buyer obtained an FHA-insured mortgage loan for $38,500, how much money would the buyer pay in discount points if the lender charged four points?
$1540
$38500 x .01 = 385
385 x 4 = $1540
The seller under a land contract is also known as:
the vendor
When a listing on a residential property is signed, which type of agency relationship is usually created?
Special agency
What is the principal federal statute that covers competition and is one of the most important pieces of antitrust legislation?
The Sherman Antitrust Act of 1890
Redlining deals with the conduct of
lending institutions.
If the mortgage loan is 80% of the appraised value of a house, and the interest rate of 8% amounts to $460 interest for the first month, then what is the appraised value of the house?
$86,250
First, you need to figure out the annual interest. $460 x 12 = $5,520 total yearly interest. Now take $5,520/.08 (interest rate) = $69,000 loan. Next, divide $69,000 by 80% for the appraised value of $86,250.
