Progress Exam 2 Flashcards
Building is sold for $157,000. Brokerage divided 6% commission as follows: 10% to listing salesperson, 1/2 of the balance to the selling person. What is the listing salesperson’s commission?
$157,000 x 6% = $9,420
$9,420 x 10% = $942
What is NOT an advantage of s business leasing commercial space vs buying?
lack of control over rent
Borrower computed the interest charged for the previous month on his $60,000 loan balance as $412.50 what is the borrower’s interest rate?
$412.50 x 12 mo = $4,950 annual
$4,950 / $60,000 = 8.25%
The federal government requires that purchasers of homes built prior to ___ be given a notice that outlines the dangers of ___
1978, lead poisoning
what are the two primary types of property taxes?
special assessment and ad valorem
land contract provides for the
conveyance of legal title at a future date
Plumber did some work on a property and was NOT paid. He discovered that there were already several liens against the property. He then discovered that the owner had another piece of property, which was free from encumbrances. What would be true?
the mechanic’s lien can only be placed on the property where the work was done
How much will the seller net after paying an 8% commission and paying expenses of $1,425 on a property that sold for $180,000?
$180,000 x 8% = $14,400 commission
$180,000 - $14,450 - $1,425 = $164,175
Buyer purchases a home for $90,000 and paid $4,000 as an earnest money deposit, and is obtaining an 80% loan. Costs include $250 for title insurance, recording fees of $60, and a tax proration fee of $430. The buyer will need to bring a check of how much to closing?
$250 + $60 + $430 = $740 fees
$90,000 x 80% = $72,000
$90,000 - 72,000 = $18,000 down payment
$18,000 + 740 - 4,000 = $14,740 check
joint tenancy with right of survivorship may be created
by deed or will
what is an example of ostensible agency?
the principal showed by their actions that the agent’s actions were acceptable
a buyer took delivery of the deed to their new house but forgot to record the deed. Under these circumstances
the buyer’s interest is not fully protected against third parties
Buyer bought a $20,000 property, put down $1,000, 20-year loan at 12% interest. Her monthly payments are $290.38. What is the approximate amount of interest paid on the loan at its maturity?
20 year loan x 12 = 240 months
240 months x $209.38 = $50,251.20
$20,000 - 1,000 down payment = $19,000
$50,251.20 - $19,000 = $31,251.20
What BEST describes the principle that a home maintains its highest value in a neighborhood with similar homes and similar type housing?
conformity
If the buyer defaulted some time ago on a written contract to purchase a seller’s real estate, the seller can still sue for damages if they are not prohibited from doing so by the
statute of limitations
what covenant would NOT be found in a general warranty deed?
restrictive ownership
What is the best way to ensure that there are no encroachments and verify the boundaries of a parcel of land?
get a spot survey
a(n) ___ is a parcel of real property that is owned and occupied as a family home
homestead
Find the annual rate of return of an $88,000 investment if the weekly gross income is $225 and the monthly expense are $370.000
$225 x 52 weeks = $11,700
$370 x 12 mo = $4,440
$11,700 - $4,440 = $7,260
$7,260 / $88,000 = 8.25%
what best describes the purpose of a building permit?
evidence of compliance with municipal regulations
a residential developer’s deed restrictions would probably NOT include
an agreement not to sell without the consent of the neighbors
Listing and selling brokers agree to split a 7% commission 50/50 on a $387,600 sale. The listing broker gives the listing licensee 30% of his commission and the selling broker gives the selling licensee 35% of his commission. How much does the selling licensee earn form the sales?
$387,600 x 7% = $27,132 commission
$27,132 / 2 = $13,566 to each broker
$13,566 x 35% = $4,748.1 to the selling licensee
many states determine the order of water rights according to which users of the water hold a recorded beneficial use permit. This allocation of water rights is determined by
the doctrine of prior appropriation
Total interest paid on a 30-year straight note was $230,000 during the term of the loan. The annual interest rate was 6.6%. What was the loan amount?
$230,000 / 30 years = $7,666 $7,666 / 6.6% = $116,162
a broker representing a selling does NOT owe the purchaser (customer)
assistance in negotiations to purchase ate low the list price
some taxing bodies recognize that local assessments can lead to unfairly high or low value for properties in certain areas. therefore the jurisdiction may establish ____ to level out the unevenness of valuations.
equalization rates
the final valuation process in appraising a duplex would e
reconciliation
what is not a type of nonresidential property?
cooperative
an analysis that results in an opinion of value is
an appraisal
what is an example of ostensible agency?
the principal showed y their actions that the agent’s actions were acceptable
a city took a property through eminent domain so they could build a sports complex and then lease it to 4 private sports franchises. Would this be allowed?
yes, as long as the homeowners were paid compensation for the properties
a house was sold on an installment land contract. there was no mention in the contract about a router top microwave. can the seller take the microwave oven?
yes, because it is personal property
what is true regarding Federal Fair Housing law?
aggrieved parties may appeal to HUD for assistance
$140 is 3.5% of what amount?
$4,000
Buyer received an 80% loan. If the annual interest rate was 4.5% and the monthly interest paid was $790, what was the total sale price?
$790 x 12mo = $9,480
$9,480 x 4.5% = $210,000
$210,000 / 80% = $263,333
If the annual interest rate is 7.5% and the quarterly interest is $562.50, what is the principal amount of the loan?
$562.50 x 4 quarters = $2,250
$2,250 x 7.5% = $30,000
Buyer obtains a $65,000 loan on the home. The principal and interest payments are based on a factor of 8.05 per $1,000. The loan is for 30 years at 9%. How much do they pay in total interest over the life of the loan?
$65,000 per $1,000 = $65 $65 x 8.05 = $523.25 per month 30 year loan x 12 months = 360 months $523.25 x 360 months = $188,370 $188,370 - $65,000 = $123,370
The interest portion of their last monthly payment was $391.42 and their interest rate is 11.5%, what was the outstanding balance of their loan before the last payment was made?
$391.42 x 12 mo = $4,697.04
$4,697.04 / 11.5% = $40,843.83
If a room has measurements of 20ft x 12ft and a height of 8 ft, what is its volume?
Volume = length x width x height V = 20 x 12 x 8 = 1,920 cubic ft
offeree has the right to ___ an offer
reject
If an investment valued at $350,000 returns 12% annually, then what is the amount of income produced by this investment?
$350,000 x 12% = $42,000
in a lease, the lessor’s interest is known as
leased free interest
An $284,000 loan at 5.5% annual interest had principal and interest payments of $1,612.52 per month. How much of the second month’s payment would be applied to the principal?
$284,000 x 5.5% = $15,620 annual
$15,620 / 12 mo = $1,301. 67 monthly
$1,612.52 - $1,301.67 = $310.58 - 1st month
$284,000 - $310.85 = $283,689.15 principal balance at end of 1st month
$283,689.15 x 5.5% = $15,602.90 / 12 = $1,300.24
$1,612.52 - $1,300.24 = $312.28 2nd month
If the assessed valuation of a property is $20,000 with a tax rate of $4.00 per $100, what is the annual tax?
$20,000 / $100 = $200
$200 x $4 = $800 annual tax
a c court order that authorizes and directs the proper officer of the court to sell the property of a defendant as required by the judgement or decree of the court is known as
a writ of execution
