real estate (Ohio)

Question 1

who put the canon of ethics into law? the real estate commission or the board of real estate?

Answer 1

real estate commission

Question 2

canon of ethics

Answer 2

prompt you to act honesty and not deceive clients

Question 3

how much is the real property transfer fee/conveyance fee?

Answer 3

1 mill (1$ per $1000 of the value of the property sold)

Question 4

sellers net proceeds

Answer 4

home sale price - (title insurance + conveyance fees + commission + other sellers fees)

Question 5

prorations

Answer 5

division of expenses btw buyer and seller

Question 6

in order to calculate property tax, you have to know… (3)

Answer 6

1. market value of property
2. assessment ratio
3. millage (1$/$1000 or 0.001)

ex. market value = $100,000
assessment ratio = 35%
100,000*0.35 =35,000
35000/1000 =35

Question 7

capitalization rate

Answer 7

NOI/value

Question 8

equity formula

Answer 8

market value - (mortgage + other liens)

Question 9

loan to value (LTV) ratio

Answer 9

loan amt/property value

Question 10

loan origination fee

Answer 10

charged at close of loan

Question 11

how to calculate maximum monthly PITI

Answer 11

monthly income0.28
OR
(monthly income0.36)-other loan payments

Question 12

PITI is calculated by…

Answer 12

adding principle+interest+taxes+insurance