unit 1 Flashcards
equation to find part
total x rate
equation to find total
total / rate
equation to find rate
part / total
equation to find interest
part = total x rate x time
equation for linear measurement
area = length x width
equation for linear measurement of a triangle
area = (length x width) / 2
equation for volume
volume = length x width x height
calendar year
365 days
statutory year
30 days month / 360 days a year
Under Texas law, who owns the property on the day of closing, and therefore is responsible for any expenses up to that day (or is owed any rents on a rental property up to that day)?
Under Texas law, the seller owns the property on the day of closing and is responsible for expenses and/or may collect rents.
The seller owes $2,400 in taxes for the current year. With a May 28 closing date and using a calendar year, the seller will be debited how much? (Assume it isNOTa leap year.)
$973.10
The seller wants to net $65,000 from the sale of his house after paying the broker’s fee of 6%. His gross sales price will be
$69,149.
The seller offers to take back a second mortgage of $25,000 at a simple interest rate of 4.5%. The loan is amortized over 10 years. How much is the buyer paying on the second?
$217.70 per month
In 2016, taxes on Don Mark’s home were paid in full and amounted to $1,468. He sold the home to Chuck Harris and closed the sale on August 29, 2017. What was the prorated tax amount, using a statutory year and prorating through the day of closing?
$974.40
How much interest will the seller owe the buyer for a closing date of August 10 if the outstanding loan balance is $43,580? The interest rate on this assumable loan is 10.5% , and the last payment was paid on August 1. Prorations are to be done through the day of closing, using a statutory year.
$127.11
A 100-acre farm is divided into lots for homes. The streets require one-eighth of the whole farm. If there are 140 lots, how many square feet are in each lot?
27,225
If a lender agrees to an $80,000 loan at 9% for 15 years with 2 loan discount points, what amount will be charged at closing for the points?
$1,600
To determine rate when the amounts of the part and the total are known,
divide the part by the total (part ÷ total = rate).
How many square feet are in a right triangle property that is 600 feet at the base and 400 feet on the right side?
120,000 square feet
5% of 1,500 =
75.
What is a loan discount point?
A discount point is an up-front amount paid to the lender that has the effect of lowering a monthly payment.
What is the area of a triangle that is 24 feet by 36 feet?
432 square feet
The listing agent recommends placing a home on the market for $450,000, paying a 6% commission – 2.5% going to the selling (buyer’s) agent. The sellers like the price but refuse to pay more than 5.5% commission (and approve 2.5% to the agent bringing the buyer). Meanwhile, a buyer signs a buyer agent agreement that states the buyer agent’s compensation will be equal to one-half of the total amount of commission paid (a 50-50 commission split). The buyer and the seller negotiate the final sales price at $420,000. How much will the buyer agent receive?
$11,550 ($10,500 from the commission, plus $1,050 from the buyers)
What is the total cost of a driveway that is 15 feet wide, 40 feet long, and 4 inches thick if the concrete costs $60 per cubic yard and the labor costs $1.25 per square foot?
$1,194.00
When computing prorations, Texas-promulgated sales contracts provide that
the seller owns the property on the day of the closing.
The area of what shape is calculated as “base times height divided by two”?
Triangle
Quick percentages: A “fourth” or a “quarter” of something equals
25%.
