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
