Unit 14 - 6 State - Computations and Closing Transactions

Question 1

Unit 14
Percentage profit

Answer 1

amount made on sale / total cost

Question 2

Unit 14
Preclosing inspection also called a

Answer 2

walkthrough

Question 3

Unit 14
How to calculate who owes what for property taxes due Nov 1st during a sales transaction?

Answer 3

At closing, that is a buyer day. Seller pays buyer for the first part of the year that they lived there

Question 4

Unit 14
Prepaid Rent Formula

Answer 4

Rent/number of days in month = daily rental rate

daily rental rate x number of days buyer owns home = amount seller owes the buyer

Question 5

Unity 14
Documentary Stamp Tax on Deeds Formula

Answer 5

sale price / 100 = taxable units (ROUND UP)

taxable units x 0.70 = doc stamp tax on deed

Question 6

Unit 14
Documentary Stamp Tax on Promissory Notes

Answer 6

loan amount / 100 = taxable units (ROUND UP)

taxable units x 0.35 - doc stamp tax on notes

Question 7

Unit 14
Intangible tax on New Mortgages

Answer 7

NEW loan amount x 0.002 = intangible tax

Question 8

Unit 14
Examples of items credited to the seller

Answer 8

purchase price and any prepaid items (HOA fees, already paid for the property tax