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