# unit 1 Flashcards

1
Q

equation to find part

A

total x rate

2
Q

equation to find total

A

total / rate

3
Q

equation to find rate

A

part / total

4
Q

equation to find interest

A

part = total x rate x time

5
Q

equation for linear measurement

A

area = length x width

6
Q

equation for linear measurement of a triangle

A

area = (length x width) / 2

7
Q

equation for volume

A

volume = length x width x height

8
Q

calendar year

A

365 days

9
Q

statutory year

A

30 days month / 360 days a year

10
Q

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)?

A

Under Texas law, the seller owns the property on the day of closing and is responsible for expenses and/or may collect rents.

11
Q

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.)

A

\$973.10

12
Q

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

A

\$69,149.

13
Q

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?

A

\$217.70 per month

14
Q

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?

A

\$974.40

15
Q

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.

A

\$127.11

16
Q

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?

A

27,225

17
Q

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?

A

\$1,600

18
Q

To determine rate when the amounts of the part and the total are known,

A

divide the part by the total (part ÷ total = rate).

19
Q

How many square feet are in a right triangle property that is 600 feet at the base and 400 feet on the right side?

A

120,000 square feet

20
Q

5% of 1,500 =

A

75.

21
Q

What is a loan discount point?

A

A discount point is an up-front amount paid to the lender that has the effect of lowering a monthly payment.

22
Q

What is the area of a triangle that is 24 feet by 36 feet?

A

432 square feet

23
Q

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?

A

\$11,550 (\$10,500 from the commission, plus \$1,050 from the buyers)

24
Q

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?

A

\$1,194.00

25
Q

When computing prorations, Texas-promulgated sales contracts provide that

A

the seller owns the property on the day of the closing.

26
Q

The area of what shape is calculated as “base times height divided by two”?

A

Triangle

27
Q

Quick percentages: A “fourth” or a “quarter” of something equals

A

25%.