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Exam 6: Practical Real Estate Mathematics

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Question 21

Multiple Choice

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An owner neglected to pay property taxes of $900 for the year 20XX. The owner sold the property and escrow closed December 15, 20XX. Using a 30-day month, what would be the normal proration in escrow?

A) debit buyer $412.50
B) debit buyer and credit seller
C) credit seller $312.50
D) debit seller $412.50

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Question 22

Multiple Choice

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A person purchased an undeveloped piece of land on a country road. The land contains a quarter of a quarter of a quarter of a section and the front bordering the road is 435 ft. Approximately how deep is the parcel?

A) 2500 ft.
B) 4000 ft.
C) 1000 ft.
D) 835 ft.

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Question 23

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Two people purchased a home for $360,000. They added a $30,000 pool and patio complex. Five years later, they sold the home for $500,000. What was their annual average rate of appreciation above their cost?

A person borrowed $18,000 for a period of 180 days using a straight note at 10% interest payable monthly. How much total interest will have been paid in 90 days?

An owner decided to list a time share for $87,500. The broker sold the time share for 6% less than the listed price. The commission totaled $6,580. The percentage rate of the commission is:

How much interest will there be in the second payment on a fully amortized loan of $240,000 at 8% interest payable $1,800 per month?

If an investor purchases a mountain ski cabin for $120,000 cash and the monthly net rental income is $600, what is the rate of return on the investment?

Investor purchased 3 lots for a total of $360,000, then resold them for $600,000. Based on cost, what was the percentage of gross profit?

Two acres are being subdivided into 5 equal lots. Each lot has a front set back of 10 feet and is 198 feet wide. What is the buildable area of each lot?

Investor X owns a studio condo that rents for $637.50 per month net after expenses and has a market value of $127,500. Investor Y has a similar condo that rents for a net of $700 per month. Using Investor X's home as a guide, what is the estimated value of Investor Y's condo? (round to nearest $1,000)

Real estate broker José, lists a property for $300,000. A six percent commission is agreed upon. Another agent brings an offer for $280,000. The seller then asks Jose to reduce his side if the commission to two and a half percent. José agrees. What is the difference between the reduction in commission and the original commission that Jose will receive?

A lot is sold for $180,000, making a 20% profit over cost. What was the cost?

Owner has a chance to sell 3 lots for a total sum of $96,000. Selling them separately, the owner will ask $2,000 more for Lot A than Lot B and $8,000 more for Lot B than Lot C. What price will be asked for Lot C?

Four separate co-buyers of a parcel of land signed a deposit receipt contract at different times and places. A copy must be:

To settle the estate of the deceased, a probate sale is held on a mobile home. The first court bid is $30,000. The next minimum bid must be for at least:

Seller is guaranteed a $300,000 net. Seller's closing cost and existing loan total $130,000. If a broker wishes to earn a 10% commission, what must be the selling price?

The law that states real estate contracts must in writing to be enforceable is called the statute of:

An owner sold a mobile home and received $23,500 from escrow. This was the net after paying $240 in expenses plus a 7% commission. What was the selling price?

A builder constructed a home for a cost of $200,000 and wishes to sell it for a profit equal to 20% of the selling price. What is the dollar amount of the profit?

When an offer from a potential buyer is presented to the seller, the seller asks if the buyer is a member of a minority race. The broker presenting the offer should correctly respond as follows: