Chapter 14

A seller netted $55,000 at closing. If the seller paid costs of $1000 and an 8.5% commission, what was the sale price to the nearest dollar?

$55,000 + $1,000 (costs) = $56,000 $56,000 ÷ .915 (100% - 8.5%) = 61,202 $61,202

Documentary Stamps on the Note

$0.35 per $100

Documentary Stamps on the Deed

$0.70 per $100

Taxes are $1,485 for a July 31 closing. Compute the tax proration and show how the proration will appear on the settlement statement. The day of closing belongs to the buyer, and taxes are paid in arrears. Use the 365-day method for prorating.

$1,485 ÷ 365 = $4.07 per day $4.07 x 211 days (January 1 to July 30) = $858.45 Debit seller $858.45, Credit buyer $858.45

A borrower received an 80% conventional loan and paid two discount points. If the points totaled $1,500, what was the sale price?

$1,500 ÷ .02 (points percentage) = $75,000 (loan amount - 80% of sales price) $75,000 ÷ .80 = $93,750 (sale price of the property) $93,750

A property sold for $198,000 with a listing commission of 8%. The selling office is to receive 40% of the total commission. How much will the listing salesperson receive if she is paid 60% of the amount retained by the listing broker?

The listing salesperson will receive $5,702.40 calculated as follows: $198,000 x .08 = $15,840 (total commission) x .60 = $9,504 (listing broker portion) x .60 = $5,702.40 (listing salesperson portion) $5,702.40

Rich and Merle purchase a property for 275,000. They obtain a new 75% loan from the ABC Lending Company. How much was their loan and how would it appear on their settlement statement?

The loan would be $206,250 ($275,000 x .75) and it would be a credit to the buyer. $206,250; credit the buyer.

A seller listed a property for $96,000. The property sold for $94,000. How would the purchase price appear on a full settlement statement?

The sale price of $94,000 would appear on the settlement statement as a credit to the seller and a debit to the buyer. Credit the seller $94,000 and debit the buyer $94,000.

In Florida, the deed of the property is taxed based upon the

The deed of the property is taxed based upon the sale price. sale price.

A 15-acre plot of land sold for $3000 an acre. What is the cost of the deed stamp tax on this property?

The deed stamp cost $315, calculated as follows: $3,000 x 15 = $45,000 (sale price of property). The taxation amount is .70 per $100. $45,000 ÷100 = $450 x .70 = $315. $315

A house sold for $165,000, and the total commission received by the broker was $13,200. What was the rate of commission?

8%

Intangible Tax on New Notes

Note Amount x 0.002

Which of the following statements best describe the purpose of a Closing Disclosure?

The Closing Disclosure is the official settlement statement used by settlement agents and title companies to itemize all charges for a borrower and seller. An official settlement statement used by settlement agents and title companies to itemize all charges for a borrower and seller