FL RE Exam: Practice MATH Questions

A developer sold a lot for $36,000. This represented a loss of 10%. What is the cost of the lot? A. $32,400 B. $39,600 C. $40,000 D. $42,800

C. $40,000 Unit 14 100% cost - 10% loss = selling price 90% = $36,000 $36,000 sale price / .90 = $40,000 cost

The sellers are asking $144,000 for their 1,800-square-foot home. The asking price per square foot is A. $65 B. $76 C. $80 D. $86

C. $80 Unit 16 $144,000 / 1,800 sq ft = $80 per sq ft

An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $334,500 - 45% Weight Comparable 2: $327,500 - 35% Weight Comparable 3: $317,900 - 20% Weight What is the reconciled estimated market value of the subject property? A. $326,633 B. $328,730 C. $332,537 D. $334,500

B. $328,730 Unit 16 $334,500 x .45 = $150,525 $327,500 x .35 = $114,625 $317,900 x .20 = $63,580 $150,525 + $114,625 + $63,580 = $328,730

A house cost $89,500 to build. When new, the building was estimated to have a 50-year useful life. Using straight-line depreciation, what is the accumulated depreciation after four years? A. $1,790 B. $7,160 C. $8,200 D. $8,741

B. $7,160 Unit 16 $89,500 cost / 50-year useful life = $1,790 annual depreciation $1,790 x 4 years = $7,160 accumulated depreciation

What did a new home cost if the state documentary stamp tax on the deed was $546? A. $74,500 B. $78,000 C. $156,000 D. $273,000

B. $78,000 Unit 14 Sales Price / 100 = taxable units (round up) x $0.70 rate = Doc Stamps $546 doc stamps / $0.70 rate x 100 table units = $78,000 sale price

If a capitalization rate of 10.5% is used, what is the market value of an investment property assuming a net income of $8,424? A. $49,371.43 B. $80,228.57 C. $98,057.14 D. $178,285.71

B. $80,228.57 Unit 16 $8,424 net income / .105 rate = $80,228.57 value

The N1/2 of a standard section contains A. 80 acres B. 160 acres C. 320 acres D. 640 acres

C. 320 acres Unit 10 640 acres per section / 2 = 320 acres

A corporation purchased 1,600 acres of Florida ranch land from a foreign seller for $5,600,000. Current law requires the buyer to withhold from the seller and pay to the IRS approximately A. $560,000 B. $840,000 C. $1,120,000 D. $1,400,000

B. $840,000 Unit 18 $5,600,000 x .15 withholding = $840,000 due IRS

A buyer purchased a mobile home appraised at $60,000 with closing costs of $2,500. The loan is for $50,000. If the seller paid a $2,500 discount, how many points were charged by the lender? A. 3 points B. 4 points C. 5 points D. 6 points

C. 5 points Unit 12 $2,500 discount / $50,000 loan = .05 or 5 points

Which property has the highest assessed value? A. Market value $49,500; assessed at 100% of value B. Market value $66,900; assessed at 75% of value C. Market value $81,400; assessed at 60% of value D. Market value $119,600; assessed at 40% of value

B. Market value $66,900; assessed at 75% of value Unit 18 a. $49,500 value x 100% = $49,500 assessed value b. $66,900 value x 75% = $50,175 assessed value c. $81,400 value x 60% = $48,840 assessed value d. $119,600 value x 40% = $47,840 assessed value

The documentary stamp tax charged for a property is $825.30. Calculate the purchase price. A. $57,750 B. $82,500 C. $117,900 D. $195,835

C. $117,900 Unit 14 Sales Price / 100 = taxable units (round up) x $0.70 rate = Doc Stamps $825.30 doc stamps / $0.70 = $1,179 $1,179 x 100 taxable units = $117,900 sales/purchase price

If a parcel described as the S1/2 of the SW1/4 of Section 21 sold for $4,000 per acre, its sale price was A. $160,000 B. $280,000 C. $320,000 D. $640,000

C. $320,000 Unit 10 640 acres per section/2/4 = 80 acres 80 acres x $4,000 per acre = $320,000 sales price

The loan-to-value ratio offered by a local financial institution is 75%. If a buyer wished to acquire a lot selling for $129,500, the buyer will need to make a down payment of A. $1,727 B. $5,180 C. $25,780 D. $32,375

D. $32,375 Unit 12 $129,500 sale price x .25 = $32,375 down payment

A building is valued at $185,000 when NOI is capitalized at a rate of 8% NOI is 40% of effective gross income. Calculate the effective gross income. A. $14,800 B. $24,667 C. $32,000 D. $37,000

D. $37,000 Unit 16 $185,000 x .08 cap rate = $14,800 NOI $14,800 NOI / .40 = $37,000 EGI

A closing date of April 30 is set, with prorations (using the 365-day method) effective at midnight on the day of closing. The property taxes are estimated to be $1,095. What entry is this on the closing disclosure for the seller? A. Debit for $360 B. Debit for $735 C. Credit for $360 D. Credit for $735

A. Debit for $360 Unit 14 31 + 28 + 31 + 30 = 120 seller unpaid days $1,095 / 365 days per year x 120 days = $360 debit

Examination of documentary stamps on recently recorded deeds providing the following sales prices. Data obtained from property managers produced the income figures. Use the information given to determine the correct overall capitalization rate for the comparable apartment properties. (Round all decimals to three numbers before final rounding to two places.) Comparable Properties: Apt Project 1 - NOI $39,400 Sales Price $345,000 Apt Project 2 - NOI $45,680 Sales Price $464,000 Apt Project 3 - NOI $36,800 Sales Price $386,000 Apt Project 4 - NOI $43,790 Sales Price $424,000 A. 9.77% B. 10.25% C. 10.50% D. 11.00%

B. 10.25% Unit 16 Project 1: $39,400 NOI / $345,000 sale price = .114 Project 2: $45,680 NOI / $464,000 sale price = .098 Project 3: $36,800 NOI / $386,000 sale price = .095 Project 4: $43,790 NOI / $424,000 sale price = .103 .114 + .098 + .095 + .103 = .41 .41 / 4 projects = .1025 = 10.25%

The sale price on a home is $180,000. The buyer secured a $140,000 loan and paid $3,200 in closing costs and prepaid expenses. What is the loan-to-value ratio? (Round to the nearest whole percentage point.) A. 76% B. 78% C. 79% D. 80%

B. 78% Unit 12 $140,000 loan/$180,000 sales price = .7778 or 78% LTV

A married couple purchased a home for $287,500, made a down payment of 25%, and secured a new conventional mortgage loan for the balance. Calculate the intangible taxes due. A. $575.00 B. $431.25 C. $251.65 D. $143.75

B. $431.25 Unit 12, 14 $287,500 x .75 LTV ratio = $215,625 mortgage loan $215,625 x .002 rate = $431.25 Intangible tax

A landlord leases 12 apartments in Crow Hollow for a total net monthly rental of $4,800. If this figure represents a 12% annual return on investment, what was the original cost of this property? A. $240,000 B. $480,000 C. $576,000 D. $720,000

B. $480,000 Unit 16 $4,800 monthly net x 12 months = $57,600 annual NOI $57,600 NOI / .12 rate = $480,000 original cost

A licensee has been asked to determine the current market value of a six-year-old building with a reproduction cost of $480,000. When new, the economic life of the structure was estimated to be 40 years. If the site value is known to be $100,000, what is the current market value of the entire property? A. $493,000 B. $508,000 C. $568,000 D. $580,000

B. $508,000 Unit 16 $480,000 reproduction cost / 40 years = $12,000 annual depreciation $12,000 annual depreciation x 6 years = $72,000 accrued depreciation $480,000 - $72,000 depreciation + $100,000 site value = $508,000 market value

An appraiser has been asked to appraise a building lot in a quality subdivision. His research efforts reveal that five lots have been sold in the past four months in the same neighborhood as the subject lot. Sale 1: lot 100' x 130' price $5,600 price per sq ft ____ Sale 2: lot 104' x 132' price $5,800 price per sq ft ____ Sale 3: lot 102' x 130' price $5,600 price per sq ft ____ Sale 4: lot 102' x 130' price $5,600 price per sq ft ____ Sale 5: lot 100' x 132' price $5,400 price per sq ft ____ If the lot being appraised is 110' x 130', what would the total market value be if based on the average price per square foot of the five previous sales, with no adjustments for time or location? A. $5,600 B. $6,023 C. $24,000 D. $32,200

B. $6,023 Unit 16 Sale 1: $5,600 / (100' x 130' = 13,000 sq ft) = $.431 per sq ft Sale 2: $5,800 / (104' x 132' = 13,728 sq ft) = $.422 per sq ft Sale 3: $5,600 / (102' x 130' = 13,260 sq ft) = $.422 per sq ft Sale 4: $5,600 / (102' x 130' = 13,260 sq ft) = $.422 per sq ft Sale 5: $5,400 / (100' x 132' = 13,200 sq ft) = $.409 per sq ft $.431 + $.422 + $.422 + $.422 + $.409 = $2.106 / 5 sales = $.4212 average 110' x 130' = 14,300 sq ft x $.4212 = $6,023 (rounded to the nearest dollar)

A multifamily residential investment property is appraised at $235,000. Land value is 20% of the total appraised value. Calculate the annual depreciation deduction. (Round to the nearest dollar.) A. $6,065 B. $6,836 C. $7,581 D. $8,545

B. $6,836 Unit 18 $235,000 x .80 = $188,000 depreciable basis $188,000/27.5 years = $6,836.36, or $6,836 rounded annual depreciation deduction

What is the cost per acre of a tract of land that sold for $1,306,800 and measures 4,000 feet by 2,000 feet? A. $8,712 per acre B. $7,116 per acre C. $6,246 per acre D. $4,356 per acre

B. $7,116 per acre Unit 10 4,000 ft x 2,000 ft = 8,000,000 sq ft 8,000,000 sq ft /43,560 = 183.65 acres 1,306,800 sales price /183.65 acres = $7,115.71 per acre or $7,116 rounded

A building was sold for $90,000. The buyer paid 10% cash and obtained a loan for the balance. The lending institution charged a 1% loan origination fee. The total cash used by the buyer for this purchase was A. $9,900 B. $9,810 C. $9,000 D. $810

B. $9,810 Unit 12 $90,000 x .10 = $9,000 down payment $90,000 - $9,000 down payment = $81,000 loan $81,000 loan x .01 = $810 loan origination fee $9,000 + $810 = $9,810 total cash

A lot is 180' x 225'. The city is assessing all lot owners on the street based on $24 per foot for paving. The city has agreed to pay 30% of the paving cost. What is the paving assessment for this lot? A. $648 B. $1,296 C. $1,512 D. $3,024

C. $1,512 Unit 18 180' x $24 per foot = $4,320 total paving cost $4,320 x .70 = $3,024 total private share (not paid by city) $3,024 / 2 = $1,512 owner's side of street

An investor owns a business property with a value of $1,500,000. The market capitalization rate is 8%. Operating expenses total 30% of potential gross income. The investment is leveraged with a $1,250,000 mortgage. What is the investor's equity? A. $100,000 B. $120,000 C. $250,000 D. $450,000

C. $250,000 Unit 12 $1,500,000 value - $1,250,000 mortgage = $250,000 equity

A buyer obtains a mortgage loan of $340,000, and the lender agrees to make the loan at 4% interest with buyer to pay 3 points at closing. What is the lender's effective yield on the loan? A. 4.0% B. 4.25% C. 4.375% D. 4.75%

C. 4.375% Unit 12 1 / 8 = .125 x 3 points = 0.3754% + .375 (book is wrong, should be 4%) = 4.375% effective yield Kendra Notes: 1 point = 1/8, so 3 points = 3/8 3 / 8 = .375 4 + .375 = 4.375

A residential zoning category requires at least 15,000 square feet per lot. The developer is reserving 25% of the land to streets, sidewalks, and a community center. The tract of land for development consists of 200 acres. How many residential lots are available for development? A. 145 B. 150 C. 435 D. 580

C. 435 Unit 19 43,560 sq ft per acre x .75 land available for lots = 32,670 sq ft available per acre 32,670 / 15,000 min sq ft per lot = 2.178 lots per acre 2.178 x 200 acres = 435.6 or 435 total subdivision lots

If a building has an estimated economic life of 20 years, the percentage loss of economic life per year is A. 2% B. 4% C. 5% D. 20%

C. 5% Unit 16 100% / 20 years = 5% loss per year

The buyers paid a cash down payment of $55,000 and applied for a $145,000 loan. What is the LTV ratio? A. 27.5% B. 37.9% C. 72.5% D. 80.0%

C. 72.5% Unit 12 $145,000 loan + $55,000 down payment = $200,000 sale price $145,000 / $200.000 = .725 or 72.5% LTV

A broker listed a parcel that measures 891 feet by 440 feet. How many acres are contained in the parcel? A. 4.5 B. 7.25 C. 9 D. 12

C. 9 Unit 10 891 ft x 440 ft = 392,040 sq ft 392,040/43,560 sq ft per acre = 9 acres

An investor originally purchased a new home for $249,000. During the period of ownership, the investor spent $21,000 in capital improvements. The investor sold the home 15 years later for $325,000. The investor paid a brokerage fee of 6% of the sale price and paid out-of-pocket closing costs totaling $3,500. What is the investors capital gain from the sale? A. $32,000 B. $51,500 C. $53,000 D. $78,000

A. $32,000 Unit 18 $325,000 sales price x .06 = $19,500 broker commission $325,000 sales price - $19,500 - $3,500 closing costs = $302,000 amount realized from sale $249,000 purchase price + $21,000 capital improvements = $270,000 adjusted basis $302,000 - $270,000 = $32,000 capital gain

A buyer has made an earnest money deposit of $10,150 on a house selling for $94,500. A local lender has agreed to lend 85% of the selling price at 4 1/2% interest for 30 years. If the buyer's closing costs amount to $1,575, how much more cash must the buyer produce at closing? A. $5,600 B. $7,175 C. $12,889 D. $14,175

A. $5,600 Unit 12 $94,500 x .15 = $14,175 down payment $14,175 + $1,575 closing costs = $15,750 total buyer costs $15,750 - $10,150 earnest money = $5,600 cash at closing

A married couple sign a contract to purchase a $280,000 home and make an earnest money deposit of $5,000. The seller has agreed to pay a 7% commission to the listing broker. The buyers will receive a credit of $2,734 for the seller's portion of the ad valorem taxes. If the buyers obtain an 80% conventional loan at 5% interest with 3 points to be paid by them, how much will be due from the buyers at closing? A. $54,986 B. $56,666 C. $74,586 D. $222,986

A. $54,986 Unit 14 $280,000 x .80 = $224,000 loan amount $224,000 x .03 = $6,720 points $280,000 + $6,720 = $286,720 buyer debits $224,000 loan + $5,000 earnest money deposit + $2,734 tax credit = $231,734 total buyer credits $286,720 - $231,734 = $54,986 due at closing Alternate solution: $280,000 x .80 = $224,000 loan amount $224,000 x .03 = $6,720 points $280,000 = $224,000 = $56,000 down payment $56,000 + $6,720 = $65,720 $65,720 - $5,000 earnest money deposit - $2,734 tax credit = $54,986 due at closing

Some years ago, a couple built their home for $70,000 on a lot that cost them $30,000. If building costs have doubled and lot prices have increased 300%, how much has their original investment of $100,000 appreciated? A. 130% B. 160% C. 260% D. 500%

A. 130% Unit 14 $70,000 home x 2 = $140,000 home value $30,000 lot x 300% = $90,000 amount if increase $140,000 + $90,000 = $230,000 value today Original Cost: $70,000 house + $30,000 lot = $100,000 original cost $230,000 value today - $100,000 cost = $130,000 profit $130,000 profit / $100,000 cost = 1.3 or 130%

What is the FHA housing expense ratio for a borrower with monthly housing expenses of $696, total monthly gross income of $2,400, and total monthly obligations of $960? A. 29% B. 33% C. 38% D. 40%

A. 29% Unit 13 $696 monthly housing expenses + $2,400 monthly gross income - .29 FHA housing expense ratio

A commercial property leases for $200,000 per year. Miscellaneous income derived from the property totals $12,000 per year. The property recently sold for $1,395,000. What is the GIM? A. 6.6 B. 6.8 C. 7.0 D. 7.5

A. 6.6 Unit 16 $200,000 lease income + $12,000 other income = $212,000 total income $1,395,000 / $212,000 total income = 6.58 or 6.6 GIM

If two brokers split the 7% commission 50/50 on a property that sold for $98,400, what did each receive? A. $3,444 B. $4,200 C. $6,888 D. $8,400

A. $3,444 Unit 14 $98,400 x .07 = $6,888 total commission $6,888 / 2 = $3,444 each broker's share

A buyer paid a state intangible tax of $248 on a $155,000 home. What was the mortgage loan amount, and how much was the state documentary stamp tax on the note? A. $124,000 loan amount; $434.00 documentary stamp taxes on the note B. $124,000 loan amount; $542.50 documentary stamp taxes on the note C. $70,857.14 loan amount; $141.71 documentary stamp taxes on the note D. $70,857.14 loan amount; $255.35 documentary stamp taxes on the note

A. $124,000 loan amount; $434.00 documentary stamp taxes on the note Unit 14 $248/.002 rate = $124,000 loan amount $124,000 note/$100 = 1,240 taxable units 1,240 x $.35 = $434.00 documentary stamp taxes on note

An apartment building has eight units, each of which rents for $475 per month. A vacancy rate of 10% persists year after year. Total operating expenses average $1,875 per month. If a capitalization rate of 12% is appropriate, what is the market value of the property? A. $154,500 B. $192,500 C. $342,000 D. $380,000

A. $154,500 Unit 16 $475 rent x 8 units x 12 months = $45,600 PGI $45,600 x .10 = $4,560 vacancy loss $45,600 - $4,560 = $41,040 EGI $41,040 EGI - ($1,875 x 12 months = $22,500 operating expense) = $18,540 NOI $18,540 NOT / .12 cap rate = $154,500 market value

What is the net operating income of a building if the operating expenses are $8,350, the effective gross income is $26,750, and the mortgage payment is $11,100? A. $18,400 B. $11,100 C. $7,300 D. $6,900

A. $18,400 Unit 16 $26,750 EGI - $8,350 operating expense = $18,400 NOI

A seller sold his home and agreed to a June 16, 20XX, closing date. The last day for which interest was paid on the $105,500 remaining balance of the 8%, 30-year conventional mortgage was April 30, 20XX. If the total monthly mortgage payment was $774.14, what amount of prorated mortgage interest would appear on the closing statement as a debit to the seller? (Use the 365-day method of proration and charge the day of closing to the buyer.) A. $1,054.76 B. $1,063.52 C. $1,086.64 D. $1,406.66

B. $1,063.52 Unit 14 Seller owes 31 days in May + 15 days in June = 46 days $105,500 mortgage balance x .08 = $8,440 / 365 = $23.12 interest per day $23.12 x 46 days = $1,063.52 debit

An investor is considering the purchase of an office building. The building has four rentable offices. The operating expenses are $30,000 per year. The investor has $150,000 to invest that she wants to receive a 20% return. What monthly rent must she charge per office to get the desired return? A. $1,500 B. $1,250 C. $800 D. $625

B. $1,250 Unit 16 $150,000 investor funds x .20 return = $30,000 income needed $30,000 + $30,000 operating expenses = $60,000 total needed $60,000 / 12 months = $5,000 per month needed $5,000 / 4 units = $1,250 monthly rent per unit

A home has been assessed by the county property appraiser at $116,000. The property is homesteaded. The city, county, and school board district each charge 10 mills for a total millage rate of 30 mills. How much is saved by the homestead exemption? A. $750 B. $1,250 C. $1,500 D. $3,480

B. $1,250 Unit 18 $50,000 exemption for city and county x .020 mills = $1,000 savings $25,000 exemption for school x .010 mills = $250 savings $1,000 + $250 = $1,250 total savings

The county property appraiser has assigned an assessed value of $117,500. The property is homesteaded. The county charges the following millage rates: city 10 mills, county 10 mils, and school district 6 mills. Calculate the property taxes. A. $1,755 B. $1,905 C. $2,405 D. $2,845

B. $1,905 Unit 18 $117,500 assessed value - $50,000 homestead exemption = $67,500 taxable value for city and county taxes: $67,500 x .020 mills = $1,350 taxes due for city and county taxes $117,500 assessed value - $25,000 homestead exemption = $92,500 taxable value for school board taxes: $92,500 x .006 mills = $555 taxes due for school board $1,350 + $555 = $1,905 total taxes due

The broker agreed to pay his sales associate 45% of the total commission. The property sold for $320,000 and the commission rate was 7%. The property was sold "in house." What was the broker's share of the commission? A. $22,400 B. $12,320 C. $11,200 D. $10,080

B. $12,320 Unit 14 $320,000 sale price x .07 rate = $22,400 total commission 100% - .45 sales associate split = .55 broker's split $22,400 x .55 = $12,320 broker's commission

A single-family residence is available for listing. A comparable home recently sold for $140,000. Compared with the subject property, the comparable has a superior location ($12,500), is smaller ($8,000), and is three years older ($5,000). What is the subject property's value based solely on the information given? A. $139,500 B. $140,500 C. $144,500 D. $157,500

B. $140,500 Unit 16 $140,000 Sales Price - $12,500 location + $8,000 size + $5,000 age = $140,500 adjusted sale price

Closing date is July 8. The buyer is assuming the seller's mortgage loan that has a principal balance of $217,500 at 3 1/2% interest. The day of closing is charged to the buyer. What is the proration and how is it entered on the Closing Disclosure? A. $145.99 credit seller; $145.99 debit buyer B. $145.99 debit seller; $145.99 credit buyer C. $166.85 credit seller; $166.85 debit buyer D. $166.85 debit seller; $166.85 credit buyer

B. $145.99 debit seller; $145.99 credit buyer Unit 14 $217,500 mortgage loan x .035 = $7,612.50 annual interest $7,612.50 / 365 = $20.856164 daily rate of interest $20.856164 x 7 days = $145.99 debit seller; $145.99 credit buyer

A four-year-old, single-family residence is being appraised. The total square footage of the livable area is 2,350. The garage is 600 square feet. According to figures obtained from a cost-estimating service, the base construction cost per square foot of livable area is $59 and $38 per square foot for the garage. What is the reproduction cost new of the structure? A. $138,650 B. $161,450 C. $237,750 D. $322,900

B. $161,450 Unit 16 2,350 sq ft x $59 = $138,650 600 sq ft x $38 = $22,800 $138,650 + $22,800 = $161,450 reproduction cost new

What is the net operating income for a property that produces a potential gross income of $26,750, has fixed operating expenses of $8,350, has a mortgage payment of $11,100, and has a reserve for replacement of $450? A. $6,850 B. $17,950 C. $18,400 D. $19,900

B. $17,950 Unit 16 $26,750 PGI - ($8,350 fixed expense + $450 reserves = $8,800 operating expense) = $17,950 NOI

A home sold for $108,400. The buyers paid $18,400 down, assumed a recorded mortgage of $72,000, and gave the sellers a new second mortgage in the amount of $18,000. How much will the buyers pay for state taxes resulting from these financial arrangements? A. Intangible tax $36; documentary stamp tax $252 B. Intangible tax $36; documentary stamp tax $315 C. Intangible tax $144; documentary stamp tax $230.40 D. Intangible tax $180; documentary stamp tax $63

B. Intangible tax $36; documentary stamp tax $315 Unit 14 Intangible taxes: $18,000 second mortgage (new) x .002 rate = $36 Doc stamps: $72,000 assumed mortgage (existing) + $18,000 second mortgage (new) = $90,000 total loans $90,000 / 100 = 900 taxable units x $0.35 rate = $315 doc stamps on note ??? Why no 0.70 calc ???

A homesteaded property is located in Orange County, Florida. The city tax rate is 8.2 mills, the county tax rate is 8.9 mills, and the school district tax rate is 6.2 mills. The homeowner is a widower and has qualified for homestead exemptions. The home has been assessed at $192,900. What are the property taxes due? A. $2,435.04 B. $2,629.57 C. $3,472.92 D. $3,675.57

C. $3,472.92 Unit 18 $192,900 assessed value - $25,000 base homestead exemption - $500 survivor exemption = $167,400 taxable value for school taxes $167,400 x .0062 mills = $1,037.88 school taxes $192,900 assessed value - $50,000 homestead exemption - $500 survivor exemption = $142,400 taxable value for city and county taxes 8.2 mills city + 8.9 mills county = 17.1 mills $142,400 x .0171 mills = $2,435.04 city and county taxes $1,037.88 + $2,435.04 = $3,472.92 total taxes due

A homesteaded property is located in Ocala, Florida, in Marion County. The city tax rate is 7.2 mills, the county tax rate is 8.1 mills, and the school district tax rate is 5 mills. The homeowner is a blind widow and has qualified for homestead exemption. The home has been assessed at $235,000. What does the property owner owe in property taxes? A. $2,815.20 B. $2,894.65 C. $3,860.20 D. $3,870.35

C. $3,860.20 Unit 18 $235,000 assessed value - $25,000 base homestead exemption - $500 survivor exemption - $500 blind exemption = $209,000 taxable value for school taxes $209,000 x .005 = $1,045 school taxes $235,000 assessed value - $50,000 base homestead exemption - $500 survivor exemption - $500 blind exemption = $184,000 taxable value for city & county taxes 7.2 city + 8.1 county = 15.3 mills $184,000 x .0153 = $2,815.20 city and county taxes $1,045 + $2,815.20 = $3,860.20 total taxes due

An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $319,900 45% weight Comparable 2: $312,500 35% weight Comparable 3: $308,500 20% weight What is the reconciled estimated market value of the subject property? A. $313,633 B. $314,050 C. $315,030 D. $319,900

C. $315,030 Unit 16 $319,900 x .45 = $143,955 $312,500 x .35 = $109,375 $308,500 x .20 = $61,700 $143,955 + $109,375 + $61,700 = $315,030

An appraiser has assigned the following weights to three adjusted sale prices: Comparable 1: $328,900; 40% weight Comparable 2: $322,500; 35% weight Comparable 3: $314,000; 25% weight What is the reconciled estimated market value of the subject property? A. $244,435 B. $321,800 C. $322,935 D. $324,500

C. $322,935 Unit 16 $328,900 x .40 = $131,560 $322,500 x .35 = $112,875 $314,000 x .25 = $78,500 $131,560 + $112,875 + $78,500 = $322,935

Based on the following, what is the estimated market value of a lot 100' x 110' in the Cove Hill subdivision? Comparable Sales Data: Sale 1: lot 100' x 120' adjacent to subject lot, sold one week ago for $36,720 Sale 2: lot 100' x 100' located four blocks away, sold three months ago for $29,800 Sale 3: lot 110' x 110' located on same street, four lots removed, sold two weeks ago for $36,800 Sale 4: lot 90' x 110' across the street, sold one month ago for $29,700 A. $30,130 B. $32,880 C. $33,220 D. $35,400

C. $33,220 Unit 16 Sale 1: $36,720 / (100' x 120' = 12,000 sq ft) = $3.06 per sq ft Sale 2: $29,800 / (100' x 100' = 10,000 sq ft) = $2.98 per sq ft Sale 3: $36,800 / (110' x 110' = 12,100 sq ft) = $3.04 per sq ft Sale 4: $29,700 / (90' x 110' = 9,900 sq ft) = $3.00 per sq ft $3.06 + $2.98 + $3.04 + $3.00 = $12.08 / 4 sales = $3.02 average 100' x 110' = 11,000 sq ft x $3.02 = $33,220 market value

A 10-year-old structure has an effective age of eight years. Total economic life is estimated to be 55 years. Reproduction cost new of the structure is $300,000. What is accrued depreciation for this structure? A. $22,450 B. $35,890 C. $43,500 D. $45,500

C. $43,500 Unit 16 8 years effective age / 55 years economic life = .145 .145 x $300,000 = $43,500 accrued depreciation

A homesteaded property is assessed at $274,500. The millage is 7 mills for county schools and 18 mills for all non-school taxing authorities. What are the property taxes owed on this property? A. $4,041.00 B. $5,612.50 C. $5,787.50 D. $6,862.50

C. $5,787.50 Unit 18 $274,500 assessed value - $25,000 base exemption = $249,500 taxable value x .007 mills = $1,746.50 school taxes $274,500 assessed value - $50,000 = $224,500 taxable value x .018 mills = $4,041 non-school taxes $1,746.50 + $4,041 = $5,787.50 total property taxes due

Monthly mortgage payments of $450 have been paid for 15 years. The original mortgage amount was $45,000. After 15 years, 50% of the loan has been paid. What is the total amount of interest paid to date? A. $6,750 B. $22,500 C. $58,500 D. $60,450

C. $58,500 Unit 13 15 years x 12 payments a year = 180 payments to date $450 x 180 = $81,000 total paid to date $81,000 x .50 = $22,500 principal paid $81,000 - $22,500 = $58,500 interest paid to date

An office building produces and effective gross income of $96,400. Building operating expenses total $36,600, and the monthly mortgage payment is $2,240. What is the building's net operating income? A. $32,920 B. $57,560 C. $59,800 D. $69,520

C. $59,800 Unit 16 $96,400 EGI - $36,600 operating expense = $59,800 NOI

The scheduled date for closing a duplex is June 15. Rent collected on the first of each month is $600 per unit. Day of closing belongs to the buyer. How will the proration be entered on the closing disclosure? A. $320 debit seller; $320 credit buyer B. $600 debit seller; $600 credit buyer C. $640 debit seller; $640 credit buyer D. $640 debit seller; $560 credit buyer

C. $640 debit seller; $640 credit buyer Unit 14 $600 x 2 unites = $1,200 monthly rent $1,200 / 30 days = $40 per day $40 x 16 days belong to the buyer = $640 Proration is entered on the closing document as: $640 debit seller; $640 credit buyer

A sales associate measured the exterior of a home and found it to be 40' x 60'. Disregarding other factors, what is the cost per square foot if the house sold for $202,080? A. $82.35 B. $83.60 C. $84.20 D. $85.50

C. $84.20 Unit 16 40' x 60' = 2,400 sq ft $202,080 sale price / 2,400 sq ft = $84.20 cost per sq foot

A rental house produces $875 per month in gross income. The house costs $113,750. What is the monthly gross rent multiplier? A. .00769 B. 10.83 C. 130 D. 375

C. 130 Unit 16 $113,750 / $875 monthly rent = 130 GRM

A real estate office sold 180 homes this year. This was 20% more sales that last year. How many homes did the office sell last year? A. 140 B. 144 C. 150 D. 154

C. 150 Unit 14 100% + 20% more sales = 180 home sales 120% = 180 180 / 1.20 = 150 home sales last year

The seller wants to net $100,000. If the broker wants to earn 6% commission and the seller's closing costs are estimated at $5,000 (not including commission, for what price MUST the property sell? A. $105,000 B. $111,000 C. $111,383 D. $111,702

D. $111,702 Unit 11 $100,000 net to seller + $5,000 closing costs = $105,000 100% - commission rate (.06) = .94 $105,000 / .94 = $111,702.13 or $111,702 (rounded) sale price

An office that measures 20' x 40' rents for $840 per month. The annual rent per square foot is A. $9.52 B. $10.50 C. $11.43 D. $12.60

D. $12.60 Unit 16 20' x 40' = 800 sq ft $840 monthly rent x 12 months = $10,080 annual rent $10,080 / 800 sq ft = $12.60 per sq foot

A landlord owns an 1,800-square-foot rental house that rents for $.70 per square foot per month. If the GRM (monthly) for that property is 120, what is the market value of the property? A. $105,000 B. $126,450 C. $140,720 D. $151,200

D. $151,200 Unit 16 1,800 sq ft x $.70 = $1,260 monthly rent $1,260 rent x 120 GRM = $151,200 market value

A homesteaded property is located in Jacksonville, Florida, in Duval County. The city tax rate is 8.1 mills, the county tax rate is 8.9 mills, and the school district tax rate is 5 mills. The homeowner is a blind widow and has qualified for homestead exemption. The home has been assessed at $199,000. What are the property taxes owed on this property? A. $2,516 B. $3,256 C. $3,278 D. $3,381

D. $3,381 Unit 18 $199,000 assessed value - $25,000 base homestead exemption - $500 survivor exemption - $500 blind exemption = $173,000 taxable value for school taxes $173,000 x .005 = $865 school taxes $199,000 assessed value - $50,000 base homestead exemption - $500 survivor exemption - $500 blind exemption = $148,000 taxable value for city & county taxes 8.1 city + 8.9 county = 17 mills $148,000 x .017 = $2,516 city and county taxes $865 + $2,516 = $3,381 total taxes due

A buyer applied for a 30-year, fixed rate $105,000 mortgage. The lender will grant the loan if the buyer will pay interest at the rate of 4.5% plus three points and a 1% loan origination fee. What are the total loan charges if the buyer decides to take the loan offer? A. $525 B. $1,444 C. $3,150 D. $4,200

D. $4,200 Unit 12 $105,000 mortgage x .03 points = $3,150 cost of points $105,000 mortgage x .01 = $1,050 loan origination fee $3,150 + $1,050 = $4,200 total loan charges

An investor bought half of a quarter-section of land for $160,000. She plans to develop the property into a residential subdivision. Local zoning will require all lots in the community to be not less than 100' x 120' in size, and the engineering firm employed by the investor has informed her that approximately 484,800 square feet of the tract will be required for parks, streets, storm sewers, and other development purposes. The engineering firm has also estimated that total development costs and associated expenses will amount to five times the raw land costs. The investor wants to make a profit of 10% based on total costs. How much must the investor average per lot to accomplish her profit objective? A. $3,200 B. $3,641 C. $3,840 D. $4,224

D. $4,224 Unit 10, 14 1/2 of a 1/4 section = 640 / 2 / 4 = 80 acres 80 acres x 43,560 sq ft per acre = 3,484,800 sq ft 3,484,800 - 484,800 = 3,000,000 buildable sq ft 3,000,000 / 12,000 sq ft lots = 250 lots $160,000 cost x 5 = $800,000 development cost $160,000 + $800,000 = $960,000 total cost $960,000 x 1.10 profit = $1,056,000 / 250 lots = $4,224 average per lot

While working for a broker, a sales associate acquired a listing for $294,900 at a 6% commission rate. A second sales associate, who works for another brokerage office, found the buyer for the property. The listing and selling brokers agree to a 50-50 split between the two offices. The property sold for $289,000. The selling broker kept 45% of the commission received by the selling office. How much did the selling office's sales associate receive? A. $3,901.50 B. $4,335.00 C. $4,358.00 D. $4,768.50

D. $4,768.50 Unit 14 $289,000 x .06 rate = $17,340 total commission $17,340 x .50 = $8,670 selling office split $8,670 x .55 = $4,768.50 selling sales associate's commission

A buyer is purchasing a home from the seller for $190,000. The buyer gets a first mortgage loan with a loan-to-value ratio of 60%. The seller takes back a purchase money mortgage for 43% of the balance. How much money does the buyer need for a down payment? A. $36,000 B. $49,020 C. $32,680 D. $43,320

D. $43,320 Unit 12 $190,000 purchase price x .60 LTV = $114,000 loan amount $190,000 - $114,000 = $76,000 buyer responsibility $76,000 x .43 = $32,680 purchase money mortgage $114,000 + $32,680 = $146,680 amount financed $190,000 - $146,680 = $43,320 down payment

An apartment building has 10 apartments that rent for $220 per month and six apartments that rent for $185 per month. The building also has four apartments that rent for $35 per week. What is the annual gross rental income? A. $4,700 B. $26,400 C. $39,720 D. $47,000

D. $47,000 Unit 16 $220 rent x 10 units = $2,200 x 12 months = $26,400 income $185 rent x 6 units = $1,110 x 12 months = $13,320 income $35 x 4 units = $140 x 52 weeks = $7,280 income $26,400 + $13,320 + $7,280 = $47,000 gross income

An investor owns a five-unit apartment building. Over a period of time, the investor has found that the expenses to operate the apartment building have averaged 55% of the gross income. If one apartment rents for $920 per month, another for $940 per month, and the remaining three apartments rent for $900 per month each, what are the annual gross and net incomes for the investor's apartment building? A. $4,560 gross income; $2,508 net income B. $4,560 gross income; $2,052 net income C. $54,720 gross income; $30,096 net income D. $54,720 gross income; $24,624 net income

D. $54,720 gross income; $24,624 net income Unit 16 $920 x 12 months = $11,040 $940 x 12 months = $11,280 $900 x 12 months x 3 apartments = $32,400 $11,040 + $11,280 + $32,400 = $54,720 annual gross income $54,720 x .55 = $30,096 operating expenses $54,720 - $30,096 = $24,624 net income

If a $5,600 sale commission is split 60/40 between the listing broker and the selling broker, and each broker splits his share of the commission 50/50 with respective listing and selling sales associates, how much more will the listing broker earn from the sale than the selling broker? A. $3,360 B. $2,240 C. $1,120 D. $560

D. $560 Unit 14 $5,600 x .20 = $1,120 overage to the listing broker's office $1,120 / 2 = $560 the listing broker's overage after split to sales associate

A lot is 73 feet wide and 120 feet deep. What percentage of an acre is this lot? A. .50, or 50% B. .35, or 35% C. .25, or 25% D. .20, or 20%

D. .20, or 20% Unit 10 73 x 120 = 8,760 sq ft 8,760 /43.560 = .20 or 20%

A developer purchased five lots each measuring 110' x 150'. The lots cost $325 per front foot. The developer subdivided the lots into eight lots and then sold them for $28,000 each. How much profit did the developer earn (rounded)? A. 10% B. 15% C. 20% D. 25%

D. 25% Unit 14 110 front feet x $325 per front foot = $35,750 per lot $35,750 x 5 lots = $178,750 total cost of 5 purchased lots 8 lots x $28,000 sale price = $224,000 total received $224,000 received - $178,750 cost = $45,250 made on sale $45,250 made / $178,750 cost = 25.3 or 25% profit

A 43,560 square-foot lot is to be subdivided. One-fourth of the lot is made up of a retaining pond, and one-eighth of the lot will be used for a road. How many square feet of usable area are left? A. 5,445 sq ft B. 10,890 sq ft C. 16,335 sq ft D. 27,225 sq ft

D. 27,225 sq ft Unit 10,14 .25 + .125 = .375 for pond and road 1.0 - .375 = .625 usable area 43,560 sq ft x .625 = 27,225 usable sq ft

A contractor builds a two-story warehouse measuring 120 feet x 150 feet. There is 10% of the space allocated to elevators and landings. The contractor plans to store bins of construction material that each measure 10 feet x 12 feet. How many bins will the building accommodate? A. 120 B. 220 C. 250 D. 270

D. 270 Unit 19 120' x 150' x 2 stories = 36,000 total sq ft 36,000 x .90 = 32,400 sq ft available for bin storage 10' x 12' = 120 sq ft per bin 32,400 sq ft / 120 sg ft = 270 bins

A lot that measures 140' x 160' contains what percentage of an acre? A. 1.94% B. 194% C. .514% D. 51.4%

D. 51.4% Unit 10 140 feet x 160 feet = 22,400 square feet 22,400 / 43,560 square feet per acre = .514 acre x 100% = 51.4%

The borrowers have a combined gross monthly income of $2,350. They have applied for an FHA loan that will require monthly housing expenses of $658. They have other credit obligations of $282 per month. Will they meet the established FHA standards/ratios for housing expenses and total obligations? A. No, their housing expense ratio exceeds FHA maximums B. They meet the housing expense ratio standard but not the total obligations ratio standard C. No, they do not meet either standard/ratio D. Yes, they meet the FHA standards for both ratios

D. Yes, they meet the FHA standards for both ratios Unit 13 FHA allows up to 31% for housing expense ration (HER) FHA allows up to 43% for total obligations ratio (TOR) HER = $658 monthly housing expense / $2,350 monthly gross income = 28% $658 monthly housing expense + $282 other credit obligation = $940 total monthly obligation TOR = $940 total monthly obligation / $2,350 monthly gross income = 40%