Commissions, prorations, area, LTV, loan payments, closing costs and transfer taxes.
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- What is the formula for calculating a real estate commission?
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Sale price × commission rate = commission amount- A property sells for $250,000 at 6% commission. What is the total commission?
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$250,000 × 0.06 = $15,000- What does LTV stand for in real estate?
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Loan-to-Value- What is the LTV formula?
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Loan amount ÷ property value, or (100% - down payment percentage)- If a home is valued at $300,000 and the buyer puts down $60,000, what is the LTV?
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80% LTV- What is proration?
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Dividing ongoing expenses or income between buyer and seller based on time of ownership- How many days are typically used in proration calculations for licensing exams?
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360 days (12 months × 30 days each)- Annual property taxes are $3,600. What is the monthly tax amount?
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$300- What is amortization?
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The process of paying off a loan through regular payments of principal and interest over time- A property measures 40 feet × 50 feet. What is the square footage?
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2,000 square feet- A property sells for $200,000 and is 2,000 square feet. What is the price per square foot?
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$100 per square foot- What is transfer tax?
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A tax paid when property ownership is transferred from one party to another- How many square feet are in one acre?
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43,560 square feet- Who typically pays for the title insurance premium at closing?
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The seller, though this varies by state and can be negotiated- What type of fees must be recorded with the deed at the county recorder's office?
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Recording fees (charged per page or document by the recorder)
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