An investor buys a property which has a net income of $1,750 per month. It
has a capitalization rate of 14%. What did the investor pay for the property?
Detailed Answer
D
2
Calculate the deed documentary stamp tax on a purchase price of
$325,750.00 with a purchase money mortgage of $250,000.00.
Detailed Answer
C
3
A developer purchases two adjacent lots for $125,000 each. She subdivides
the land into 6 parcels which sell for $50,000 each. What is the developer
percentage of profit?
Detailed Answer
A
4
How much of the 2nd monthly payment will be applied to the principal balance
of a $80,000 mortgage at 7.5% interest for 30 years if each monthly payment is
559.37?
Detailed Answer
B
5
A property closes on June 18, 2001. The ad valorem taxes are $2,200 for the
year. Prorate the taxes for this transaction (day of closing goes to the buyer).
Detailed Answer
B
6
A property price is $300,000 of which $60,000 is allocated to the cost of
land. The property has an economic life of 25 years and an effective age of 5 years.
Given this information and using the straight-line depreciation method, what is the
value of the property?
Detailed Answer
D
7
The property management field has experienced recent growth primarily due to an increase in
Detailed Answer
C. Increase in absentee owners has increased the need for property managers.
8
The geographic area that a real estate broker or sales associate specializes in is called the
Detailed Answer
D. This is an industry term for a geographic area in which a broker or sales associate concentrates his efforts.
9
A unique aspect of business brokerage as opposed to real estate brokerage is the broker’s ability to
Detailed Answer
C. The other tasks are all necessary in any type of real estate or business brokerage.
10
Which of the following is not considered residential property?