c. This is an example of regression, an external factor, caused by the lower priced homes in the area. External factors are always incurable.
c. HUD’s penalty for a first offense can be $10,000. The Justice Department may fine for a pattern of repeat violations up to $100,000.
d. All of the items are examples of escrow monies.
b. Convert 80% to a decimal and multiply. $250,000 × .80 = $200,000 loan amount. Convert 3% to a decimal and multiply. $200,000 × .03 = $6,000 cost of points.
d. Convert 90% to a decimal and multiply. $82,000 × .90 = $73,800 loan amount; $4.30 ÷ 100 = $.0430; $73,800 × $.0430 = $3,173.40 annual taxes.
d. The gross income multiplier (GIM) is found by dividing the sales price by the gross annual income; $888,000 ÷ $136,000 = 6.529, rounded to 6.53.
b. Either party is permitted to attempt to renegotiate the terms of the transaction.
c. The Fair Housing Amendments Act of 1988 added the presence of children in a family as a protected class.
d. A property’s net operating income is derived by first estimating its potential gross income, then deducting estimated vacancy and collection losses to derive effective gross income, and finally subtracting yearly operating expenses from effective gross income.
a. Under the police powers given by the state, local jurisdictions regulate and control the use of the land through enacting and enforcing zoning laws. These laws also address issues such as building heights and setbacks.
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