Maine Real Estate MATH SECTION question n answers 2023/2024

Maine Real Estate MATH SECTION XYZ Realty policy manual shows the following compensation structure: Commission rate charged - 6% to XYZ Realty; 50% to the listing agent. If sold by another company, the commission is split equally. An agent from ABC Realty secured the buyer. Her company policy is, that as the selling agent, she will be paid 40% of her broker's share. If the sales price of the house was $395,000, how much does each party receive? - correct answer $395,000 x 6% = $23,700 Total Commission $23,700 ÷ 2 = $11,850 Split between the two companies $11,850 x 50% = $5,925 to Listing Broker and $5,925 to Listing Agent $11,850 x 60% = $7,110 to Selling Broker $11,850 x 40% = $4,740 to Selling Agent LaBoo's selling expenses were as follows: 7% brokerage commission; $150,000 mortgage payoff; $95 deed preparation; $858 transfer taxes; and since taxes were paid in advance, she received tax credit of $1,325. She left the closing table with a check for $100,047. What was the sale price of the property? - correct answer $268,467.74 The pay check stubs reveal that Mr. Lambert's gross monthly income is $7,000 per month and Mrs. Lambert's gross monthly income is $7,000 per month. One car payment is $450 and the second car payment is $500. Their credit cards payments are $350, $300 and $250. Estimated annual taxes on the house they want to purchase are $5,000 and the homeowner's insurance policy is $750. If they negotiate a conventional loan, what is their maximum principal and interest payment? - correct answer $3,190 Andrea bought a property with a 20% down payment for a 30 year loan at 7% interest. If her first month's interest was $787.50, what was the amount of her loan? - correct answer B. $135,000 The buyer made an offer of 95% of the listed price of $275,000. The offer was accepted and the buyer had a $50,000 down payment. The buyer and seller agreed to split the 3 discount points that was charged on the loan. The buyer paid a 1% origination fee. How much did the buyer pay in points and the origination fee? - correct answer $275,000 x 95% = $261,250 Sale Price $261,250 - $50,000 = $211,250 Loan $211,250 x 3% = $6,337.50 Discount Points $6,337.50 divided by 2 = $3,168.75 Discount Points paid by buyer $211,250 x 1% = $2,112.50 Origination Fee paid by buyer $3,168.75 $2,112.50 = $5,281.25 Fees paid by buyer Ms. Taylor's annual tax bill is $2,340. Properties are assessed at 80% of the market value and the local tax rate is $2.22 per hundred. What is the market value of the property? - correct answer $2.22 divided by $100 = 0.0222 Tax Rate $2,340 Annual Taxes divided by 0.0222 Tax Rate = $105,405.41 Assessed Value $105,405.41 divided by 80% = $131,756.76 Market Value A property sold for $235,349 and the transfer tax was $3.25 per $1,000. How much did the seller pay in transfer taxes? - correct answer $767.00 As a tax unit, a mill is: - correct answer a tenth of a cent. Eighteen months ago Mr. and Mrs. Lambert purchased a home for $750,000. They made $250,000 in renovations, and then Mr. Lambert was transferred. Today, the home sold for $1,100,000 and they paid the brokerage a 5% commission. How much capital gains can they defer? - correct answer They cannot defer any capital gains because they have not owned the property two out of the last five years A 100-acre parcel is to be subdivided. Seventeen percent of the land will be utilized for streets. The lots are 80' x 120'. How many lots will be in the subdivision? - correct answer 376 lots Mr. Jones sold his lot which measures 100' x 125'. If the sale price was $139,000, what was the cost per square foot? - correct answer 100' x 125' = 12,500 square feet $139,000 ÷ 12,500 = $11.12 per square foot Builders' blueprints frequently use the scale of ¼ inch equals 1 foot. A floor plan shows a family room 10½ inches by 3½ inches. How much will it cost to tile the family room if the tile cost at $7.60/square yard? - correct answer ¼ inch = 1 foot, so 1 inch = 4 feet 10.5' x 4' = 42 feet 3.5' x 4' = 14 feet 42 feet x 14 feet = 588 square feet ÷ 9 = 65.33 square yards