Certified General Appraiser Exam Test 2 Questions and Complete Solutions

5% of 1,500 = The answer is 75. To determine a part of a whole, multiply the rate by the total. For example, 5% of 1,500 = 75 (0.05 × 1,500 = 75). This formula is used in calculating mortgage loan interest, brokers' commissions, loan origination fees, discount points, and income on investment property. Remember: MULTIPLY when PART is the UNKNOWN. In 2016, taxes on Don Mark's home were paid in full and amounted to $1,468. He sold the home to Chuck Harris and closed the sale on August 29, 2017. What was the period for which the proration was calculated, using a statutory year and prorating through the day of closing? The answer is 239 days. The seller owes the buyer for taxes from January 1 through August 29. Using a statutory year, each month has 30 days plus the actual number of days used in the month of closing: January + February + March + April + May + June + July = 7 months × 30 days = 210 days + 29 days in August = 239 days in the proration period. The seller and the listing agent agree to put the home on the market for $275,000, and at the same time agree to a 5.25% commission. The buyer and the buyer agent negotiate the home price to $260,000. How much commission is paid? The answer is $13,650. The commission is paid on the negotiated sales price, not the listing price. 260,000 x 0.0525= 13,650 Under Texas law, who owns the property on the day of closing, and therefore is responsible for any expenses up to that day (or is owed any rents on a rental property up to that day)? The answer is under Texas law, the seller owns the property on the day of closing and is responsible for expenses and/or may collect rents. The seller is charged expenses up to and including that day. What is a loan discount point? A discount point is an up-front amount paid to the lender that has the effect of lowering a monthly payment. In 2016, taxes on Don Mark's home were paid in full and amounted to $1,468. He sold the home to Chuck Harris and closed the sale on August 29, 2017. What was the prorated tax amount, using a statutory year and prorating through the day of closing? The answer is $974.40. Step 1: Calculate the charge per day: $1,468 taxes/year ÷ 360 days in a statutory year = $4.077 taxes/day. Step 2: Calculate the period: January + February + March + April + May + June + July = 7 months × 30 days in a statutory month = 210 days + 29 days in August = 239 days in the proration period.