COLIBRI REAL ESTATE RELIABLE EXAM ACTUAL TEST PAPER QUESTIONS CORRECT
ANSWERS GRADED A PLUS
Colibri REAL Estate Reliable EXAM 2026/2027
Questions and Answers Verified Solutions Latest
Update
Question:
Answer:
Brian attends his real estate company's party and, after having a few too many cocktails, drives
home. He is pulled over and arrested for driving under the influence. Two months later Brian is
convicted and serves a year of probation and pays a fine. Brian does not notify the regulatory agency
of this conviction. Which best describes this situation? - ✔✔Brian may be punished for not
disclosing the conviction Failing to notify a regulatory agency of the conviction is a violation. ✔✔A
rental property has a return rate of 8%. The monthly net rental is $600. What is the market value of
the property? - ✔✔$90,000 Rate of return is computed by dividing the annual net income by the rate
of return. In this case, multiply the monthly $600 income by 12 to get the annual income. The gross
annual income, $7,200, divided by 8%, is $90,000. ✔✔In most states, the listing broker has a
fiduciary duty to the - ✔✔client A broker has a fiduciary duty to the client, while the broker's
salespeople have a duty to the broker. ✔✔While determining the net operating income of an
investment property, an appraiser will not take into account - ✔✔interest expense Although tax
deductible, the amount of interest an owner pays is not used to calculate the net operating income.
Remember, anything related to debt service is an owner's expense. ✔✔After listing a property that
the agent believes is overpriced, the agent returns to the office and vents his frustration to a fellow
licensee at the brokerage. Which duty has the agent breached? - ✔✔loyalty If an agent decides to
take the listing at the price indicated by the seller, the agent must be loyal to the seller and not imply
that the list price is unreasonable. ✔✔The property sale will close on April 15, 2010. Taxes are
$4,300 per year and are paid through December 2009. Calculate the seller's share of taxes using a
calendar year (365 days). - ✔✔$1,236.98 There isn't really a formula for calculating prorations.
First, calculate a cost per day, then determine the number of days in which taxes haven't been paid,
and then multiply the number of days by the daily tax rate. Substitute numbers for the known factors
in the formula. Step 1: Determine the Daily Tax Rate: $4, = $11.7808; Step 2: Determine
the Number of Days: January 31 + February 28 + March 31 + April 15 = 105; Step 3: Determine
Amount Owed: 105 days x $11.7808 per day = $1,236.984. The seller owes $1,236.98 in taxes.
✔✔Which of the following statements is true regarding real estate trust accounts in Georgia? -
✔✔A broker may have multiple trust accounts as long as each is registered with the Real Estate
Commission Interest-bearing trust accounts are permitted as long as the contract states that the
designated trust money will be held in an interest-bearing account as well as to whom the interest
will be paid. Trust money must be held in a separate FDIC insured "trust account." A broker is not
,limited to the number of trust accounts he or she may open as long as each account number and bank
account name is provided to the Commission. ✔✔The real estate closing date is May 25. The lender
uses a 360-day calendar for interest proration and payments are due on the 15th day of each month.
The loan balance is $84,000 with an interest rate of 8%. How much accrued interest will the seller
owe at closing? - ✔✔$186.67 The 360-day calendar assumes every month has 30 days. $84,000 x
8% = $6,720 for the total interest by year. $6,720 divided by 12 = $560 for the interest per month.
$560 divided by 30 days = 18.6666 for the interest per day. 10 x 18.6666 = 186.67 for the interest
for 10 days. ✔✔All of the following are true about a CAM license in Georgia EXCEPT: - ✔✔It
allows the licensee to manage residential and condominium communities as well as provide real
estate services to homebuyers and sellers The holder of a CAM license must satisfy license law
education and exam requirements. The license only permits the holder to engage in community
management activities. The license may be acquired without holding a salesperson's license but a
salesperson or broker might additionally acquire the CAM license. ✔✔Which of the following
property legal descriptions is NOT used in Georgia? - ✔✔Rectangular survey system The metes and
bounds system and lot, block system are the only two legal descriptions for property used in
Georgia. ✔✔The Real Estate Settlement Procedures Act (RESPA) is administered by the -
✔✔Department of Housing and Urban Development HUD administers RESPA rules and
compliance. The Division of Real Estate regulates real estate professionals. ALTA regulates title
companies. NAR promulgates a code of ethics. ✔✔Which of the following statements is true
concerning Georgia's Real Estate Commissioner? - ✔✔The Commissioner is hired by the Real
Estate Commission If the Commissioner or any of the Commissioner's staff holds a real estate
license, it must be placed on inactive status. The Commissioner is not a member of the Real Estate
Commission, but is hired by the Commission. ✔✔A property generated $135,000 income per year.
A vacancy and collection loss of 5% is normal for the area. The building expenses are $8500. What
was the gross income? - ✔✔$135,000 Gross income is the total amount a property generates in
income before expenses are removed. ✔✔The agreement of sale should provide that if the property
is damaged or destroyed by fire before the deal is consummated, the loss will fall upon the - ✔✔the
seller The "risk of loss" is transferred to the buyer upon the signing of the sales contract. Thus, the
sales contract should include a clause that would keep the risk of loss on the seller and require the
seller to maintain insurance. If this clause were not inserted in the sales contract, then the buyer
would be responsible for any damage to the property and still have to buy the property, regardless of
condition. ✔✔A lead-based paint disclosure form is required for all residential dwellings built
before January 1, 1978. When applicable, who must sign the form? - ✔✔buyer, seller, and both
agents All parties must sign the disclosure form. Both agents are equally liable for compliance.
✔✔A legal property description in Georgia that identifies boundaries and is commonly used to
survey property is known as: - ✔✔System of metes and bounds The principal method of delineating
property boundaries for surveys and creating a legal description for property in Georgia is called the
metes and bounds system. The short form, also known as lot, block system, is the other acceptable
legal description for property in Georgia. ✔✔What is an involuntary specific lien? - ✔✔mechanic's
lien The IRS lien is a general involuntary lien against all items owned by an individual (including,
but not limited to, real estate). The mechanic's lien is an involuntary specific lien against property
worked on by a contractor. The mortgage is a voluntary specific lien given freely by the landowner
,to the buyer. The easement is not a lien, although it is an encumbrance on the property. ✔✔Which
statement is TRUE? - ✔✔You receive stock in a cooperative and a deed in a condominium
Condominium owners receive a deed and cooperative owners buy stock and receive a proprietary
lease. ✔✔What is the gross commission on a property that sold for $450,000 with a rate of
commission of 6%? - ✔✔$27,000 $450,000 x.06 = $27,000 ✔✔Which would be an example of
voluntary alienation? - ✔✔sale Eminent domain is the government's right to take private property
with just compensation and is an involuntary transfer of title. Escheat is when one dies without a
will and without heirs, so title involuntarily transfers to the state. Adverse possession is acquiring
someone else's title through open notorious, exclusive, and continuous use of the property (also
involuntary). The sale of property is usually a voluntary event. ✔✔At a listing appointment, Patty
promises the sellers they will get four open houses a month. The seller signs the agreement. In the
first month of marketing, Patty's husband becomes ill and Patty cancels the open house. The seller
got only two open houses that month. Which best describes the situation? - ✔✔Patty is breaching
her broker's duty of accountability Agents are accountable to the client for their actions. If the seller
was promised four open houses a month, that is what the seller should get. ✔✔Regarding the
handling of earnest money in a Georgia real estate contract, which of the following is true? -
✔✔The amount of earnest money and who will hold these funds is determined by contract
agreement Items other than legal tender (money) may suffice as earnest money as long as the item is
identified and assigned a monetary value in writing. Earnest money may be held by whomever is
contractually agreed upon, including either the listing broker or the selling broker. If earnest money
is deposited in an interest-bearing trust account, then all parties to the contract must agree in writing
as to who receives the interest earned. ✔✔What purpose does the Superfund serve? - ✔✔It allows
the EPA to clean up abandoned waste sites and requires the responsible party to cover the costs of
doing so The Clean Water Act deals with water quality. The Clean Air Act prevents air pollution.
The Lead-Based Paint Hazard Reduction Act prevents lead poisoning. The Superfund allows the
EPA to clean up such sites and compels responsible parties to perform clean ups or reimburse the
government for EPA clean ups. ✔✔A broker has a policy that agents will not be dual agents in
in-company transactions or when the agents sell their own listings. Which would a potential buyer
be to the listing agent if the buyer wants to buy the agent's listing? - ✔✔customer A dual agent is a
broker or salesperson who represents both buyer and seller. A client is a party represented by a
broker. An agent is someone a client hires to represent them like a broker. The customer is the party
in the transaction that is not represented. ✔✔Seller and buyer entered into an instrument of
conveyance in which the buyer immediately received legal title. Which instrument would have been
used by the parties? - ✔✔deed An offer cannot become a contract until the offer is accepted. An
option may never be exercised. A land contract only conveys equitable title. A deed is the
instrument that conveys legal title. ✔✔An attorney refers a friend looking to purchase a home to a
broker. Subsequently, the broker contacts the attorney's friend and assists in finding a property for
the friend to buy. At what point might the broker be allowed to compensate the attorney for the
referral? - ✔✔At no time License law in Georgia allows a broker to pay a referral fee ONLY to
another real estate broker. ✔✔A real estate listing is an agreement between - ✔✔seller and broker
The listing agreement is an agreement between broker and seller; the broker is entitled to a
commission when a ready, willing, and able buyer makes an offer acceptable to the seller.
, ✔✔Executor Fred calls Agent Tom to list a vacant tract of land, instructing him to list the land for
$700,000. Several weeks later, Agent Tom becomes aware of a developer who would pay as much
as $1,000,000 for the property. Tom thereupon submits a full-price offer to the owner and purchases
the property. Tom then resells the property to the developer and pockets a $300,000 profit. Which
statement is TRUE? - ✔✔Tom violated the law by not providing notice of information that would
affect Fred Tom had a duty to inform Fred of the true value of the property. This would be known as
self-dealing. ✔✔Point of beginning refers to - ✔✔the first corner of the parcel to be surveyed. The
point of beginning is where a metes and bound description starts and ends. ✔✔An individual has
operated a service station in Georgia for years, in an area recently rezoned for residential use. After
the gas station was virtually demolished by a severe storm, what would be true? - ✔✔The owner
could only rebuild the gas station if the location was spot zoned for commercial use or if the owner
was granted a variance Under these circumstances, the owner had been operating the service station
under non-conforming use; when the property was destroyed, it would have to be rebuilt to comply
with current zoning laws, unless the location was spot zoned for commercial or the owner was
granted a variance from the zoning board. The owner would not be entitled to compensation for the
loss of the business. ✔✔Who is NOT an agent or subagent? - ✔✔a non-licensed personal assistant
of an agent A broker, property manager, and salesperson would either be considered an agent, or
subagent. An unlicensed assistant can only do administrative tasks for the agent. ✔✔With the
intention of offering a homebuyer some assurances about the physical condition of the property
under contract, the customary residential sales agreement form in Georgia makes the buyer's
contract commitment contingent on a(n): - ✔✔Inspection by a qualified home inspector Although
many contingencies may be a part of any real estate sales contract, the standard Georgia real estate
contract includes a home inspection contingency that specifically affords the buyer some degree of
confidence regarding the structural condition of the property. ✔✔A section of a township contains -
✔✔640 Acres An acre contains 43,560 square feet, which is equal to 160 square rods. A mile
contains 5,280 feet, which is equal to 1,760 yards, or 320 rods. Each township contains 36 sections.
Each section is one square mile, or 640 acres. ✔✔Taking measures to reduce adverse impacts on the
environment is known as - ✔✔mitigation Minimization is a comprehensive program to minimize or
eliminate wastes. Mitigation is the measures taken to reduce adverse impacts on the environment.
Microbial growth is the amplification or multiplication of micro-organisms. A mobile incinerator
system is the hazardous waste incinerator that can be transported from one site to another. ✔✔After
a mortgage foreclosure sale in Georgia, how long does the defaulted borrower have to redeem the
property? - ✔✔There is no redemption period in Georgia after the foreclosure sale In Georgia, the
period for redeeming a property in default, called equity of redemption, does not extend beyond the
foreclosure sale, which, if allowed, is called statutory equity of redemption. ✔✔Bob and Janice
want to obtain a loan to buy a new home. Their combined monthly income is $7,500. What amount
of monthly payment can they qualify for if the lender uses 28/36 ratios and they have no other debt?
- ✔✔$2100 To calculate the maximum monthly payment they can qualify for, use the qualifying
formula: Part (Allowable payment amount) = Percent (Ratio) x Whole (Income). Insert the known
variables, Part = 0.28 x $7,500 and calculate. The maximum monthly payment Bob and Janice can
qualify for is $2,100. ✔✔A real estate agent forms an LLC. While previewing the new listings on
the market the agent sees a bank-owned listing priced to sell quickly. The agent writes an offer on
ANSWERS GRADED A PLUS
Colibri REAL Estate Reliable EXAM 2026/2027
Questions and Answers Verified Solutions Latest
Update
Question:
Answer:
Brian attends his real estate company's party and, after having a few too many cocktails, drives
home. He is pulled over and arrested for driving under the influence. Two months later Brian is
convicted and serves a year of probation and pays a fine. Brian does not notify the regulatory agency
of this conviction. Which best describes this situation? - ✔✔Brian may be punished for not
disclosing the conviction Failing to notify a regulatory agency of the conviction is a violation. ✔✔A
rental property has a return rate of 8%. The monthly net rental is $600. What is the market value of
the property? - ✔✔$90,000 Rate of return is computed by dividing the annual net income by the rate
of return. In this case, multiply the monthly $600 income by 12 to get the annual income. The gross
annual income, $7,200, divided by 8%, is $90,000. ✔✔In most states, the listing broker has a
fiduciary duty to the - ✔✔client A broker has a fiduciary duty to the client, while the broker's
salespeople have a duty to the broker. ✔✔While determining the net operating income of an
investment property, an appraiser will not take into account - ✔✔interest expense Although tax
deductible, the amount of interest an owner pays is not used to calculate the net operating income.
Remember, anything related to debt service is an owner's expense. ✔✔After listing a property that
the agent believes is overpriced, the agent returns to the office and vents his frustration to a fellow
licensee at the brokerage. Which duty has the agent breached? - ✔✔loyalty If an agent decides to
take the listing at the price indicated by the seller, the agent must be loyal to the seller and not imply
that the list price is unreasonable. ✔✔The property sale will close on April 15, 2010. Taxes are
$4,300 per year and are paid through December 2009. Calculate the seller's share of taxes using a
calendar year (365 days). - ✔✔$1,236.98 There isn't really a formula for calculating prorations.
First, calculate a cost per day, then determine the number of days in which taxes haven't been paid,
and then multiply the number of days by the daily tax rate. Substitute numbers for the known factors
in the formula. Step 1: Determine the Daily Tax Rate: $4, = $11.7808; Step 2: Determine
the Number of Days: January 31 + February 28 + March 31 + April 15 = 105; Step 3: Determine
Amount Owed: 105 days x $11.7808 per day = $1,236.984. The seller owes $1,236.98 in taxes.
✔✔Which of the following statements is true regarding real estate trust accounts in Georgia? -
✔✔A broker may have multiple trust accounts as long as each is registered with the Real Estate
Commission Interest-bearing trust accounts are permitted as long as the contract states that the
designated trust money will be held in an interest-bearing account as well as to whom the interest
will be paid. Trust money must be held in a separate FDIC insured "trust account." A broker is not
,limited to the number of trust accounts he or she may open as long as each account number and bank
account name is provided to the Commission. ✔✔The real estate closing date is May 25. The lender
uses a 360-day calendar for interest proration and payments are due on the 15th day of each month.
The loan balance is $84,000 with an interest rate of 8%. How much accrued interest will the seller
owe at closing? - ✔✔$186.67 The 360-day calendar assumes every month has 30 days. $84,000 x
8% = $6,720 for the total interest by year. $6,720 divided by 12 = $560 for the interest per month.
$560 divided by 30 days = 18.6666 for the interest per day. 10 x 18.6666 = 186.67 for the interest
for 10 days. ✔✔All of the following are true about a CAM license in Georgia EXCEPT: - ✔✔It
allows the licensee to manage residential and condominium communities as well as provide real
estate services to homebuyers and sellers The holder of a CAM license must satisfy license law
education and exam requirements. The license only permits the holder to engage in community
management activities. The license may be acquired without holding a salesperson's license but a
salesperson or broker might additionally acquire the CAM license. ✔✔Which of the following
property legal descriptions is NOT used in Georgia? - ✔✔Rectangular survey system The metes and
bounds system and lot, block system are the only two legal descriptions for property used in
Georgia. ✔✔The Real Estate Settlement Procedures Act (RESPA) is administered by the -
✔✔Department of Housing and Urban Development HUD administers RESPA rules and
compliance. The Division of Real Estate regulates real estate professionals. ALTA regulates title
companies. NAR promulgates a code of ethics. ✔✔Which of the following statements is true
concerning Georgia's Real Estate Commissioner? - ✔✔The Commissioner is hired by the Real
Estate Commission If the Commissioner or any of the Commissioner's staff holds a real estate
license, it must be placed on inactive status. The Commissioner is not a member of the Real Estate
Commission, but is hired by the Commission. ✔✔A property generated $135,000 income per year.
A vacancy and collection loss of 5% is normal for the area. The building expenses are $8500. What
was the gross income? - ✔✔$135,000 Gross income is the total amount a property generates in
income before expenses are removed. ✔✔The agreement of sale should provide that if the property
is damaged or destroyed by fire before the deal is consummated, the loss will fall upon the - ✔✔the
seller The "risk of loss" is transferred to the buyer upon the signing of the sales contract. Thus, the
sales contract should include a clause that would keep the risk of loss on the seller and require the
seller to maintain insurance. If this clause were not inserted in the sales contract, then the buyer
would be responsible for any damage to the property and still have to buy the property, regardless of
condition. ✔✔A lead-based paint disclosure form is required for all residential dwellings built
before January 1, 1978. When applicable, who must sign the form? - ✔✔buyer, seller, and both
agents All parties must sign the disclosure form. Both agents are equally liable for compliance.
✔✔A legal property description in Georgia that identifies boundaries and is commonly used to
survey property is known as: - ✔✔System of metes and bounds The principal method of delineating
property boundaries for surveys and creating a legal description for property in Georgia is called the
metes and bounds system. The short form, also known as lot, block system, is the other acceptable
legal description for property in Georgia. ✔✔What is an involuntary specific lien? - ✔✔mechanic's
lien The IRS lien is a general involuntary lien against all items owned by an individual (including,
but not limited to, real estate). The mechanic's lien is an involuntary specific lien against property
worked on by a contractor. The mortgage is a voluntary specific lien given freely by the landowner
,to the buyer. The easement is not a lien, although it is an encumbrance on the property. ✔✔Which
statement is TRUE? - ✔✔You receive stock in a cooperative and a deed in a condominium
Condominium owners receive a deed and cooperative owners buy stock and receive a proprietary
lease. ✔✔What is the gross commission on a property that sold for $450,000 with a rate of
commission of 6%? - ✔✔$27,000 $450,000 x.06 = $27,000 ✔✔Which would be an example of
voluntary alienation? - ✔✔sale Eminent domain is the government's right to take private property
with just compensation and is an involuntary transfer of title. Escheat is when one dies without a
will and without heirs, so title involuntarily transfers to the state. Adverse possession is acquiring
someone else's title through open notorious, exclusive, and continuous use of the property (also
involuntary). The sale of property is usually a voluntary event. ✔✔At a listing appointment, Patty
promises the sellers they will get four open houses a month. The seller signs the agreement. In the
first month of marketing, Patty's husband becomes ill and Patty cancels the open house. The seller
got only two open houses that month. Which best describes the situation? - ✔✔Patty is breaching
her broker's duty of accountability Agents are accountable to the client for their actions. If the seller
was promised four open houses a month, that is what the seller should get. ✔✔Regarding the
handling of earnest money in a Georgia real estate contract, which of the following is true? -
✔✔The amount of earnest money and who will hold these funds is determined by contract
agreement Items other than legal tender (money) may suffice as earnest money as long as the item is
identified and assigned a monetary value in writing. Earnest money may be held by whomever is
contractually agreed upon, including either the listing broker or the selling broker. If earnest money
is deposited in an interest-bearing trust account, then all parties to the contract must agree in writing
as to who receives the interest earned. ✔✔What purpose does the Superfund serve? - ✔✔It allows
the EPA to clean up abandoned waste sites and requires the responsible party to cover the costs of
doing so The Clean Water Act deals with water quality. The Clean Air Act prevents air pollution.
The Lead-Based Paint Hazard Reduction Act prevents lead poisoning. The Superfund allows the
EPA to clean up such sites and compels responsible parties to perform clean ups or reimburse the
government for EPA clean ups. ✔✔A broker has a policy that agents will not be dual agents in
in-company transactions or when the agents sell their own listings. Which would a potential buyer
be to the listing agent if the buyer wants to buy the agent's listing? - ✔✔customer A dual agent is a
broker or salesperson who represents both buyer and seller. A client is a party represented by a
broker. An agent is someone a client hires to represent them like a broker. The customer is the party
in the transaction that is not represented. ✔✔Seller and buyer entered into an instrument of
conveyance in which the buyer immediately received legal title. Which instrument would have been
used by the parties? - ✔✔deed An offer cannot become a contract until the offer is accepted. An
option may never be exercised. A land contract only conveys equitable title. A deed is the
instrument that conveys legal title. ✔✔An attorney refers a friend looking to purchase a home to a
broker. Subsequently, the broker contacts the attorney's friend and assists in finding a property for
the friend to buy. At what point might the broker be allowed to compensate the attorney for the
referral? - ✔✔At no time License law in Georgia allows a broker to pay a referral fee ONLY to
another real estate broker. ✔✔A real estate listing is an agreement between - ✔✔seller and broker
The listing agreement is an agreement between broker and seller; the broker is entitled to a
commission when a ready, willing, and able buyer makes an offer acceptable to the seller.
, ✔✔Executor Fred calls Agent Tom to list a vacant tract of land, instructing him to list the land for
$700,000. Several weeks later, Agent Tom becomes aware of a developer who would pay as much
as $1,000,000 for the property. Tom thereupon submits a full-price offer to the owner and purchases
the property. Tom then resells the property to the developer and pockets a $300,000 profit. Which
statement is TRUE? - ✔✔Tom violated the law by not providing notice of information that would
affect Fred Tom had a duty to inform Fred of the true value of the property. This would be known as
self-dealing. ✔✔Point of beginning refers to - ✔✔the first corner of the parcel to be surveyed. The
point of beginning is where a metes and bound description starts and ends. ✔✔An individual has
operated a service station in Georgia for years, in an area recently rezoned for residential use. After
the gas station was virtually demolished by a severe storm, what would be true? - ✔✔The owner
could only rebuild the gas station if the location was spot zoned for commercial use or if the owner
was granted a variance Under these circumstances, the owner had been operating the service station
under non-conforming use; when the property was destroyed, it would have to be rebuilt to comply
with current zoning laws, unless the location was spot zoned for commercial or the owner was
granted a variance from the zoning board. The owner would not be entitled to compensation for the
loss of the business. ✔✔Who is NOT an agent or subagent? - ✔✔a non-licensed personal assistant
of an agent A broker, property manager, and salesperson would either be considered an agent, or
subagent. An unlicensed assistant can only do administrative tasks for the agent. ✔✔With the
intention of offering a homebuyer some assurances about the physical condition of the property
under contract, the customary residential sales agreement form in Georgia makes the buyer's
contract commitment contingent on a(n): - ✔✔Inspection by a qualified home inspector Although
many contingencies may be a part of any real estate sales contract, the standard Georgia real estate
contract includes a home inspection contingency that specifically affords the buyer some degree of
confidence regarding the structural condition of the property. ✔✔A section of a township contains -
✔✔640 Acres An acre contains 43,560 square feet, which is equal to 160 square rods. A mile
contains 5,280 feet, which is equal to 1,760 yards, or 320 rods. Each township contains 36 sections.
Each section is one square mile, or 640 acres. ✔✔Taking measures to reduce adverse impacts on the
environment is known as - ✔✔mitigation Minimization is a comprehensive program to minimize or
eliminate wastes. Mitigation is the measures taken to reduce adverse impacts on the environment.
Microbial growth is the amplification or multiplication of micro-organisms. A mobile incinerator
system is the hazardous waste incinerator that can be transported from one site to another. ✔✔After
a mortgage foreclosure sale in Georgia, how long does the defaulted borrower have to redeem the
property? - ✔✔There is no redemption period in Georgia after the foreclosure sale In Georgia, the
period for redeeming a property in default, called equity of redemption, does not extend beyond the
foreclosure sale, which, if allowed, is called statutory equity of redemption. ✔✔Bob and Janice
want to obtain a loan to buy a new home. Their combined monthly income is $7,500. What amount
of monthly payment can they qualify for if the lender uses 28/36 ratios and they have no other debt?
- ✔✔$2100 To calculate the maximum monthly payment they can qualify for, use the qualifying
formula: Part (Allowable payment amount) = Percent (Ratio) x Whole (Income). Insert the known
variables, Part = 0.28 x $7,500 and calculate. The maximum monthly payment Bob and Janice can
qualify for is $2,100. ✔✔A real estate agent forms an LLC. While previewing the new listings on
the market the agent sees a bank-owned listing priced to sell quickly. The agent writes an offer on
