Practice Questions & Answers

For the following questions, the answer will always be on the next slide.

Try to do the question first without looking at the answer for better practice and results!

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1. Tim works for JKV Realty Inc and gets a 65/35 split and the brokerage policy is 50/50 on listing and selling. Leah from the same company has a split of 75/25 listed a property for $450,000. The total commission for that property is 4.25%. The total commission that Tim and Leah would each get is:

Tim:

Leah:

The brokerage would get:

Answer to Q.1Tim-

5877.2

Leah-

6781.4

Brokerage-

2260.47+3164.66 = 5425.13

2. Nicole works for JMC Realty Inc with 60/40 split and her brokerage policy is 50/50 on listing and selling. Mike from ERL company with 75/25 split listed a house for $450,000 which has been sold by Nicole for $425,500 with a total commission of 4.25%. Each sells person would get how much commission:

Nicole-

Mike-

The brokerage 1 & 2-

Answer to Q.2

Nicole- 5425.13

Mike- 6781.41

The Brokerage 1- 3613.75

The Brokerage 2- 2260.47

3.Emily just sold a property on Hunter Ave and received $7350 with an 85/15 split with the brokerage and the brokerage got 50% of the total commission being 5%. The sales price would be:

How about if they sold for 90% of the listing price, the listing price would be:

Answer to Q.3

Sales Price-$345,882.34

The listing price- $84,313.7

4.

If Gary bought a lot that is vacant for $850,000, what would be the land transfer tax:

If later he then builds a home on it, the land transfer tax would then be:

Answer to Q.4

Land Transfer Tax - $11,225

Land Property Tax - $13,475

5.

A property was sold for $500,000 and has taxes of about $4,500 per year which the seller has already paid $3,500 with a closing date on June 14th. Who would get the credit and for how much:

Answer to Q.5

The seller would get the credit of $1478.1

6.

How much would Liam get in rent if he always collects it in arrears and the month of July, the rent is $850 but is selling his house on July 17th. The rent he would collect is:

Answer to Q.6

Rent Collected: $438.7

7.

What is the mean and the median of the following:

$230000 $250000 $232500 $235000 $240000 $230000

$233500 $238700 $242300 $242300 $245000 $237800

$230000

Answer to Q.7

Mean- $237,066.6

Median- $236,400

8.A commercial unit has an income of $42,000 and has a vacancy loss of 4% and an estimated expense of $21,000. If there was a cap rate on this commercial unit of 11%, what would be the value on this unit:

If the building has 1200 SqFt, the value of the unit would be:

Also calculate for SqMt:

Answer to Q.8

Value- $175,636.36

SqFt- 146.36 p/ SqFt

SqMt- 1575.49 p/ SqMt

9.

What would the cap rate be if a business was estimated at $420,000 and had a gross income of $85,000 with an expense rate of $30500:

Answer to Q.9

Cape Rate: 12.976%

10.

What would be the tax rate if the government made improvements in the community with a budget of $1,750,000 and tax base of $60,000,000:

Answer to Q.10

•Tax Rate - 2.92%

11.

What would be the tax rate that would be required to pay if the tax rate was 4.25% and the buyer is buying a property for $250,000:

Answer to Q.11

Tax Required to Pay Back- $10,625

12.

A total of 324 brokered transactions are done and 25% are done by Sam and each sale averages to about $250,000. How much volume of business is done by Sam:

Answer to Q.12

81x250,000 = $20,250,000 are done by Sam

13.

In the city of Bowmansville it requires the builder to leave 15% for pedestrian pathway. The builder has 3 acres of land and wants to make 6 parcels. The amount of SqMt he would be limited to for each parcel is:

Answer to Q.13

Each parcel – 1719.9 SqMt

14.A Salesperson sold 3 properties.

House A listed at- $450,000, was sold at 95% of listing price

House B listed at- $505,000 was sold for $490,000

House C listed at- $475,000 and sold for 100%

The house that was the lowest % difference is:

Calculate from lowest highest

Answer to Q.14

C has the lowest % difference, lowest to highest A (95%)< B (97%)<C (100%)

15.

Kennedy is looking to get a commercial unit and rent it. Last year the rent for the commercial unit was $7.50 p/ SqFt. This year the rent would be $8.25 and next year $9.25. Calculate the increase that would be from last year to this year and then from this year to next year:

B. If the property was 4500 SqFt, how much would he then have to pay monthly for next year:

Answer to Q.15

10%

12.12%

B. 2697.9 Monthly

16.

If a house that was listed for %455,000 with a variety of upgrades and a lot of offers and was sold for 108%, the sold price would be:

Answer to Q.16

Sold Price = $491,400

17.

A house was sold for 93% of its listing price at $475,000. The listing sale price was:

Answer to Q.17

Listing Price- $511,290.30

18.

Adam wants to renovate his already beautiful home and the bank is going to give him a loan of $18000 with 9% interest compounded for 10 months. At the end, how much interest is he going to have to pay:

Answer to Q.18

Final amount – 19396.44

Interest- 1396.44

19.

A client has a first mortgage of = $450,000 at 6%

Second mortgage of = $75000 at 11%

Both the mortgages has matured terms, the average interest rate would be:

Answer to Q.19

Avg. Interest Rate- 6.71%

20.

A buyer has assumed that an existing mortgage would be $350,000 on a sale of $600,000 and their closing cost is 2%. The money this buyer would need to close the deal would be:

Answer to Q.20

Money needed - $262,000

21.

A family buyer’s income is expected to be about $75000 and wants to buy a house that requires monthly payments inclusive of taxes of $2250. The bank applies a rate of 30%, is this buyer qualified:

Answer to Q.21

No- 22,500

22.

If this same family buyer has a GDS ratio and needs payments to amount up to $2050 p/month included with tax, the monthly income required is:

Answer to Q.22

Monthly income required - $82,000

23.

Francesca has a TDS of 40% and makes $6500 along with having to make monthly car payments of $535 and taxes yearly of $2400. Her monthly payments would be:

Answer to Q.23

Monthly payment - $1431.66

24.

GDS ration applies of 32% with an annual income of $55000 and taxes of $250 p/month. The monthly payments would be:

Answer to Q.24

Monthly payments - $1216.67

25.

A buyer is interested in a property that is being listed at $767000 and would like to buy this property at 95%. The buyer has a monthly income of 5765 and taxes are $3575 and has a car loan payment monthly of $780. If the buyer has 40% TDS, their monthly payments would be:

Answer to Q.25

Monthly payment- $1228.08

26.

If a building property has 210.5 Ft frontage and 215 ft in length and the city requires a min. Of 19000 SqFt, with an area of 30% construction, how much would this cost:

Answer to Q.26

13577.25

27.

If the city allows 12% extension on a building that is sized at 3500 SqFt, how much would it be in SqMts:

Answer to Q.27

SqMts – 13577.25

28.

Each driveway measures 50 ft long and 30 ft wide and 6” thick and a builder charges 100$ p/ cubic feet. The amount of money needed to pay for 5 driveways would be:

Answer to Q.28

Payment for five driveways- $375,000