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! GOOD LUCK

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.1 Tim Leah Brokerage =

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 Mike The Brokerage The Brokerage

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, 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 14 th. 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 17 th. 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

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, SqFt p/ SqFt SqMt 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: %

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 %

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 – 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 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 – Interest

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 - $

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 - $

25. A buyer is interested in a property that is being listed at $ 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- $

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

Answer to Q

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 –

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