[Tom Stepanski]

Proration Problems:

1. Seller purchased a 3-year insurance policy on September 1, 1998. Total costs was $2,700.00. Buyer will assume and pay for seller’s insurance. The day of closing is November 1, 1999. Prorate the cost to Buyer. Answer is $1,650
Policy will expire 8/31/2001 and closing is 11/1/1999, so we would subtract the day of closing from the expiration date. It would look like this; (Year-Month-Day)
Yr Mo Day
2001 08 31
2000 20 31
1999 11 01
1 9 30
Remember when we borrow, they are in Years, Months and Days. We had to borrow 1 year or 12 months because 11 was greater than 8.
$2,700 ÷3=$900 per year, $900÷12=$75 per month, $75÷30=$2.50 per day
$900 + $675 + $75 = $1,650

2. Taxes are $480.00 per year. Sale closes April 15. Prorate the taxes. (charge to whom and credit to whom.); Debit the seller $140 and credit the buyer $140
First, we would charge the seller and credit the buyer the same figure. The seller is paying their part of the yearly taxes.
The time that has passed since the first of the year is 3 months and 15 days.
$480÷$12=$40 per month, $40÷30=$1.333 (only carry 3 decimal places, do not round yet)
3 x $40 = $120 $1.333 x 15 = $19.995 or rounded, $20;
$120 + $20 = $140, debit the seller $140 and credit the buyer $140

3. Interest on a loan the buyer is assuming is 8%. On date of closing, June 10, the unpaid balance is $20,000.00. Interest is paid in arrears and is to be prorated. Seller $43.84 Buyer $87.67
10 days for the seller and 20 days for the buyer.
20,000 x .08 = 1,600, 1,600 ÷ 365 = 4.383561643835616 (time 10 for the seller and 20 for the buyer)
Seller $43.84 Buyer $87.67

[Tom Stepanski]

Supplemental Study Materials. Legal Descriptions.

Problem:
How many acres are contained in the following descriptions?

1. E 1/2 of NE1/4 of SW1/4 of NW1/4 of Section 9, T2N R4E IM.

Answer: 5 acres
2. SW1/4 of SE1/4 of NE1/4 and S1/2 of SW1/4 of NE1/4 of Section 9, T2N R4E IM.

Answer: 10+20=30 acres.
The “and” in the description means that the description is describing 2 separate parcels of land. The “and” in mathematical terms is a plus, +. Example: 2 and 2 is 4. 2+2=4.
3. Write the Legal description of the shaded area below of Section 8, T2N R4E IM.
Ques7_c.GIF (1121 bytes)

Ques3

Answer: The E1/2 of the NE1/4 of the SW1/4 of Section 8, T2N R4E IM.

AnswerQues3

4. How many miles north of the base line is the south boundary of Section 15, T12N, R5E IM?

Answer: 69 miles
5. How many miles east is the west boundary of Section 15, T12N, R5E IM?

Answer: 27 miles
6. How many acres are in the following legal description?
Beginning at the SW corner of section 16. then N 45º E to the NE corner of Section 10, then S 2 miles, then S 45º W to the SW corner of Section 22, then N 45º W to the point of beginning.

Answer: 1920 acres.

You MUST draw this out on paper.

When you do you will end up with the drawing below.

The first line splits sections 16 and 10 in half so you end up with a total of one section or 640 acres.

The next line you draw 2 miles south encompasses all of section 15 for 640 acres.

The last two lines split sections 22 and 21 in half and again you end up with one section or 640 acres.

 

[Tom Stepanski]

Supplemental Study Materials, Commissions

1. You sell a house for $35,000.00 at 6% commission to your broker. Your share is 50% of the commission. What is your share? 35,000 X .03 = $1050

2. A home owner tells you that another agent offered to list his house for $86,000.00 and charge $4,300.00 commission. What rate of commission did the other agent negotiate with the seller?
4,300 / 86,000 = 0.05 or 5% Commission.

3. A client wishes to list his house with you at a price that will net him $46,000.00 after the reduction of the 7% commission rate that you negotiated. What sales price do you need to list the home for?
(46000÷.93)=49462.37

[Tom Stepanski]

Supplemental Study Materials, Area and Cube Math, Answers.

Answer Page Area Cube Math

1. 15,840 cubic feet, divide by 27 for yards. 586.67 cubic yards

2. $750

3. 116.67 per front foot. – 1.06 per square foot.

4. 2,250 cubic feet, divide by 27 = 83.333 times 2.90 = 241.67

5. 100 X 108.9 = 10,890/43560=.25 quarter of an acre.

6. $23,500

7. 25 Lots

8. $884 SqFt.

9. 20+6+10+30+16+12+18+8+4+16=140 x 8 foot walls=1120 / 200 = 5.6 x $8 = $44.80

10. 145.2 Feet

According to Jim Dugan.

[Tom Stepanski]

Supplemental Study Materials, Real Estate Taxes

Tax problem answers: 1. $664.15, 2. $898.90, 3. $660.79, 4. $522
MTG problem answers: 1. $37.50, 2. $52.50, 3. $199.50.

[Tom Stepanski]

Finding the south boundary.

The question asks how long is the south boundary. You MUST draw this out on paper. Start with a square on a piece paper and draw a plus sign in the center out to the edges. Number them starting in the upper left hand square, NW, NE, lower row, SW and SE. This is a section and each square is a quarter section.

South boundary
1. Start at the end of the legal description. The put another plus sign in the SE ¼ and locate the SW ¼ and lets call that part 2.
2. Now locate the SW ¼ and put a plus sign in that, then locate the SE ¼ and then the E ½ and draw a line like in the figure, call that part 1.
3. The section is 1 mile by 1 mile. So part 2 is a quarter mile, half of half is a quarter. Part 1 is half of a ¼ so that is an 1/8 mile. I mile is 5,280 feet. So a quarter mile is 1320 feet, (5280 X .25) and half of 1320 is 660, totaled together is 1980.

[Tom Stepanski]

Question: Real Estate Brokers and their associates are NOT permitted to work under the Law of Agency for the public in Oklahoma. This portion of the course is dedicated to the “National Portion” of the licensing exam

Tom, does this mean the State of Oklahoma does not have agency relationships, but the National law allows it?

Answer: Yes and no. The state of Oklahoma has abolished the “agency relationship” between broker and public.

BUT the “agency relationship” still exists between Broker and Associate.

And because you are taking an exam that is TWO parts, National and State, The law of agency is still followed in other states so you need to know the law of agency…

Thank you,

[Tom Stepanski]

How to post your picture

You can change your profile picture on Gravatar.

[Tom Stepanski]

Finding Answers.

After reading the material in the module, when you close the class the system puts a green arrow next to the class showing that you have completed that class.

BEFORE you click the exam, right click the class module, must have green arrow, and OPEN IN NEW TAB.

Then come back to the tab you had open and click the exam, so you have both open in different tabs. Then locate the keyword in a question.

Tab over to the course material and click Find from the tool menu or Ctrl+F on the keyboard, this will open the Find Option of your browser, and look up the key word in the material.

The location on your browser may differ but it will be in the header or footer. This photo is from Internet Explorer.

[Tom Stepanski]

Q: How do I find out what my answers are?
A When you do not pass an exam, hover your house over the exam and DO NOT click. You will see a View Last Attempt to the right, click that and it will show you the answers you got correct and incorrect.

After you pass the exam there will be a QnA for that chapter containing all the questions from that chapter. Note the order may be different that what you received as the system will shuffle the questions.

[Author]

Posts