Flashcards in Questions Deck (89)
Sam's house is worth $300,000. Assessment is 48%. Tax is 5%. What is annual tax?
$Value x %assessment x percent tax= $annual tax
300k x 48%= 40k
40k x 5%= 7200
What is an assessment?
Adjustment to lower tax for high market values
Sam's house is worth $200,000. Assessment is 50%. Tax is $5 per $100 of value. What is semi annual tax?
$5 per $100= 5%.
$200k x 50% = $100k
100k x 5%= $5000
What is the reason for a 1031 exchange?
A tax break or tax shelter
What is another name for a tax break?
What is boot?
personal property or money
What property is like-kind to a hotel?
ALL real estate
What does a qualified intermediary do?
Holds money in a RE exchange
Does a RE exchange have to be in the US?
What are the bundle of rights?
What rights are freehold?
What rights are leasehold?
What right do you have in a leasehold?
encroachment= trespass by a thing
escheat= die, no will, no heirs = NYS takes RE
easement= someone can legally use your RE (can't drive or walk on RE)
Unless it is a lesser estate, what kind of freehold is it?
a) Fee Simple Absolute
b) Life Estate
c) Estate for Years
d) Estate at Will
A) Fee Simple
life estate= lesser estate
estate for years= leasehold
estate at will= leasehold
What is a primary example of a full estate with full bundle of rights?
fee simple absolute
What is an example of a lesser freehold where you only own RE for your lifetime and then it goes on to someone else? And what 2 bundles of rights are lacking?
Life Estate: Have Deed but lack Control + Disposition
What are two acronyms for the bundle of rights?
Please Quit Eating Candy Daily
Which department licenses mortgage professionals?
Department of Financial Services (DFS)
Which department licenses REA?
Department of State
What was the former name for the Department of Financial Services and who do they often license?
Dept of Banking
What state dept is in charge of drinking water and sewage?
Dept of Health
What fed govt protects wetlands?
Army Corps of Engineers
What do the Army Corps of Engineers protect?
What are 2 things the dept of health is in charge of?
drinking water & sewage
What is it called when you take a number and divide it up into smaller pieces?
Sam sells his house April 30. He already paid this year's RE tax of $2400 in full. Under proration, who owes what to whom?
$1600; debit to buyer
Buyer owes Sam for 8 months
Debit to buyer; Credit to Sam
$2400 / 12 months = $200
$200 x 8 months= $1600
What is the difference between debit and credit?
debit= you owe
credit= get paid
When calculating proration how many days are in a month?
A seller wants to net $180,000 on sale of his house after 10% commission's paid. What does sale price have to be?
$ Net price / % to seller = $ Sale price
100%-10% commission= 90%
Think 8= 2 o's= 200k
10% of 18= $2 tip = 200k