Skip to Content

Chapter 15 Practice Questions

Chapter 15: Real Estate Related Computations And Closing Of. Practice Florida real estate questions and review the explanation for each answer.

35 practice questions

  1. Chapter 15 What is the definition of "profit" in a real estate transaction?
  2. Chapter 15 What is the primary purpose of a preclosing inspection (final walk-through)?
  3. Chapter 15 To "prorate" means to:
  4. Chapter 15 Property taxes are typically paid in:
  5. Chapter 15 How are unpaid property taxes entered on the closing statement?
  6. Chapter 15 When prorating items paid in arrears (like property taxes), which days are used to calculate the amount?
  7. Chapter 15 When prorating items paid in advance (like HOA fees or rent), which days are used to calculate the amount?
  8. Chapter 15 Which statement is TRUE regarding prorations on a closing statement?
  9. Chapter 15 Who does rental income collected in advance belong to as of the date of closing?
  10. Chapter 15 How is advance rental income entered on the closing statement?
  11. Chapter 15 The Documentary Stamp Tax on Deeds is charged on the:
  12. Chapter 15 What is the state tax rate for Documentary Stamps on Deeds (excluding Miami-Dade County)?
  13. Chapter 15 Documentary Stamp Tax on Promissory Notes is charged on:
  14. Chapter 15 What is the tax rate for Documentary Stamps on Notes?
  15. Chapter 15 Intangible Tax is paid on:
  16. Chapter 15 What is the tax rate for the Intangible Tax on new mortgages?
  17. Chapter 15 If a property sells for $100,000 in Broward County, how are the Documentary Stamps on the Deed calculated?
  18. Chapter 15 A buyer is purchasing a house with a closing scheduled for June 15. The annual property taxes are $3,650. The sale contract states that the day of closing belongs to the buyer. Calculate the property tax proration using the 365-day method.
  19. Chapter 15 A broker lists a property with an agreement to a 6% commission to be split as follows: 40% to the listing broker and 60% to the selling broker. A sales associate who works for the selling broker sells the property for $875,000. The sales associate’s agreement with his employer calls for a 60% share to him of all commissions she brings to the company. How much is due the sales associate?
  20. Chapter 15 You owned 5/8 of a property. You were paid $850,000 for your share of the property when it sold. How much did the property sell for?
  21. Chapter 15 Change the decimal .594 to a percentage.
  22. Chapter 15 You receive a total gross commission of $25,800. You have an agreed-upon 80/20 commission split with your employing broker (where you keep 80%). How much is your cut?
  23. Chapter 15 A real estate investor purchases a distressed property for $120,000 and spends $60,000 on major renovations. Due to an unexpected market downturn, the investor is forced to sell the property quickly for $144,000. What is the investor’s percentage of loss on this transaction?
  24. Chapter 15 A buyer purchases a luxury waterfront home in Broward County, Florida, for $950,000. The buyer provides a cash deposit of $150,000, assumes the seller's existing recorded mortgage of $400,000, and signs a new second mortgage and promissory note for $400,000. What are the total state taxes due as a result of this property transfer?
  25. Chapter 15 A broker lists a condo with an agreement for a 6% total commission. The commission is to be split 40% to the listing broker and 60% to the selling broker. A sales associate who works for the selling broker successfully brings a buyer, and the property sells for $1,250,000. If the sales associate’s independent contractor agreement with her broker calls for a 70% split of all commissions she brings into the office, how much is the sales associate's final cut?
  26. Chapter 15 A homebuyer has agreed to pay the state taxes associated with a brand new primary mortgage loan of $720,000. What is the total cost of the state taxes on this new loan?
  27. Chapter 15 A real estate developer purchased two 300-foot oceanfront lots for $4,000 per front foot. She then subdivided this land into five smaller oceanfront parcels, which she successfully sold for $600,000 each. What was her percentage of profit on the total sales?
  28. Chapter 15 A commercial retail space measures 120 feet by 80 feet and rents for $14,400 a month. What is the rent per square foot per month?
  29. Chapter 15 An investor incurred a 15% loss when she sold a 5-acre commercial tract (Tract A) for $680,000. She also owns a 15-acre residential tract (Tract B) for which she originally paid $1,500,000. How much must she sell Tract B for in total if she wishes not only to recover her financial loss from Tract A, but also to realize a 20% profit on her original investment in Tract B?
  30. Chapter 15 An investor is purchasing a triplex in Tampa, Florida. Each of the three units rents for $1,800 per month. The closing is scheduled for November 18, and all rents for the month were collected by the seller on November 1. If the day of closing belongs to the buyer, what is the rent proration for this transaction, and who receives the credit?