AZK RE - Numbers

  1. Penalty for Federal Fair Housing Act for first offence
    $16,000
  2. Penalty for Federal Fair Housing Act for the third violation within 7 years
    $70,000
  3. Civil Penalties for Federal Fair Housing Act for a first violation
    < $50,000
  4. Civil Penalties for Federal Fair Housing Act for second violation
    < $100,000
  5. Purchaser may cancel Contract of Sale within ___ after both executing it and receiving the public offering statement
    - 15 days after both executing it and receiving the public offering statement
  6. Byers may cancel Purchase Contract ___ after the resale documents have been delivered
    5 business days after the resale documents have been delivered
  7. Obtaining resale documents  (# of days, cost)
    • - within 10 business days
    • - $125 + 5 cents for each page
    • - $10 for an electronic document
  8. Condominium Conversion requires that owners give tenants
    at least 180 days’ notice of conversion
  9. 1 square mile = sq acres
    = 640 sq acres
  10. 1 acre = sq feet
    = 43,560 square feet
  11. 1 mile = feet
    = 5,280 feet
  12. RE Conveyance Taxes
    • 18 Targeted Investments - 0.25%
    •                                                        0.5%
    • Municipal                        - 0.25%
    •                                                        1.0%
    • State =<800,000            - 0.75%
    •                                                         2.0%
    • State >8000,000             - 1.25%
  13. Conveyance Farm Forest and Open Space Lands
    Classification of “Farm” was obtained by the property in 1980
    Property was sold in 1987
    • Property was sold in 7 years after obtaining the “Farm” classification
    • 1987 – 1980 = 7 (10 – 7 = 3)
    • Penalty conveyance tax = 3%
  14. Conveyance Farm Forest and Open Space Lands
    Classification of “Farm” was obtained by the property in Jan 1, 2001
    Property was sold in 2007 (in 6 years)
    • Property was sold in 6 years after obtaining the “Farm” classification.
    • 2007 – 2001= 6 (10 – 6 = 4)
    • Penalty conveyance tax = 4%
  15. Adverse possession must be uninterrupted for
    15 years
  16. Property owner can stop adverse possession by
    - bring a court action within 1 year of serving the notice
  17. Spouse and children of both decedent
    spouse?
    children?
    • - spouse first 100,000 + half of the reminder
    • - children the other half
  18. Spouse and children, one or more is not the child of the spouse
    spouse?
    children?
    • - spouse half
    • - children other half
  19. Spouse and parents no children
    spouse?
    parents?
    • - spouse first 100,000 + 3/4 of the reminder
    • - parents the other 1/4
  20. Title search examination of the public records for how many years?
    - 40-60 years (40 years in CT)
  21. CT Recording fees
    • - first page of a document
    •     - $53       - including fee for the preservation of historic documents $3
    • - each additional page
    •     - $5
  22. CT if document to be recorded is a Deed with Consideration
    - $2 additional fee
  23. Change of Name or Status (marriage or business merger) must be recorded within
    60 days from the date of the change
  24. Antitrust laws (4)
    • 1) Price-Fixing
    •     - not "going rate” or "normal" fee
    • 2) Group Boycott
    •     - not showing the competitor’s firms listing
    • 3) Allocation of Customers or Markets
    •     - divide their markets
    • 4) Tie-In Agreements
    •     - only if the buyer purchases another product as well
  25. Antitrust Laws penalties
    • - Sherman Antitrust Act
    • - for Fixing Prices or Allocating Markets max $1 million fine and 10 years prison
  26. Antitrust laws Penalties for corporation
    • - Sherman Antitrust Act
    • - up to $100 million
  27. Antitrust laws Penalties for individual who has suffered
    Treble Damages (3 times of actual damages)
  28. Contract for a mortgage loan must be in written if
    mortgage loan for over $50,000
  29. Contract for a lease must be in written if
    • - it is over $500
    •       - or
    • - it is over 1 year
  30. Escrow or Trust deposit must be made w/i
    3 days
  31. Assessed Value formula
    Assessed Value = Market Value x Assessment %
  32. Tax Bill formula
    • Tax Bill = Market Value x Assessment % x Tax Rate %
    •            or
    • Tax Bill = Assessed Value x Tax Rate %
  33. Equalized Assessment formula
    • Equalized Assessment = Market Value x Assessment % x Tax Rate % x Equalization Factor %
    •            or
    • Equalized Assessment = Assessed Value x Tax Rate % x Equalization Factor %
    •            or
    • Equalized Assessment = Tax Bill x Equalization Factor %
  34. Actual Mills formula
    Actual Mills = Assessed Value ÷ 1,000
  35. Market Value = 500,000
    Assessment Ratio = 70%
    Tax Rate = 20 mills
    ----------
    Property Tax = ?
    • Tax Bill
    •    - 500,000 x 70% x 2% = 7,000
  36. Assessment = 160,000
    Tax Rate = 30 mills
    Equalization Factor = 120%
    -------------------------
    Tax owned on the property = ?
    Tax with Equalization Factor = ?
    • Tax owned on the property =
    •    - Assessment x Tax Rate
    •    - 160,000 x 3% = 4,800
    • Tax with Equalization Factor =
    •    - Assessment x Tax Rate x Equalization Factor
    •    - 160,000 x 120% x 3% = 5,760
  37. Property Value = 135,000
    Assessment = 47,250
    Equalization Factor = 125%
    Tax Rate = 25 mills
    -----------
    Tax with Equalization Factor = ?
    Assessment at % = ?
    • Tax with Equalization Factor =
    •    - 47,250 x 2.5% x 125% = 1,476.5625
    • Assessment at % =
    •    - 47,250 ÷ 135,000 x 100 = 35%
  38. Market Value = 160,000
    Assessment at % = 75%
    Tax Rate = 40 mills
    ---------
    Tax Bill = ?
    • Tax Bill =
    •    - 160,000 x 75% x 4% = 4,800
  39. Taxes formula
    • Actual Mills = Assessed Value ÷ 1,000
    • Taxes = Actual Mills x Rate of Mills

    • Assessed Value = 55,000
    • Rate of Mills = 20
    • Taxes = ?
    • -----------
    • Actual Mills = 55,000 ÷ 1,000 = 55
    • Taxes = 55 x 20 = 1,100
    •        or
    • Taxes = 55,000 x 2% = 1,100
  40. Loan Amount formula
    • .                   Loan Amount
    •                        -----------
    •      Sales Price         x        Loan-To-Value Ratio (LTV - %)
    • or Appraised Value                (loan approved)
    • (whichever is less)
  41. Parcel sold for = 335,200
    Loan approved = 90% (LTV)
    Interest = 4.5%
    Period = 30 years
    Appraised Value = 335,500
    -----------
    Interest of the 1st month = ?
    • Loan amount    
    •    - 335,200 x 90% = 301,680
    • Annual interest  
    •     - 301,680 x 4.5% = 13,575.60
    • Interest of the 1st month
    •     - 13,575.60 ÷ 12 = 1,131.30
  42. Mortgage Amortization Triangle
    • 1) Month Interest = Principal Balance x Annual Interest Rate ÷ 12
    • 2) Amount paid toward principal = Monthly Payment – Month Interest
    • 3) New Principal Balance = Principal Balance – Amount paid toward principal
  43. Cost Approach formula
    Total Property Value = Curr (const) Cost - Accr Dep + Land
  44. Land = 60,000
    Current Replacement cost (1978) = 265,000
    Economic Life = 50 years
    --------
    Cost expected in 2002 (24 years) = ?
    • Annual Straight-Line Depreciation
    •     - 265,000 ÷ 50 = 5,300
    • Depreciation in 24 years
    •     - 24 x 5,300 = 127,200
    • Current property and land value
    •     - 265,000 + 60,000 = 325,000
    • Expected in 2002 (24 years)
    •     - 325,000 – 127,200 = 197,800
  45. Cash Flow Report
    • Total Income = Gross Retail Income + Other Income – Loses Incurred
    • Net Operating Income (NOI) = Total Income – Operating Expenses
    • Cash Flow = Net Operating Income (NOI) – Debt Service – Reserves
  46. Periodic revaluation
    • CT require that towns revalue properties every
    •     - 5 years by physical observation or statistical analysis
    •     - 10 years by physical inspection (complete)
  47. Tax Year from-to
    - from July 1 to June 30
  48. Taxes are payable for current tax year on
    July 1 and Jan 1
  49. Assessment dates
    Grant least for the next tax year must be assessed by Oct 1 of preceding (предшествующий) year
  50. Grace Period
    • - after due dates (July 1 and Jan 1) before penalties
    • - 30 days
  51. Tax bills issued at least ___ prior to the date on which the first installment is due and payable
    30 days prior to the date on which the first installment is due and payable
  52. On what date taxes become a lien?
    Assessment date Oct 1
  53. Statutes hold tax liens to (how long?)
    15 year maximum
  54. To be valid tax lien must be recorded within
    2 years from the due date
  55. Taxpayer has a period to exercise his Right of Redemption period of ___ from the date of sale
    6 months from the date of sale
  56. Right of Redemption can be as short as
    60 days
  57. Mechanics Lien will extinguish in ___ years from the date of recorded
    - in 1 year
  58. Mechanics Lien must be recorded within
    - 90 days from the time the mechanics’ work cases
  59. PITI in at least 10% of the down payment
    - no more than 28% of the gross monthly income
  60. PITI + other (non-housing) debt expense
    - not to exceed 36% of the gross monthly income
  61. PITI + other (non-housing) debt expense
    Other (non-housing) debt?
    - not to exceed 8% of the gross monthly income
  62. PITI
    Insurance premiums, utilities, routine medical care?
    - to be covered by 64% of the gross monthly income
  63. Gross monthly Income = 5,000
    Required down payment = 10%
    --------------
    Total housing expense allowed?
    Total housing + other (non-housing) expense?
    • PITI total housing expense allowed
    •     - 5,000 x 28% = 1,400
    • PITI + other (non-housing) expense
    •     - 5,000 x 36% = 1,800
  64. Tax deduction on Mortgage interest payments on first and second homes?
    • - single below 1 million
    • - married filing separately $500,000
  65. Tax benefit for married couple?
    • Married couple from Capital Gains Tax
    •     - file a joint 500,000
    •     - files singly 250,000
  66. Tax benefit for First time home buyer?
    • - penalty-free withdrawal from IRA (limit is 10,000)
    • - must be spend within 120 days
  67. Loan Origination Fee or
    • - or Transfer Fee
    • - 1% of the loan amount
  68. Discount points
    - 1 point = __ of the loan amount
    - 1 point = __ of the interest
    • - 1 point = 1% of the loan amount
    • - 1 point = 0.125% of the interest
    •         - 1% of interest = 0.125% per 1 point
  69. House price = 100,000
    Loan = 80,000
    --------
    3 discount points = ?
    80,000 x 3%                2,400
  70. Loan amount = 350,000
    Charge for points = 9,275
    ---------
    How many points?
    9,275 ÷ 350,000 (x 100) = 2.65 points
  71. Interest Rate Factor (from chart) = 6
    Term = 30 years
    Total Loan = 200,000
    ----------
    Principal and Interest Monthly Payment (PI)?
    • Interest Rate Factor
    •     - 6.00 per 1,000 of loan  (use chart)
    • Principal and Interest
    •     - 200,000 ÷ 1,000 x 6 = 1,200
  72. Appraisal of property need not to be performed by a certified appraiser up to
    250,000
  73. General Appraiser
    classroom hours?
    experience?
    • - all property types
    • - 300 classroom hours
    • - 3,000 experience over 30 months
  74. Residential Appraiser
    classroom hours?
    experience?
    • - residential property only (1-4 units)
    • - 200 classroom hours
    • - 2,500 experience over 2 years
  75. Provisional Appraiser
    classroom hours?
    experience?
    • - entry level, in training, only under supervision
    • - 75 classroom
    • - none experience
    • - 4 years to be renewable
  76. CT RE appraisal Commission consists
    • - 8 members
    •    - (5 certified appraisers, 3 public members)
  77. Violation of not being licensed for appraisal
    • - $1,000
    • - 6 months in prison
  78. Federal registry annual fee for appraisal
    - $25 from each appraiser
  79. License renewal for appraisal (date)
    April 30th of each year
  80. Continuing education for appraisal ___ hours every ___
    - 28 hours in every even-numbered year
  81. Retire status for appraisal
    • - 65 years or older
    • - fee for retirement is $20
  82. Leases must be
       - written 
       - recorded
    • - written for term of more than 1 year
    • - recorded for greater than $500
  83. Security Deposits maximum can be
    - 2 months’ rent
  84. Max Security Deposits maximum if tenant 62
    - only 1 month rent
  85. Security Deposits must be kept in an ___
    Penalty?
    • - Escrow Account
    • - $500 and/or 30 days imprisonment
  86. Security Deposits Interest no less than 
    Penalty?
    • - Interest on the deposit no less than 1.5%
    • - fine $100
  87. If LL is not returning the deposit on termination
    - $250 fee
  88. Interest on Security Deposit must be paid on
    - every anniversary of the lease (1 year)
  89. Interest on Security Deposit must be paid within __ of actual termination
    Penalty
    • - 30 days
    • - x2 of SD
    •      - or
    • - x2 of interest due +
    • - + $250 penalty for each failure +
    • - + interests due
  90. Criminal damage
    - tenant who intentionally damages property
  91. Class D Felony
    • - First Degree Damage
    • - damage > $1,500
  92. Misdemeanor
    • - Second Degree Damage
    • - damage $250 < Damage < $1,500
  93. LL can terminate the lease and evict the tenant if tenant fails to pay rent within
    - 9 days of the due date
  94. LL may deliver the writing notice to the tenant that lease will terminate in
    - 15 days
  95. If landlord breaches tenant must give to LL written __ notice
    - 15 days’
  96. If LL make same breach within 6 months tenant can terminate the agreement on __ written notice
    - 14 days
  97. If LL make same breach within 6 months tenant can terminate the agreement on 15 days’ written notice which must be written within __ of the breach
    - 30 days
  98. How many days does LL has to remedy the breach?
    2 days
  99. If the failure of the LL was fearful (intentional) the tenant can
    - terminate that agreement
  100. If the failure of the LL was fearful (intentional) the tenant can recover an amount equal to __ rent or __ actual damage
    - recover an amount equal to 2 month rent or twice actual damage
  101. LL cannot take retaliatory action against a tenant by raising rents within __ of a tenant make a reasonable request for repair
    6 months
  102. Radon levels national average of outside radon
    - 0.4 pCi/L
  103. Radon levels an "action" level of
    - 4 pCi/L
  104. Radon levels 95% of time current technology can bring the level below
    4
  105. Radon levels 75% of the time level can be reduced to
    2
  106. Result of mitigation within
    - 10 days
  107. CT Recommends that all homes be mitigated if radon is
    => 4 pCi/L
  108. First Degree Damage
    • Class D Felony
    • - damage > $1,500
  109. Second Degree Damage
    • Second Degree Damage
    • - damage $250 < D < $1,500
  110. CT Guaranty Fund
    • - one-time fee $20
    • - seller who pays a commission to a broker under a false pretenses may receive compensation
  111. Broker Application cost
    $120
  112. Broker Education
    • - 60 h - RE Principals and Practices
    • - 15 h - RE Brokerage Principals and Practices
    • - 15 h - Legal Compliance
    •    - Total: 120 h
    •                    +
    • One of the following:
    •    - 2 15 h prelicense elective courses
    •    - 30 h prelicense appraisal courses
    •    - 20 transactions in the last 5 years
  113. Experience to apply for Brokerage
    2 years
  114. Broker Renewal date
    March 31, annually
  115. Broker Cont Education
    • - 12 hours every 2 years
    • - in Even-Numbered Years
    • - by March 31st
  116. Broker Testing initial
    65
  117. Broker License Initial year cost
    565
  118. Broker License renewal cost
    375 annual
  119. Broker Cont Education cost
    8
  120. Salesperson Education
    60 h RE Principals and Practices
  121. Salesperson Renewal date
    May 31, annually
  122. Salesperson Cont Education
    • - 12 hours every 2 years
    • - in Even-Numbered Years
    • - by May 31st
  123. Salesperson Application cost
    80
  124. Salesperson Testing initial
    65
  125. Salesperson License Initial year cost
    285
  126. Salesperson License renewal cost
    285
  127. Salesperson Cont Education cost
    8
  128. To change of Broker Affiliation Salesperson must
    • 1) Register the change with a RE Commission
    • 2) Pay $25 transfer fee
    • 3) Return all records and information
Author
flashsmilenet
ID
347375
Card Set
AZK RE - Numbers
Description
AZK RE - Numbers
Updated