Florida · state portion

Free Florida Real Estate Related Computations and Closing of Transactions practice questions

10 original questions with full explanations. 6 of the 100 scored exam questions (about 6%) come from this area.

1. 1

   A lender charges 1 discount point on a $160,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

   • A. $800
   • B. $3,200
   • C. $160
   • D. $1,600
   Show answer & explanation

   Answer: D

   1 point = 1% of $160,000 = $1,600.

2. 2

   An investor bought a property for $410,000 and wants to sell it for a 15% profit. What must the sale price be?

   • A. $348,500
   • B. $61,500
   • C. $410,000
   • D. $471,500
   Show answer & explanation

   Answer: D

   Sale price = cost × (1 + profit%) = $410,000 × 1.15 = $471,500.

3. 3

   A tenant paid $1,600 rent for the full month. The sale closes on day 14 of a 30-day month. How much unearned rent must the seller credit the buyer at closing?

   • A. $745.67
   • B. $906.67
   • C. $746.67
   • D. $853.33
   Show answer & explanation

   Answer: D

   Daily rent = $1,600 ÷ 30 = $53.33. The buyer owns the property for the 16 remaining days, so the credit = $53.33 × 16 = $853.33.

4. 4

   An investor bought a property for $320,000 and wants to sell it for a 10% profit. What must the sale price be?

   • A. $320,000
   • B. $288,000
   • C. $32,000
   • D. $352,000
   Show answer & explanation

   Answer: D

   Sale price = cost × (1 + profit%) = $320,000 × 1.1 = $352,000.

5. 5

   An investor bought a property for $200,000 and wants to sell it for a 10% profit. What must the sale price be?

   • A. $20,000
   • B. $200,000
   • C. $180,000
   • D. $220,000
   Show answer & explanation

   Answer: D

   Sale price = cost × (1 + profit%) = $200,000 × 1.1 = $220,000.

6. 6

   Annual property taxes are $9,000. Using a 365-day year, the seller is responsible for 98 days. What is the seller's prorated share?

   • A. $2,450.00
   • B. $6,583.56
   • C. $3,156.16
   • D. $2,416.44
   Show answer & explanation

   Answer: D

   Daily tax = $9,000 ÷ 365 = $24.66. Seller's share = $24.66 × 98 = $2,416.44.

7. 7

   A borrower is considering two loan options: a conventional loan with a 20% down payment and an FHA loan with a 3.5% down payment. Which loan will have a higher monthly payment?

   • A. The conventional loan
   • B. The FHA loan
   • C. Neither loan will have a higher monthly payment
   • D. It depends on the interest rate
   Show answer & explanation

   Answer: B

   The FHA loan will have a higher monthly payment due to the lower down payment and the requirement for private mortgage insurance (PMI).

8. 8

   A property is valued at $540,000 and the buyer makes a 20% down payment, financing the rest. What is the loan-to-value (LTV) ratio?

   • A. 80%
   • B. 75%
   • C. 85%
   • D. 20%
   Show answer & explanation

   Answer: A

   Loan = $432,000. LTV = loan ÷ value = $432,000 ÷ $540,000 = 80% (equivalently 100% − 20% down).

9. 9

   A home sells for $400,000 with a 7% commission and no other closing costs. What does the seller net?

   • A. $372,000
   • B. $28,000
   • C. $400,000
   • D. $368,000
   Show answer & explanation

   Answer: A

   Commission = $400,000 × 7% = $28,000. Net = $400,000 − $28,000 = $372,000.

10. 10

    A lender charges 2 discount points on a $330,000 loan. One point equals 1% of the loan amount. What is the cost of the points?

    • A. $6,600
    • B. $9,900
    • C. $13,200
    • D. $660
    Show answer & explanation

    Answer: A

    2 points = 2% of $330,000 = $6,600.