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Question
Since hazard insurance premiums are paid up-front, the buyer will have to reimburse (credit) the seller a portion of the premium at the closing. Suppose that the insurance policys coverage began on December 15th of the prior year and the property transaction is set to close on March 16th of a 365-day year. The premium paid originally by the seller was $250. If the coverage will expire as of the end of day December 14th in the current year, what is the dollar amount that the buyer must credit the seller?
A. $0.00
B. $62.33
C. $187.67
D. $250.00
Answer
This answer is hidden. It contains 1 characters.
Related questions
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Which of the following types of direct co-ownership combines single person ownership with tenancy in common?
A. Cooperative
B. Tenancy by the entirety
C. Condominium
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A. Tenancy in common
B. Tenancy by the entirety
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C. Lien arising from a court judgment unrelated to ownership of the property
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A. Leasehold estates are limited in time.
B. The right of disposition is diminished with a leasehold estate.
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Q:
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Q:
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Q:
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C. equity REITs
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B. Building site
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B. Quality neighborhood schools
C. Public assistance facilities such as homeless shelters.
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Q:
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A. Statute of Frauds
B. doctrine of constructive notice
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B. Easement of necessity
C. Easement by estoppel
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Q:
The type of deed offered by the grantor is communicated through a phrase such as does herby grant, bargain, sell and convey unto . . . This clause is referred to as the:
A. recital of consideration
B. words of conveyance
C. covenant
D. habendum clause
Q:
A deed is a special form of written contract used to convey a permanent interest in real property. Unlike most contracts, a deed requires:
A. both parties to be legally competent and of legal majority age.
B. only the grantee to be legally competent and of legal majority age.
C. only the grantor to be legally competent and of legal majority age.
D. both parties to make promises to perform.
Q:
Which of the following leasehold estates best describes the situation in which a tenant who previously occupied a property under a legitimate leasehold interest refuses to vacate?
A. Tenancy for years
B. Tenancy at will
C. Periodic tenancy
D. Tenancy at sufferance
Q:
Since an easement is a non-possessory interest, it is important to understand the right of disposition that is associated with it. In which of the following types of easements is the right of disposition claimed as part of the easement?
A. Implied easement
B. Easement in gross
C. Negative easement appurtenant
D. Positive easement appurtenant
Q:
When multiple individuals have use of a property, but their interests are not simultaneous, this type of co-ownership is referred to as a:
A. Cooperative
B. Tenancy by the entirety
C. Condominium
D. Timeshare
Q:
In a mortgage agreement, the borrower conveys to the lender a security interest in the mortgage property. The lender, i.e. the individual who receives the mortgage claim, is known as the:
A. broker
B. mortgagor
C. agent
D. mortgagee
Q:
Most Adjustable Rate Mortgage (ARM) loans have been marketed with a temporarily reduced interest rate commonly referred to as a:
A. rate cap
B. teaser rate
C. payment cap
D. prepayment rate
Q:
A significant number of mortgage loans use adjustable interest rates, in which the interest rate of the loan is tied to an index rate that fluctuates over time. For income-producing property, the most common index rate is the:
A. one-year U.S. Treasury constant maturity rate
B. prime rate
C. London Interbank Offered Rate (LIBOR)
D. cost-of-funds index
Q:
Analysis of a subject propertys pro forma reveals that its fifth year net operating income (NOI) is projected to be $100,282 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 3% per year and the going-out capitalization rate in year five to be 10%, determine the net sale proceeds the current owner of the property would receive if he were to sell the property at the end of year five and incur selling expenses that amounted to $58,300.
A. $944,520.00
B. $974,610.00
C. $1,002,820.00
D. $1,032,910.00
Q:
Suppose that examination of a pro forma reveals that the fifth year net operating income (NOI) for an income producing property that you are analyzing is $138,446 (you can assume that this cash flow occurs at the end of the year). If you estimate the projected rental growth rate for the property to be 5% per year, determine the projected sale price of the property at the end of year five if the going-out capitalization rate is 9%.
A. $988,900.00
B. $1,465,037.00
C. $1,538,289.00
D. $1,615,203.00
Q:
Suppose that an income producing property is expected to yield cash flows for the owner of $10,000 in each of the next five years, with cash flows being received at the end of each
period. If the opportunity cost of investment is 12% annually and the property can be sold for $100,000 at the end of the fifth year, determine the value of the property today.
A. $36, 047.76
B. $56,742.69
C. $83,333.33
D. $92,790.45