Friday, November 17, 2017

Math Tips and Rounding Rules

Rounding Rules
1 – While working through a problem, you must carry out your numbers at least four places beyond the decimal point
2 – When you are done with the problem, round off to the 2nd decimal place per life experience
                .6666 = .67           .4444 = .44           .2345 - .24
3 – State of Georgia Transfer Tax (fee to record the warranty deed.  Seller’s responsibility)
10 cents per $100 or any portion thereof.  Always round UP to the next whole number.  Correct answers are in dime increments.
https://etax.dor.ga.gov/ptd/adm/taxguide/realtrf.aspx   Based on the amount of money that changes hands or new money (sales price – any assumed loan)

All Cash
New Loan
Loan Assumption
Sales Price
100,000
100,000
100,000
LTV
N/A
80%
N/A
Loan amount
N/A
80,000
N/A
Loan Assumption
N/A
N/A
78,394.17
Down payment
100,000
20,000
21,605.83
New Money (amount changing hands)
100,000
100,000
21,605.83
Transfer Tax
1000 x .10 = 100
1000 x .10 = 100
216.0583
217 x .10 = 21.70

4 – State of Georgia Intangibles Tax – Charge to record the security deed and buyer’s responsibility
Applies when loan is more than three years in length and/or more than $1,500. Correct answers will be .00 or .50
                $1.50 per $500 or any portion thereof    
                New Loan above - $80,000 / 500 = 160.00 x 1.50 =
                Example: Sales Price = $89,950                   LTV 80%
                89,950 x 80% = 71,960/500 = 143.92 à 144 / 1.50 = 216.00

Math TRICK – works 80% of the time
When you have a math question that has 3 variables with 2 knowns and you’re seeking the unknown, use the magic T
Middle
Small
Big

Numbers on the bottom à multiply
Numbers on top and bottom à divide
Broker’s commission negotiated at 7% and the sales price is $100,000.  How much money did broker get?
Answer = 7,000
.07
100,000

** Math Problems: Handouts page 217 – 220 and 227 – 229



Proration Tips
·         Rounding rules
·         Day of closing belongs to the Seller UTO
·         365 days in a year UTO
·         Credit (good)  or Debit (bad)
+ $ received       - $ received
- $ owed              + owed
·         Do what’s fair
·         UTO is interest 
§  day of closing belongs to both
§  360 days in a year




Monday, November 13, 2017

Multiple Choice Test Tips


  • Read the question before you look at the answer.
  • Read the question again focusing on each word in the question.
  • Come up with the answer in your head before looking at the possible answers, this way the choices given on the test won't throw you off or trick you.
  • Read all the choices before choosing your answer.
  • Don't keep on changing your answer, usually your first choice is the right one, unless you misread the question.
  • Eliminate answers you know aren't right.
  • In "All of the above" and "None of the above" choices, if you are certain one of the statements is true don't choose "None of the above" or one of the statements are false don't choose "All of the above".
  • In a question with an "All of the above" choice, if you see that at least two correct statements, then "All of the above" is probably the answer.
  • A positive choice is more likely to be true than a negative one.
  • Usually the correct answer is the choice with the most information.
  • Responses that use absolute words, such as "always" or "never" are less likely to be correct than ones that use conditional words like "usually" or "probably."

Tuesday, November 18, 2014

In a subdivision, a house that sits on a hill with the back of their lot facing a lake has a retaining wall that is severely bulging; noticably only when wlaking along the lake. Who is responsible for the lateral support? And is the agent responsible for diclosing this information even if they didn't know due to not walking the trail (sidewalk) around the lake?

The entity responible for the retaining depends upon who owns the land.  If the homeowner owns, then the homeowner has to make the repair.  If it's owned by the HOA or rather denoted as a common element, then the HOA must repair in order to maintain lateral support.

The agent only can disclose what is know by the agent.

Monday, August 25, 2014

Who determines market value if an appraiser is responsible for determining "appraised value?"

When property taxes are being determined, the fair market value is actually determined by the tax assessor of the county.  This process is not a simple one.  However, it is derived using a combination of the amount of property owned, the location of the property and assigned value of properties in the area.

Appraisers, on the other hand, use information obtained from research of the market and the activity of buyers of other properties.  They use this information to form an opinion of value or appraised value.

Sunday, August 24, 2014

If airplanes go over an owner's house, is the owner entitled to reimbursement of air rights the planes took?

First it should be understood that the state sold properties to citizens with the exception of several routes (air rights).  One would need to go back and research the actual owner of the air rights.  It is more than likely the case that the air rights were either sold to the airport, an airline or included as an exception in a deed.

If a wife's name is on the title, deed and mortgage, is the husband absolved of all late payment punishments?

If the husband is not listed on the mortgage, then he does not have any responsibility/liability to the debt.

Is there an easier way to remember the major difference between an appurtenant and a tenement?

An appurtenant is something that may or may not be attached to the land, but it is a part.  So think of the "appurt" portion of the word as "a part that comes with the land."

On the other hand tenements are always attached to the land.